AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

TRANSPORT TIPS FOR TRADESMEN.

6th December 1921
Page 23
Page 24
Page 23, 6th December 1921 — TRANSPORT TIPS FOR TRADESMEN.
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

Particularly Addressed to Those Who are Replacing Horsed Vehicles by Motors, or Contemplating So Doing.

IHAVE referred more than once recently in these notes, on the one hand to the great importance of accurate records being kept by users and, on the other, to the fact that the lowest priced proposition is not necessarily the cheapest. Brief mention was made of instances in which when records of comparative performance have been carefully kept, it has been found that the financial advantage is all in favour of the more costly vehicle.

I am now in a position to support these general arguments by means of certain figures, compiled by users themselves as a result of organized efforts on their part to ascertain just what their future purchasing poli4 ought to lie. In quoting from the figures at my disposal, I have deliberately omitted the names of the actual vehicles to which they refer, my purpose being not to advertise any specific make but to establish an important principle. It may be that the figures will be challenged, seeing that they undoubtedly favour first-class British goods as compared with foreign goods of excellent reputation having regard to their lower cost.

I do not suggest that in every conceivable instance it will be found that the choice between two vehicles should fall on that which costs the higher figure. I do feel, howeviv, that the whole future of the British industry is dependent on a realization of the fact that the contrary is not necessarily true, and, in many carefully analysed instances, is found to be quite incorrect.

The following figures are compiled, from full records, by the engineer of a large company opgrating numerous motor vehicles. We will take first the standing charges: I have intentionally lumped together certain important items which, if given separately, would have immediately indicated the exact cost and h.p. of each vehicle and thus have shown to what makes the figures refer. I should, however, mention that though the foreign vehicles' figure for depreciation, i etc., s the lower, the rate of depreciation is greater for the foreign vehicle, it being the experience of the engineer who compiled the figures that the British vehicle is more durable. He has been able to prove this to his own satisfaction by reason of his past experience over a period of years. Let us now turn to operating costs based on a mileage of 12,000 per annum. It will be noted that the lighter vehicles are pneumatic tyred, but despite the protection afforded by these tyres the repair bill per mile is considerably higher. . Set of solid tyres 25 11 6 40 gallons of engine oil at 4e. 7d. per gallon at 300. miles per gallon ... ... 9 3 4 8 gallons of gear oil at 3s. lld, per gallon 1 11 4 8 lbs. of grease at 5td. per lb. ... ... 3 10 1,333 gallons of spirit at 2s. 5d. per gallon at 9 miles per gallon ... ... 161 1 5 Repairs and maintenance at .5d. per mile 25 0 0 2 sets of front and 2 sets of rear pneumatic covers plus 2 front and 2 rear tubes ...

40 gallons of engine oil at 38. 6c1. per gallon at 300 miles per gallon ... 5 gallons of gear oil at 3s. ltd.-per gallon 5 lbs. of grease at 5N. per lb. ... 1,091 gallons of spirit at .2s. 5d. per gallon at 11 miles per gallon ... Repairs and maintenance at 1.2d. per mile

Next we have the statement of the engineer that two of the 30 eve. vehicles can do the same amount of work as three of the one-ton vehicles and can do it three miles an hour faster. I should not have expected to find the higher speed so much-in favour of the heavier vehicle, but it is impossible to contest the facts that are apparent from the records. The other statement, namely, that two 30 cwt. vans will do as much as three one-ton vans is, of course' open to argument. It is merely an expression of opinion applying to a particular instance. Its accuracy depends on the nature of the load and of the work. If the work consists of small retail deliveries, the three one-tonners would have the advantage, if capable of maintaining the same average speed. If the work consists of direct journeys with full load, then the statement quoted is correct. We may, however, for general purposes, balance any advantage in favour of the smaller unit against the loss of speed which we are definitely

informed accompanies its use. In that case, we arrive at the following comparison. The work can be done either by two of the 30-cwt. vans or by three of the one-ton yaps. In the former

ease, the annual cost is £1,366 143. 4d. In the latter case, the cost is ii,9ao exactly. Thus the saving resulting from the use of the two British vehicles— which cost considerably more in the first instance than the three foreign vehicles — amounts to £613 5s. 8d. per annum after full allowance for depreciation and interest or, in other words, for the influence of first cost in each case.

In all that has gone before we have to recognize that our comparison is not fair in one respect. Supposing that the work was such that nothing above a ton could ever be loaded into the vehicle body, then the two one-tortners would be just as capable of doing•it as the two 30-cwt. vans, and the balance of advantage would be with the former in the particular instance considered.

This being so, let us take another instance, again dependent on users' and not manufacturers' figures. Here, I am not at liberty to give particulars in quite so much detail. I may say, however, that the figures given refer to vehicles of high repute in each case. The foreign vehicles are the cheaper in first cost. For the most part they are also newer and therefore might be expected to require less expenditure on repairs, -The records have taken into account every conceivable item. The same rate of depreciation has been allowed in each case, though it seems to me from the 'figures that the foreign vehicles do not look like lasting so long as the British machines. The figures, mdreover, refer to a considerable number of vehicles in each case and therefore do not represent the exceptional performance, good or bad, of one or two machines.

The results with a fleet of British vehicles of three-ton capacity show a total cost of is. qd. per mile over an annual mileage of approximately 14,000.

The fleet of British 30-cwt. vehicles gives an average total cost of is. id. per mile over an average mileage of 16,000.

The fleet of foreign one-ton vehicles gives an average cost of is. 6.0. per mile, also over an annual mileage of 16,000—equal to the cost oPthe British three-tonners!

Assuming that in practice the foreign vehicles actually carry the same loads as the lighter British vehicles, we still have a difference of 50. per mile in favour of the latter, after full allowance has been made for their higher first cost. Any user can readily reckon out for himself what 51d. a mile saved means to him, having regard to the number of vehicles he uses and the mileage that they cover.

One more point, for emphasis of which I may revert to the first series of figures given. In those it will be observed that the total operating costs in either case were in the neighbourhood of 2660 per annum. Assuming the life of the vehicle to be six years, the approximate expenditure on standing and running costs during that life is about £4,000, and it will he readily recognized how comparatively small a percentage of this total cost is in any way

directly concerned with the first cost. In other words, over the life of a vehicle, the writing off of first cost is a small matter compared with defraying the costs that are incurred periodically. It is, therefore, in respect of the latter that the greatest savings ears be realized. Where one may make an apparent saving of a couple of hundred pounds or perhaps more in first cost, there remains the posaibility of making five times as great in operating costs.

a The figures given show, I think, quite clearly ahat terribly expensive errors may be made, and doubtless are made every day, in the selection of vehicles by users who do not keep full accounts and records of their, own, or who unwisely base their. selection on the results of incomplete records kept by people using vans in comparable businesses. If every user would keep proper records, hundreds of thousands of pounds now wasted every year would he saved, because people would presently learn to buy to the best advantage and not merely in the lowest-priced. market. My personal opinion is that the result would also be the more secure establishment of the British industry.

This may he no direct concern of the user, unless rhe can prove for himself that purchase from home sources is the best policy in the long run. While admitting that I, personally, am firmly convinced of the importance of maintaining and developing the home industry, I do not ask that users should buy blindly from British -manufacturers because they are British, but only that they should buy after thorough study of their subject, which is only possible by reference to properly kept records of their own or other people's.

There is an old proverb to the effect that, if you want a thing done well, you should do it yourself, and I would, therefore, urge every user to keep such records and to make full use of them when he has compiled them.

By records I mean really thorough figures which can be relied upon to tell the truth ; slipshod accounting may do far more harm than good.

Tags


comments powered by Disqus