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PROFITABLE RATES FOR BEET TRANSPORT.

30th April 1937, Page 97
30th April 1937
Page 97
Page 97, 30th April 1937 — PROFITABLE RATES FOR BEET TRANSPORT.
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Which of the following most accurately describes the problem?

gl I am about to purchase a new 30-cwt. lorry for a beet-transport contract over a 20-mile route, at 6s. per ton, and over a two-mile route to the station at 2s. per ton. Do you think this is likely to be profitable?"

The operating cost of your vehicle is likely to total about £10 per week. The revenue, at Os. per ton for six days per week, three loads per day, is £7 16s.,. whereas there should be a margin for establishment costs and contingent expenses. Moreover, there will be some weeks in which you will be unable to maintain the above average. It is very obvious that you will not be able to make this work profitable. The plain truth is that a 30-cwt. lorry is too small for sugar-beet haulage.