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YEAR'S CONTRACT WITH A 2-TONNER.

30th April 1937, Page 96
30th April 1937
Page 96
Page 96, 30th April 1937 — YEAR'S CONTRACT WITH A 2-TONNER.
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Which of the following most accurately describes the problem?

" I have been asked to quote for the hire of a 2-ton lorry for a year's contract to a local merchant. The vehicle will be under the customer's control all the time, and bear his name and advertising matter. It will be used principally locally, but will have occasional runs of 20-25 miles outside the town. The mileage per week will 'approximate to 200 and an eight-hour day will be in operation. I am to supply a new vehicle and driver, and be responsible for all costs. How much do you think that I should charge?"

The actual cost of operating the vehicle would be 2.97d. per mile running cost and £4 6s. per week standing charges, totalling, for a 200-mile week, roughly £7. To that sum you must add something for establishment costs and contingencies, including the possibility of having to supply a spare vehicle; take El per week as sufficing under that heading. A minimum reasonable profit is 12 per week, so that your charge should be £10 per week. You should be paid at least 4d. per mile for each mile in excess of the 200 per week.