Q. How do the cost tables work?
A.We take all the costs involved in running a truck and separate them into two types:
fixed (standing) costs which you have to pay whatever the circumstances, and running costs -
which vary according to how many miles you cover. We then work out the total costs for a truck for
a specific annual mileage and add a profit margin which can be set by you. The result is how much you
have to earn each year for that truck at that mileage to make that profit margin, and how much you have
to earn per mile. We also show the total of costs of all the trucks in your fleet.
The result is that you know how much you have to charge for your work.
Q. Can the cost tables help me in planning?
A. Yes. You can change any of the figures so you can immediately see the effect on
your fleet costs of, for example, a change in fuel prices. You can see what effect writing your vehicles
off over a shorter or longer period would have, and you can see the effect of different acquisition prices
on the total life costs.
Q. What about empty running or part-loaded running?
A. When you run empty or nearly empty your fuel consumption declines. If you put in
your average fuel consumption for the vehicle, that should include full, empty and part-loaded running,
so should take account of this.
When you look at the cost per mile produced by the tables, this is the average figure you need to achieve
when you charge customers. If you run empty or part loaded, you will need to charge your customers a higher
rate so that your overall income averages the cost per mile figure shown in these tables.
To calculate how much extra you have to charge with empty running to achieve that average, you can use the following formula:
1+(percentage empty running divided by percentage full running) multiplied by the cost per mile given in the tables.
So, for example, if you run 30% empty, the calculation would be 1+(30÷70) = 1.428.
You then multiply the cost per mile figure from the cost tables by 1.428 to give you the amount you have to charge
your customers to achieve the average cost table figure.
Remember these are cost tables, not charge-out tables. It would be impossible to produce charge tables,
as charging is done in so many different ways. However it is done, it should average out so that you get
at least the amount per mile shown in the tables.
Q. On what are the automatically generated figures based?
A. To make life easier for you so you don’t have to fill in lots of figures when you start,
the system uses figures used in the quarterly Motor Transport cost tables. This means it is easy to get going –
but you can change all the figures later to reflect your exact costs.
These tables are compiled by John Phillips, former MT technical editor, and are based on information gathered by
him from truck manufacturers and other industry sources. These typical figures are as accurate as we can make them,
but the chances are your figures will be different. Always replace our figures with your actual figures.
For example, if the figure for the purchase price of a vehicle seems high, this is because it reflects the list
price of a truck rather than actual prices. There is a good chance that you will have got a discount but given
that the level of discounts varies all the time depending on market fluctuations, it is impossible for us to
estimate this.
Q. If you use the figures from Motor Transport, why are the results and figures different in the electronic version?
A. We have updated the way we calculate some of the figures. For example we allow in this
electronic version for residual values to be included in the calculation. We also set as standard a profit margin
of 5%, which is probably more realistic today than the 20% used in the printed cost tables – once again, you can
change this figure yourself. We have also changed the way overheads are allocated. In this system we allocate
central overheads equally between all vehicles in the fleet, while in the printed version we allocate a greater
proportion of overheads to larger vehicles.
You might also notice that the cost of the vehicle differs from the printed cost table. This is because we calculate
them slightly differently. So in the printed cost tables, the “vehicle cost" for tractors is made up of the cost of
the tractor plus trailer, both without tyres but including a fifth wheel on the tractor.
In these electronic tables the vehicle cost is the price of the vehicle with tyres and fifth wheel but without the
trailer. The trailer costs are treated separately. In the trailer section the trailer price includes tyres. This may
sound very strange but the printed cost tables are based on historical custom and are designed to make the depreciation
calculation easier. We have just tidied this up in the electronic version.
For the record, the prices are generally based on the list prices of the most popular vehicles in their classes.
They exclude VAT and include the most commonly specified engine and driveline, a passenger seat and spare wheel.
Q. The figure for depreciation does not seem to add up. Why?
A. It may not seem to add up but in fact it is correct. If you take the price of the truck
paid and divide it by the number of years you are keeping the truck, the result will not be the same as the
depreciation figure shown. This is because to work out the figure we take the cost of the tyres on the truck off
the vehicle price, and then divided by the number of years. We do this because tyres don’t last the life of a vehicle,
and their replacement period depends on how many miles you do. Therefore we account for tyres under running costs.
In the figures generated automatically by the system, we presume a straight-line depreciation with no residual
value. You can change it, however, to whatever you wish.
Q. I only have one truck. Can I use the cost tables?
A. Yes. Your fleet will comprise of just one vehicle and the vehicle cost figures and the fleet
cost figures will be the same. When you buy your next truck, just add that and you will see your total costs as well
as the individual vehicle costs.
Q. What happens when costs go up?
A. You should update the figures when costs rise. We cannot do this for you as we don’t know your costs.
Q. Can I quickly change the figures for all the fleet rather than going through and changing them for each vehicle?
A. If you have registered as a user, the figures will be saved every time you update them using the
update button in the boxes where you update the information. If you have entered as a guest, you need to register otherwise
all data will be wiped within 24 hours.
Q. How can I set fuel prices?
A. You can change the cost of fuel for every vehicle in the fleet from the page that shows all your fleet
vehicles. In the left-hand menu, under “Edit Fleet Values", choose “Change Fleet Fuel Prices".
If you have more than one fleet, you will need to change fuel prices for each fleet separately.
Q. How can I set overhead costs?
A. You can change the establishment (overhead) costs for every vehicle in the fleet from the page that
shows all your fleet vehicles. In the left-hand menu, under “Edit Fleet Values", choose “Change Fleet Establishment Costs".
Enter a figure for the overall overhead or establishment cost for the entire fleet. The establishment costs will be equally
divided among all the vehicles in the fleet – so for instance, if you have establishment costs of £400,000 and 40 vehicles
in the fleet, each vehicle’s annual establishment cost will be £10,000.
Q. How accurate are the calculations and how safe is my data?
A. We believe the calculations are accurate although the accuracy of the figures depends on the
information you have put in. The figures are, however, for guidance only. You should work out independently your own
figures before you rely on them. We can take no responsibility for errors in the system. You should not rely on them.
While we will make every effort to keep your data secure, we cannot guarantee security, neither can we guarantee that
the data will not be wiped or corrupted.
Q. How do I get out of the system?
A. Just click Log Out on the options menu.
Q. I have forgotten my password and/or user name. What do I do?
A. E-mail us using the e-mail address you gave when you registered and we will help you.