TAKE A STEP-BY-STEP APPROACH TO ENSURE PROFITABLE OPERATION

Many operators, in order to get work in the highly competitive haulage market are finding the price being quoted by others and then are undercutting their quotes without considering the consequences. The author uses an example to illustrate a guide for calculating the price for efficient working. The first step is to establish a system of accurate and detailed financial accounting backed up by records of vehicle mileage, fuel consumption and wear. Vehicle depreciation should be taken as an operating cost. Vehicle operating costs must be up to date and a time cost per effective working day must be determined for each particular vehicle. Total costs are a function of costs due to time costs and distance costs and also include wage costs and driver training costs. When invited to quote, the need is to assess the mileage to be covered, the time taken and the problem of return loads, when the additional time and mileage would be added to the estimate and a decision made on the amount of allowance for corresponding revenue. Actual costs of a job should be compared with the quotation to check performances. Weekly profits can also be forecast and checked. (TRRL)

• Corporate Authors:

  Road Haulage Association

  104 New Kings Road
  London SW6,   England 
• Authors:
  • Fish, B
• Publication Date: 1984-3

Media Info

• Features: Figures; Photos; Tables;
• Pagination: p. 37-40
• Serial:
  • ROAD WAY
  • Volume: 50
  • Issue Number: 3

Subject/Index Terms

• TRT Terms: Calculation; Cost accounting; Costs; Driver training; Economic factors; Economics; Freight traffic; Freight transportation; Fuel consumption; Motor vehicles; Operating costs; Personnel; Pricing; Revenues; Tariffs; Transportation; Travel time; Trip length; Trucking; Vehicle miles of travel; Wear
• ITRD Terms: 6464: Calculation; 224: Cost; 1571: Driver training; 263: Economics of transport; 232: Fuel consumption; 741: Goods traffic; 697: Journey time; 221: Operating costs; 102: Personnel; 241: Tariff; 292: Vehicle mile; 5293: Wear
• Subject Areas: Economics; Planning and Forecasting; Transportation (General); I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00389489
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD, TRIS
• Created Date: Oct 30 1984 12:00AM