I came across one of Buffaload Logistics vehicles today, a double decker emblazoned with the advertising “more load less cost”. It would appear that this is the haulage company’s promotion idea and not that of the trailer manufacturer. Is this the latest idea then? buy really expensive equipment and then charge your customers LESS money than you would have done without it? No wonder…
Not really,
2 double deckers will carry what 3 standard trailers would,so yes the trailer costs more but for every 2 runs your doing what you would of required 2 units or additional trips on the road before.
A decker will carry a full trailer load plus another 3/4s of a load of a standard trailer so effectively saving a trip and a additional unit/driver/fuel bill ect ect
For example One trip costs £1000 but the normal trailer won’t carry the lot so 2 units and trailers required,it then costs £2000 to get the load done,along pops me decker man and shifts the lot in one trip for £1500.
Essentially it comes down to reducing the fixed : variable cost ratio.
It costs the same to operate a lorry whether you’re hauling fresh air or concrete blocks. So the more blocks you carry at £x per block, the smaller the share of the fixed costs per block, even though the variable costs ( fuel, tyres, etc. ) increase.
Eg.
Fixed costs (unit, driver, insurance, etc.) equal £2000 per week.
Variable costs per block equal £100
Hauling 10 blocks per week equals £3000 or £300 per block.
Haul 100 blocks a week and the total costs would be £12000 or £120 per block.
Not disputing that argument, but that is looking at it from what it costs the haulier which we will say is £1000 for the trip. The haulier charges £1400 for one trip so he makes a gross profit of £400 for one load. But there are two loads, agreed his costs will be £2000. But his gross profit will be £800 for the two loads. Instead he loads his D/D and does the lot in one run,the customer knows that it has only taken one run to shift the goods but pays £1500, disregarding the extra cost in running a D/D we will say his profit is the £500 difference between his costs and the revenue received. Why let the customer have the benefit, because that is what the advertising on the trailer is saying.
Of course it saves the haulier money only having to make one (or 2)trip(s)instead of 2 (or3), but this advert is proclaiming that “my rate per pallet is lower”. All businesses are trading to provide a product or service and to make a profit from doing so. What they are not in business for is to subsidise their customers. Fine if you can get the same rate per pallet for your D/D as for a standard trailer, but that is not what is being advertised.
cav551:
Not disputing that argument, but that is looking at it from what it costs the haulier which we will say is £1000 for the trip. The haulier charges £1400 for one trip so he makes a gross profit of £400 for one load. But there are two loads, agreed his costs will be £2000. But his gross profit will be £800 for the two loads. Instead he loads his D/D and does the lot in one run,the customer knows that it has only taken one run to shift the goods but pays £1500, disregarding the extra cost in running a D/D we will say his profit is the £500 difference between his costs and the revenue received. Why let the customer have the benefit, because that is what the advertising on the trailer is saying.Of course it saves the haulier money only having to make one (or 2)trip(s)instead of 2 (or3), but this advert is proclaiming that “my rate per pallet is lower”. All businesses are trading to provide a product or service and to make a profit from doing so. What they are not in business for is to subsidise their customers. Fine if you can get the same rate per pallet for your D/D as for a standard trailer, but that is not what is being advertised.
A. If you don’t pull one and your rival has one you’ve lost the work to them as they’ll do it for less.
B. Using your figures, you do 2 trips to do a job with a standard trailer and you make £800 profit. with a double decker you do the work in one trip and make £500 profit and now have a vehicle available for another job for another £500 profit. in the same time to made £800 with a standard trailer. This is ideal world though.
For as long as I’ve been in this job it’s been the same. Somebody thinks up a way of moving twice as much for the same cost and instead of thinking “Cool, I can make twice as much money” they think “Cool, I can ■■■■■ the rate by 50%” 
Harry Monk:
For as long as I’ve been in this job it’s been the same. Somebody thinks up a way of moving twice as much for the same cost and instead of thinking “Cool, I can make twice as much money” they think “Cool, I can ■■■■■ the rate by 50%”
Spot on.
Over the past 50 years every time there has been an increase in gross vehicle weights and vehicle dimensions or carrying capacity, rates for haulage work have diminished and gross profit margins correspondingly reduced.