O/D's - Contracts and Stuff

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

Hello,

I’m wrapping myself up in knots trying to figure out if I should be moving towards formal contracts when agreeing long term work; and how best to charge…so any advice would be appreciated.

So far I have two customers who are keen on my business model. One has indicated work will be seasonal, 6 months a year, involving long distance. The other, peaks and troughs as demand dictates - some days will be a couple of low mileage drops; others will be full loads in excess of 200 miles one way.

Now, I know my fixed overheads per day; and my variable expenses per mile. The seasonal long distance stuff I know I can price per mile as the mileage involved is sufficient to cover these, plus a reasonable salary.

But I’m really struggling to figure out how best to price the ongoing yet fluctuating work. Do I have set a minimum daily rate + mileage? Or charge high per mile, and reduce the mileage charge in bands? Charge per hour plus mileage?

Clearly the client wants a fairly firm idea of what his transport costs are going to be, long term. How do you guys skins this type of scenario?

Cheers all.

2

Radials in the hauliers favour work well with a charge per hour after the first hour for loading ,standing or using crane ,set the cost per radial by the percentage of fuel you wish to run at or what you think the customer will accept ,charge returns by percentage of out going radial cost too .

3

Any journey under 100 miles radial rates split in to 20 to 25 miles from base is probably best water fuel comes to plus hourly cost depending on how long job takes