Answers to Queries.
Page 21
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This Lorry or That ?
[2800] (Barry).—We have, as requested, mailed a copy of our free sheet of costs. Both the lorries which you mention, sa far as experience with them. has accumulated, are likely to give satisfaction.
House-to-House Delivery of Coal in 2-cwt. Lots.
[2801] (Bolton).—You cannot hope to use a motor lorry at less cost, for the work which you mention, than a horse, unless the total, trips can ,usefully be increased to journeys! which aggregate considerably more than 100 miles per Week. , If that is possible, not only should you extend your trade in the sale of coal, but you should•be ableao record an actual economy per mile run iii the cost of haulage.
We recommend you to try to get hold of a good second-hand steam lorry, and, having regard to your location, you might inquire in4the first instance of Leyland Motors, Ltd., Leyland and Chorley.
Making Sure of the Entries.
[2802] (Manchester).—We have not published any specimen sheet for book-keeping purposes, and we cannot refer you to anything of the kind. We think it is best for each firm to get-out its own entries, so that the records suitable to its own work may be kept. These must, of course, state the time -in and time out, stoppages (if any) and reasons for, same, fuel and other stores drawn, and actual or estimated total mileage for the day. The records, of the work done are no doubt supplied ' from the duplicates ci advice notes. Au account for the lorry should be opened in the impersonal ledger.
[2803] (Surrey).—We have as requested, posted Hiring-out His 20.25-cwt. Van.
[2803] (Surrey).—We have as requested, posted
direct one,of our standard have, of working costs. We recommend you to approach as nearly as possible double rthe revenue per mile/run, .compared with the costs which are shown-for an owner who provides his own loads. A contractor must cover various contingencies which do not.arise in the ease of-the ordinary owner-user, including .provision to pay, for substituted service and for management. Such a van-as the one which you mention is generally held to pay, in straight-ahead work; with a minimum of, say, 40 miles of running, at 8d. per mile, but where the work is occasional or irregular, such a basis does not pay. If for any particulas4job an average effective performance equivalent to a minimum of eighemiles in any hour is not obtainable, one has to cover the fixed charges by making a mileage charge which may run so high, even for a one-ton van, as Is. 6d. per mile run. The alternative is to enforce a waiting payment,. in respect of delays, of not less than 4s. 6d. an hour, after a reasonable time for a halt.
Offered 300 Miles of Work for His Five-ton Petrol Lorry, at Is. 6d. a Mile.
[2804] (S.W.).—You should be able to pay all right on a revenue of is. 6d. per mile with a five-ton lorry, on the basis of 300 miles per week, provided you are guaranteed payment for not less than 250 miles a week, even though the mileage fall below it, each week to be reckoned on its own basis, and one week not to be set off against another. It is impossible to advise in detail as to the wording of a contract, without full knowledge of the class of work to' be undertaken. It is advisable, however, not to'give an absolute undertaking to do the haulage for 300 miles a week, each week and every week., unless you have the means at your disposal of providing another machine in case of accident-or breakdown. If you wish. to protect yourself against that contingency, and cannot provide another vehicle with certainty, either by arrangement or by hire, you will do well to safeguard yourself in the contract against the non-pro vision of haulage in those events, for which time, of course, you will have to be prepared to accept suspension of payment. If the roads over which you are to operate are exceptionally hilly, or of exceptionallybad surface, you should add another 3d. per mile, in order to have a satisfactory margin of profit.
Petrol v. Steam Four-tonners in Use.
[2805] (Lancs.).—Further to Answer No. 2767, and replying to your supplementary points, it appears to us that, unless you can get the mileage of the steamer up, the cost per mile will remain high. On a favourable basis, this cost-should go down to at least 2d. per mile run below the best you can get with a petrol lorry. We cannot understand why the assistant of the steam lorry should be paid more than the assistant with either of the petrol lorries. Again, the number of deliveries with the steam lorry is not in ratio with the mileage ; is this becauSe the consignments are heavier, or in any way more awkward to handle l We see that the average weight of each delivery is distinctly heavier for the steamer and this may have a direct bearing upon the result, in the matter of lower mileage. The packages may be more difficult to handle, even if both men work.
The only suggestion we can make to you is that you offer the driver a small bonus on your delivery effected, and per -mile run, arranging it so that he will draw, say, not more than an additional 5s. per week on his bringing up both the tonnage and the mileage in line with those which are accomplished by the petrol vehicles. As regards depreciation, we think you are on a very high basis ; it is usually quite a safe plan to calculate depreciation on a, life of 125,000 miles, and there are numerous cases within our knowledge for which a basis of 150.000 miles is adapted. We consider this basis better than a percentage allowance per annum.