Wyvern Cargo has doubled its pre-tax profits and puts its success down to it being able to pass the cost of fuel increases onto its customers. According to chairman John Probert, customers don’t like it, but pay up.
Wyvern is not alone. An increasing number of operators are charging the extra cost of fuel on to its customers. They have to. If they don’t they will go bust.
Many in the industry argue that they can’t pass on the price because their customer cannot afford it .The argument goes that if they have to pay more their customer will go bust and leave the operator with no work.
But this argument gets us nowhere. The fact is that if you have sharply rising costs caused by factors outside your control, you have to pass them onto the customer. And your customer has to pass them on in turn.
That is why food prices are soaring, partly because of shortages and partly because of increased fuel costs in moving goods.
The good thing is that everyone knows fuel prices are soaring; people know that a litre of fuel now costs more than a pound. So your customers are not going to be surprised if you want to charge them more.
What is certain is if you don’t put up prices to reflect your increased costs, you will not be in business for much longer. It is not easy but since when has the haulage business been an easy option?
Frankly you will do better putting up your prices than protesting against the Government, however much better than may make you feel.

Information on fuel prices from the FTA