Problems of the
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HAULIER and CARRIER
Can the Owner-driver Cut Costs and Consequently Quote Lower Rates, Yet Still Make Sufficient Profit ?
A PROBLEM that is often presented to me is that at distinguishink between the man.who looks after hist own vehicle; er VehicleS, and he who employs others for that service. There are many persons who seem td think that this condition makes a vast difference in tith" experise of operation and, correspondingly, hi' the profitable charges that may be made for the hire of
those vehicles. E There were many amongst. those who, during the OlythPia Show, came tOsee me; who voiced that opinion, some in one way anti some in another. Generally, I was told that they were working at rates less than those suggeated in our Tables of Operating Costs, and it was possible to do that and still make a profit for the reason that they "did all their own repairs." It may therefore be useful to try to discover how muoh difference this condition really makes.
Considering, first of all, the cost of operation of tha vehicle, then, of the 10 items enumerated in the schedule, only two are directly affected, namely wages and maintenance. I say directly because it may well be that all the running costs a re inadvertently affected by the amount of attention that the vehicle receives, and this, if the owner looks after it himself, may either be more or less than it would otherwise be.
The heed paid to the machine may be more if he has the time and opportunity for doing the work, because no doubt he will do it more conscientiously, and, so far as his knowledge permits, more thoroughly and efficiently than would any paid assistant. Alternatively, it may be less, because he will be able to do it only at irregular intervals and when he is tired out through working for long periods. THIS WEEK'
as the product of the tonnage hauled and the mileage, the distance TIM without load not being taken into consideration. For example, consider a vehicle running 200 miles during the week, at a total cost of £10, covering 100 miles with two tons useful load and the other 100 miles empty. According to the foregoing method the total ton-mileage is the load carried, two
"I should like to have your views in respect of the cost of vehicles on the tonmile basis. There are, I find, several methods of assessing this cost. As generally understood, the item appears to be accepted
Maintenance Considerations.
Of these two items I need consider only one at length --namely, that of maintenance. The other, wages, has been referred to so frequently in this connection that there must be few of my readers who do not know exactly what my views on this matter happen to be, arid there must be very few indeed, knowing those opinions, who fail to admit their logic. Briefly, the way in which that item should be considered is this. The business of operating a motor vehicle for profit is one which involves the investment of capital and entails considerable responsibility, legal and otherwise.
If the owner-driver refuses to acknowledge the need for setting down the item "driver's wages" as an expenditure, and if he accordingly reduces his charges, all that he is going to make for himself from the running of the vehicle and the conducting of his business as a haulage contractor is the equivalent of the driver's wages—possibly even less I would ask, therefore, if lie be content with that remuneration, why he should shoulder himself with the expense and responsibility oe owning the vehicle? Why should he not, with a contented mind, take a job as driver under some other
haulage contractor, who wilt face the difficulties?
A consideration of the other item " maintenance," may not be dismissed so easily. First of all, we have , to get firmly into our minds what is meant by maintenance. I have often evaded the detailed answer to that question by saying that it covers every item of expenditure in eonnection with the operation of ft Vehicle, except those already set down under the other nine headings. That is the simplest way to answer the question, because in detail there are so many items covered by this one heading that it would take a lot of space to mention them all.
The following is a brief list of the principal items :There are greasing and oiling, meaning attention to all the grease nipples on the chassis and the periodic replenishment of the supplies of lubricant in the crankcase and gearbox. Adjustment of the brakes and the occasional testing of the front-wheel alignment, and, if necessary, correction, form the next consideration, There is the emptying of the crankcase and its replenishment with new oil, and,, at less frequent intervals, similar operations in connection with the gearbox and rear axle. Then comes de c a r bonizing, and, after that, what I may term a minor overhaul. Again, at much longer intervals,' a thorough inspection of both body and chassis is, of tourse, necessary.
Turning back to less complicated maintenance operations, there is the refacing of the 'brakes to be taken into consideration and the more or less regular washing and polishing of the vehicle as a whole.
Finally, there is an item that I triust cover by the word " sundries," under which beading comes the purchase of all sorts of odds and ends, each small and perhaps almostslinsignificant in itself, but totalling a considerable sum in the course of a'year. I have in mind such items as the replenishment of the batteries, replacing lamp' bulbs, new lamp glasses, straightening of mudguards, which have been damaged in some.minor collision and repaired without reference to the%insurarice company, because the cost is so small as to make it preferable to effect the repair rather than to jeopardize the 10 per cent, no-claim bonus.
What to Include Under "Sundries."
There are other expenses covered by the item sundries, and again I must of necessity evade full discussion, doing so by stating that • as a heading it must cover any expenses in connection with the operation of the vehicle which have not already been detailed in the foregoing items.
Now comes the question—What do these things cost, assuming, in the first case, that -all the various operations;enumerated have to be paid for as they are executed by some garage proprietor with whom the vehicle is, perhaps, generally lodged?
Greasing, as a rule, is. needed once every 200 or 300 miles. Most likely the average owner will take the risk of having it done once per week, which. may mean that C39 it is effected only once every 400 miles. I will take 300 miles as an average figure, and for the time being am going to consider what the cost will be only in the case of a modern 30-cwt. lorry. Generally, 1s. will be the charge, provided that the work be done periodically by the garage proprietor who is regularly employed by the owner.
Brake adjustment is needed more or less frequently, according to the design of the chassis. On some. patterns 1,000 miles may be run before such attention becomes necessary ; on others, to cover half that distance without adjustment involves risk. At the same time, brake adjustment is not an expensive operation, and probably is. per 1,000 miles will be a sufficient charge.
The emptying of the crankcase, gearbox and rear axle and their replenishment are more expensive operations, because they take time. Fortunately, however, they are not so frequently n6edect, and I think that if set down 5s. for 5,000 miles I shall be fairly near the actual expense.
The cost of decarbonizing is, again, determined to a considerable extent by the design of the engine, and it may be that I am a little below the correct figure for some chassis if I date 30s. per occasion. I will, however, take 30s. as applying generally and assume that the operation needs performing every 3,000 miles.
I come now to the question of overhauls, In the enumeration of the items covered by maintenance I mention a minor and a 'general overhaul. I should perhaps be more explicit and make it clear that by. minor overhaul I really mean engine examination, and by general overhaul a chassis inspection. • It is the experience of all users of commercial vehicles that the engine overhaul is required at least twice aS often as is that of the rest of the chassis.
It would be absurd for me to pretend to give precise figures for the cost of either minor or general overhaul. So much depends on condition, upon the design of the ; chassis, upon the skill of the garage proprietor concerned in making out an accurate account and one that will readily be acceptable to the owner. I think, however, that f25 is a moderate assessment of the cost of an engine overhaul, to take place after 25,000 miles have been covered, and f 60 for the cost of a general overhaul, to be carried out every 50,000 miles.