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28th January 1977
Page 35
Page 35, 28th January 1977 — Opetwiska outy We amoeba ta
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Which of the following most accurately describes the problem?

Further to the letter by David Williams (CM, January 14) on the difficulties hauliers may have in getting paid for work done, I believe there are several points which should always be taken account of:— a A business that is dependent upon bad payers (and therefore presumably not good customers), must of itself, not be a very sound business.

b Bearing in mind that immediately a job is completed, or goods supplied, the recipient is also immediately responsible, in Law, to discharge his commitments by paying.

Normally of course, this never happens, but this does not change the above situation. Any business worthwhile and sound, should be able, financially, to discharge its obligations immediately without embarrassment, even to the extent of being able to pay against invoices, and by return of post.

Anyone arguing against these principles is treading on very soft ground, and is not running a successful business. Furthermore, he is also arguing against fact, so far as this Company is concerned.

One of the main reasons for delay must be because (in this industry) operators are not receiving the just reward for their work, and their vehicles are not earning what they should. For instance, if operators aimed, say, to earn at least a minimum gross return of £90 per day (C23,000 a year) for a normal maximum-gross flat trailer articulated vehicle, and also related costs to that return, we might find fewer operators going bankrupt.

Not more than six weeks' trading revenue should be outstanding at any given time, and if operators kept a check on all customers who owed longer than the end of the month following the work being undertaken, and took legal action for recovery, with the resolve that that customer would be discarded, he would finish up with the good customer, of benefit to him. Let someone else have the bad payer, and the problems that ensue therefrom.

Of course many firms will delay paying if they can, when they can use the operator's money, interest free, to help finance their own concerns, particularly at the going rates on interest today. The remedy lies with the operator. All he needs is the guts to do it, with the realisation that in the long term he is better off.

Although costing vehicles may be of importance, the more important matter is in ensuring the correct earnings from day to day. Costings can, to the greatest extent, only be history, and in any case, if one operator finds that his castings are greater than a competitor, he cannot expect a customer to meet that extra cost. The remedy lies with him.

Return-load rates (if there should be such an animal), are often a "try-on" con trick, and usually amount to not more than two-thirds of the correct rate, if that, and should be refused, even at the cost of returning empty.

For example, a rate of £32.50 for a load of tractors, on a 40ft trailer, from Coventry to Southampton. This was refused, if only because we would not move it at that rate just back to Newbury I feel certain that some offers are made with tongue in cheek, particularly as in the above case, the rate should have been up to three times the offer for it to be a proposition. yet no doubt the traffic is being moved at that rate by non-professionals and others who know no better.

The Road Haulage Association publish a 'Long 'Distance Rates Guide' which can always be of use in rating traffic, provided that the Guide is kept up to date (the current one should have at least 10 per cent added).

Even so, there can be no excuse for long delays in payment, but the remedy must lie, to the greatest extent, with the operator.

W. A. G. SAYERS, Director, Sayers Transport Service, Newbury, Berks

Tags

Organisations: Road Haulage Association
People: David Williams
Locations: Coventry, Southampton

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