FROM THE POSTBAG
Page 60
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A Midland distributor states that a client is considering the purchase of a maximum load articulated eight-wheeler which is subsequently expected to average around 1,000 miles a week. He asks for information as to the charge per mile this client should make to his customers, inclusive of all costs, so as to give an adequate profit margin.
. As shown in "The Commercial Motor" Tables of Operating Costs, the recommended minimum 'charge per mile for a 16-ton artic averaging 1,000 miles a week is 30.52d. This figure is made up of five items of standing costs and five items of running costs to give a total ,operating cost per mile at this weekly mileage of 21-80c1. To this basic figure is then added 20 per cent for overhead Costs and 20 per cent for profit margin to give the recommended charge per mile of 30.52d.
A relatively high weekly mileage such as this implies regular running. But should there be occasions when excessive standing time is involved,then a more prudent method of charging would be on a combination of both time and mileage. In that event a charge per hour of 216.56d. plus a, charge per mile of 21.77d. would be appropriate for this vehicle,_