Answers to Queries.
Page 23
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[1,774] " NEWCASTLE " writes :—" You may recollect -that, some while ago, you kindly advised me in regard to
commercial service about which I required some particulars. I have now received further particulars as to
this and would be glad in the circumstances if you will kindly criticise the figures I have put down, bearing in mind that the load is usually 10 cwt. and up to a maximum of 14 cwt., the speed to be from 13 to 14 miles per hour. The distance required would be over 17,000 miles per A spare van would be kept, and the ran in use would be garaged during the day at the other end, 24 miles .away.
" I propose using a 15-h.p. two-cylinder yap, with screens, lamps, milometers (for tire records), one spare rear and one front tire, fire extinguisher, etc. The tires will be guaranteed for a mileage of 10,000, which will work out at a cheaper rate than at so much per mile. If the .service could economically be run on pneumatic tires, cheaper van could be purchased. I rather thought of the 15-h.p. —, which should be excellent. I append the .estimate which I wish you to criticise.
INTEREST: two vans at £885, screens, lamps, milometer, and spare rear and front tire, fire extinguishes-, etc.—£827 at 5 per cent.-241.
INSURANCE: two vans (might insure for third party only, or one van out at a time at a reduced rate).-222.
RENT AND GARAGE: one end, rates, registration, etc.— £26.
DEPRECIATION: at 20 per cent. on £827.—L165.
MANAGEMENT: one day per week, no available railway, 49 miles.-1:95.
WAGES: driver, spare driver, and boy to wash ; the equivalent of two drivers at 32s.-2166.
FUEL at 12 m.p.g. ; 1,440 gallons at 1s.—L72. LUBRICATION £12.
STORES: spare parts and lighting (paraffin).—L6. REPAIRS AND MAINTENANCE: at 10 per cent. —L83. TIRES: guaranteed 10,000 (£49 6s.) per set.—L86. LICENCES: Excise, driving, etc.—L.2. CLOTHING (part of contract).-217.
TOTAL: £793.
" It seems to us that this would not be a very " fat " job at. is. per mile, unless a cheaper class of van and pneumatic tires are feasible. Pneumatics would surely dc. crease the maintenance charge, taking into consideration the fairly-light load and the fair speed.
" If we touch the work at all, we want to do it properly that is why we are rather shy of light chassis. "I should mention, in conclusion, that the roads are fairly-goods macadam, and the particular route we have in mind is almost flat from end to'end. Trouble might be experienced with floods in the winter."
ANSWER.—With regard to the figures which you submit to ins, we offer you the following criticisms.Primarily it should be of considerable advantage for you to endeavour
to increase the proposed remunerative mileage. Such items as rent and rates, insurance, management, driver's wages, etc., bear an unduly-high charge,if the mileage be not sufficiently large. We should suggest an average weekly mileage of 400 as the most remunerative for this class of van.
Secondly. after a. careful examination of your proposal, which involves apparently a daily mileage of 55 miles on six days a week, we are of opinion that the Provision of a spare van is, nowadays, for such a service, an unnecessary safeguard. Unless there are exceptional circumstances, of which we are unaware, in the form of penalties, etc., we consider that you are rendering your scheme unnecessarily expensive. We do not hesitate to recommend you to run the service with one man and a boy, and to arrange for small adjustments and repairs to be undertaken after running hours, or on Sundays if they prove to be of any magnitude. There should be no reason why a good vehicle, such, for instance, as that you suggest, should not maintain an uninterrupted service during a twelve-month, with, say, two weeks or thereabouts off for a thorough overhaul. Under this scheme you would nearly halve such items as interest, insurance, rent of garage, depreciation and drivers' wages. You should only need to make provision for the annual expenditure of a small sum for the hiring of a relief van for the fortnight's overhaul. With regard to the rate of depreciation, we, nowadays, prefer to consider this, for all approved vehicles, on a mileage basis, since types are not now readily rendered obsolete, and therefore an annual rate, irrespective of work done, is misleading. The remunerative life of such a van as that which you favour might well be placed at over 120,000 miles.
The item charged as " Management " is one which must he left to your own judgment. We should prefer, in an estimate for so small a service, in which wages and maintenance are already fully charged, to see such an item merged in profit. In your estimate, it seems unreasonable that., for the running of one service van, whose whole repairs and maintenance are to cost £88, the management, in addition to the driving, is to cost about £72.
You might be. able to get more than 12 miles per gallon from your petrol (you should specify a " Solex " carburetter), although you are to run on solid tires, and your petrol, on which a tid. rebate is payable, should cost you less than is. per gallon. We do not think that, for country service and for the speeds and weights you specify, you could economically employ pneumatic tires, although you might experiment with pneumatics on the front wheels. You will probably get more miles out of your tires, if of good make, than the total of your guarantee.
As a final guide, we add a table comparing the approximate mileage charges based on your estimates and your two-van scheme, together with the charges we suggest. you should be able to cover for the one-van scheme.
It occurs to us that, possibly, you may have in mind a postal-mail service, although you give no indication that that is the ease. If this be so, and you have to provide a spare van, you must consider our figures and criticisms with that modification as a vital factor.