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HINTS FOR HAULIERS.

31st July 1923, Page 25
31st July 1923
Page 25
Page 26
Page 25, 31st July 1923 — HINTS FOR HAULIERS.
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Further Comparison of Hire Charges, Showing that the Advantage Does Not Really Lie with the One-lorry Business.

IT BECAME apparent, in the course of the last article but one of this .series, in which the recording of operating costs is being discussed,' that the establishment charges of 'a man owning three lorries, but not driving one of them himself, are very considerably in excess—per lot ry---of those of the one-man one-lorry owner-driver concern and Very much indeed in excess as regards the total. In drawing attention to this matter before, I remarked, that there were reasons why the appearance might be decylive. Not only are the figures Which I gave entirely supposititious—not, of course, as regards the actual fact of expenditure under the headingsenumerated, but as regards the actual amounts—but the effects of the overhead charges are

• not to be measured by direct reference to the amounts expended, -without taking into account the results of the various forms of management, their effect on the takings and, in particular, on the mileage run.

There are several ways in which one might discuss the matter, and, in fact, it rather seems as though its consideration from all points of view would be beneficial. Take, for a start, the state of things suggested by the table which was published in connection with the previous article—that table which showed the various hire charges for different weekly mileages, onthe assumption that a regular profit of 30s. a week was to be made by each lorry. Well-, of course, if there were so much work to be had that each of us could answer, when asked for a quotation, by presenting that table, or4he column of it which applied to our particular form of buSiness and say: "These are my terms .take them or. leave 'them," all . would, indeed, be well with the industry, and all would be particularly well with the one-lorry man, who would get his business on price all the time. All, however, and unfortunately, is not well with

• the industry, and it could certainly be a lot better than it now is, and still be far from the state suggested above. .

Business does not. at this time fall into one's hands ; it is not even to be had forethe asking, but i has to be sought, long and earnestly, before t is found. Now it is still, even in 1023, a fact that no

man can be in two places at once, and there are still astonishingly few' occasions When he can do two jobs at once. The 0\1711er-driver, for example, cannot do Much in the way of getting', business while he is driving his lorry on some .contracVor other. He may do a little, but it is alittle. The consequence is that his profit-taking mileage is reduced, what time he is looking up 'possible customers and searching for work: 'While he is getting hold of a job of work," his lorry, had he loads for it, might easily covera hundred miles, and that every week. It is there that the man who abstains from' driving gets the pull, it is in obtaining orders for his three lorries to carry out that he earns his 25 per week. He keeps his lorries on the "'bad,and maintains that most important and extremely essential thing—the weekly mileage—at a high fignie.

Better Administration Alters the Situation.

Suppose the one-man business is doing an average of 200 miles contract work a week (I put it that way because I do not want any man to delude himself with the idea that if he travels round 50 miles a week on his lorry canvassing, he may reckon that 50 miles in on these calculations_ He cannot ; rather the reverse, as I shall show in a minute). He is all right if he can get is. lid, a mile ;at that rate he is making 30s. a week profit en his vehicle, besides, of course, his wages as driver. Now, the other man,' running the same mileage, and wishing to 'Make the same profit per lorry, must charge 2s. id. a mile, so that h3 is rather against it. If, however, he can; by his energy during the week (bear in Mind ho has no driving to do) get enough work to keep his 'lorries going 300 miles a week, then he can take jobs at is. 877d. a mile, 'thus entirely reversing the advan-tage and making it easy for him to compete With the one-lorry Man. On that basiS, it rather looks as though,the extra establishment charge is very muchmore than justified. Of course, he may not: get that extra hundred miles, but even if he gets 50, he is still a halfpenny a mile to the good, and he certainly has far the better chance of being able 'to get extra work.

I have made a chart to Show how it is possible, by a comparatively slight increase in his mileage, for the three-lorry non-driving mart to bring his rates down to the same level as the one-lorry owner-driver. Three examples are shown on the chart ; the reader may choose others if he wishes. .

Suppose, for example, the "Case 1" man is running 50. miles a week, for which he is charging 4s. sd. a mile,. and he wishes to know haw many miles a competing "Case 3 " man must run before he can compete on price. Look up the line at the left-hand side of the chart until 50(1. (4s. 8d.) is reached. Run a horizontal line through both the curves on the chart. The curve for " Case 1" man will be cut immediately over 50 miles (on the base line) and that of " Case-3" man over 621 miles, showing that the latter must run 62112 miles to the other's 50 if he is to be able to meet his competition on level grounds.

Treating the other examples in the same way, it is apparent that 235 miles on the part of the " Case

man will enable him to charge the same rate as the `'Case 1" man, whO is doing 200, whilst 350 miles is a similar answer, on his part, to 300.

It is rather interesting to note that, whilst it is at low ,mileages that the difference in mileage rate is so great, yet a comparatively .small increase in ntileage puts the rates on a level: At 50 miles a week, for eiample, the " Case 1" rate is 4s. .8d. per mile, as against 5s. 7d. for " Case 3," a difference of no less than 11d, a mile, but. anextra mileage of 124 a week suffices to level Matters Up. On the other hand, at 300 miles a week the difference is only 1.4d. (Is, 8.7d. as against Is. 7.3d:), but it needs an extra 50 miles a week to straighten matters out between them.. Thus, once again, we see the advantage of maintaining a high weekly mileage.. In this instance • it' is apparent that a high weekly mileage by the " Case 1 ' man makes it very. difficult for the Case • 3" man to compete. THE SKOTCH.

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