• Guidance for Newcomers
Page 66
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Experienced Operators seem to Wish to Help Possible Newcomers to the Haulage Industry: "The Commercial Motor" Costs Expert Resolves Some Doubts of a Driver Considering the Purchase of a 12-Tonner from B.R.S.
THERE are many aspects of the haulage industry which give grounds for argument, but none more than the subject of costs and rates. Even the oldest and most experienced of those in this industry are none too sure of themselves when that subject is broached..
With denationalization, there is bound to be a large proportion of newcomers to the industry. Many of what I like to think of as "the old brigade" wilt not be coming back: they have had their good times and their bad and while the game was on, they were quite prepared to go on in their old ways. The business has always held the enthusiasm of members who enjoyed fighting and dicr not regard it as anything but a man's job.
To re-enter and, in a way, make a fresh start almost from scratch, is not quite the same: there will bd buyers and bids for the " units " in plenty but, in my opinion, there will be a majority of newcomers among them. I am the more sure of this because I find that so many of these prospective buyers who approach me are not the old hands, but outsiders.
Among all this activity there is something new: the members of the older crew are taking steps to keep the new fellows out of trouble. They are doing what has not been done for many years, if indeed it has ever been done before. They arc asking their intended competitors to come and see me before becoming toosinvolved.
Inevitable Outcome
I am rather proud of that, as the reader will readily understand. What do these experienced hands expect to come of sending a fellow to see me? I think it is this: experienced hauliers are aware that, if the advice given in these articles and in letters responding to any requests for assistance is followed, there will be less chance of the beginning of a rates war which many still in the industry think will be the inevitable outcome of denationalization. There may be such a trend: I cannot say, but even if it does develop in that way, we shall still be a good deal better off than under nationalization.
The individual haulier recommending a competitor to come to see me is confident that, whatever be my advice, it will not embody a recommendation to cut rates. Sometimes, indeed, I receive a letter from a haulier friend asking me to send copies of "The Commercial Motor Tables of Operating Costs " to a few of his competitors.
I was therefore pleased, but not altogether surprised when, visiting one of my regular correspondents in the Midlands, a36 he asked me to step around with him to see another nil who, he said, was determined to buy a small unit and bui up a business around it. I agreed to do so, of course. I took me along, introduced me to his friend and tin tactfully withdrew.
"What made you think it might be a good thing become *a haulier?'" I asked. "Have you had at experience?"
"Not of haulage work," he said, "but I know a go( deal about commercial motor vehicles and I would like, I'can, to get into' a position where I can be my own boss "Can you' tell me a little about your experience?"
asked. Do you mean that you have gathered experien, about commercial motors in a workshop where they mal or repair such vehicles?"
Past Experience
"To tell you the truth," he replied, "I have had a lilt experience of all sorts. I've been on the road and in ti workshops. I served my time as an apprentice with manufacturer of commercial vehicles and I spent 31 yea there in the assembly shop. I had plenty of experience ( all the components of a chassis. 'Besides that, I had advantage that the service department was part of 'El assembly shop and I learned a little of the troubles tin arise in connection with the operation of such machines.
At the end of my apprenticeship I got the-sack, becate the manufacturer to whom I was apprenticed hadn't enoug work to justify him in keeping me on. Next I got a Jo in a garage. I had 21 years as a motor mechanic befor taking up my present job of driving a confectioner's van, I said: "So you really have a reasonable all-round won! ing knowledge of the construction of a motor vehicle, i maintenance and repair, as well as of actual road condition: You've also gained some knowledge of the troubles tlu beset the driver of a motor vehicle when it is on the roar You know something of the problems of loading an unloading, although there is not a great deal of that i operating a bread round. Of course, you will appreciat that handling confectionery is one thing and that if yo do set up as a haulage contractor you will have a lc more than that to do."
"As a matter of fact," he said, "I've had this idea o my mind for a long time and now, with the chance o being able to buy a few vehicles with an A licence attache to each, it almost seems as though things are deliberate] ring my way. I've kept my eyes open for "I thought I would buy a 12-tonner, a. the B.R.S. stock and run a two-way 3ndon and Leeds."
"Have you any capital?"
"Yes, £500." some time now. six-wheeler, out traffic between "Obviously, you are going to buy by instalments." " Yes," he answered. "I am going to try to find a iod and substantial vehicle and I expect to get it for about !,500. I shall hope to be able to get it by paying £300 vwn and the vest in instalments of £35 per 'month. What want to know, and this is a matter in which I would irticularly like your help, is first what is the best way get in touch with potential customers, and,. second, if can place much reliance on clearing houses for return lads."
Prosp2ets of Work
"Have you made inquiries among potential customers to ad what prospects there are of you obtaining work?" "There is nothing in this district," he answered, "but Lere are several firms in Manchester and Bolton who have ndertaken to give me loads both for Leeds and for ondon."
"Then really," I pointed out, " you don't need much ivice from me as to the way to obtain work, You have !ready made a start in the right direction, for there is, in ty opinion, no better way than by personal canvass. You lay find that you will do a little better when you are able call with the 'vehicle to show what sort of accommodaon you have for the traffic the prospective customer has offer. And mind you keep that vehicle well washed and olished," I added.
Oh, I know all about that! " he said. "I've been itading some of your articles on that subject. But I should ke to know a bit about clearing houses."
"Now, there you need to be careful," I warned him. There seems to be an impression abroad than when these x-B.R.S. vehicles start work there is going to be a flood f so-called 'clearing houses of the less-reputable type, oncerns which exist only to fleece the novice haulier like ourself.
Return Loads "In the bad old days there were many of them, stationed t strategic points in London, Leeds, Manchester and Liverool—usually near a lorry park, where chaps like yourself
• ut the lorry up for the night and begin to search for loads or the return journey. .
"They used to take loads at ridiculous rates in the ond belief that a load at any price at all is better than one, an impression which is just what the doctor ordered o far as the bad type of clearing house is concerned. I Lad the job of investigating the Workings of such concerns little before the war, and a farcical state of affairs was liscovered and, to a certain extent, improved..
"When the war came, and even before that, when loads if all kind were plentiful and operators were in no difficulty .s regards return traffic, the disreputable class of clearing Louse passed away. I am happy to note that there are now wo organizations which are determined that there shall be available a number of clearing houses which can be vouched for.
"One of the organizations is under the auspices of the Road Haulage. Association, the head office of which is 146 New Bond Street, London, WA, and the other is the National Conference of Road Transport Clearing Houses, 83 Pall Mall, London, &WI The latter concern has been in existence for some years, long before the war; the former has recently gone carefully into the question of a code of conduct for clearing houses which can be recommended. "The code provides for fair treatment as regards rates,. limits commission to 10 per cent. in all; provides for prompt payment of accounts, and stipulates conditions of carriage. If you are proposing to. make use of the facilities which a good clearing house can offer, you-should first of all contact one or both of the. above .organizations."
"Thank you for that information. Now will you tell me how, to calculate charges, supposing that I have a load of several consignments, each from a different client."
"That's never an easy question to answer," I said. "The best that I can do is to give you a general idea of the charge per ton or per cwt. as a basis for you to work on.
"Look at it in this way. You will be covering about 1,000 miles per week and, at that distance, your cost of operation, according to the Tables, will be ls. id. per mile; That's about £11 8s. each way between London and Manchester, and approximately the same for any of the industrial areas of the north-west and north-east. Probably, by the time expenses and subsistence allowances have been paid, the total will be 112 10s. (to the nearest shilling).
Not All Profit "The Tables recommend you to charge at the rate. of Is. 81d. per mile. The difference between the operating cost figure and the charge is not all profit; it includes provision for what are called establishment costs, Which
differ considerably between one haulier and another. • At any rate, that charge of la. 81-d. per mile is a minimum. It means that you must obtain about £18 6s. per load in each direction."
"That's £18 6s. for a full load to London or from London to here, is it?" he asked.
"That's right," 1 said, " about 30s. per ton."
"Is there much chance of my getting that?" he queried.
"There are plenty of loads going at more than that," replied. ".As a matter of fact, I should have mentioned that 30s. per ton is the minimum; you shOuld get more.
"The trouble will arise when there is a dearth of traffic, for it is then that rate-cutting will inevitably start, and there will be plenty of offers on the part of hauliers whip are short of loads to do the work at less than 30s. per ton. You will find that to be your principal snag and if you endeavour to imitate these rate-cutters you will be lost."
"But I'll be lost; anyway, if 1 don't get the work, won't I?" he asked.
"You'll get the jobs at a proper price if you stick out for it, and if you give value for money in the way you do the work, with special reference to regularity;punctuality and reliable service generally," I answered. "Anyway, 30s. per ton, or 2s. per cwt. for part loads is your minimum, and my advice to you is to work on that basis." S.T.R.