As previously mentioned direct cost's are those that relate to a lorry or trailer whether it moves or not. But it is important to realise that if you have artic's on your fleet each unit must have a trailer or trailler's allocated to it. If you have 20 units but forty trailers then each unit has to support the standing cost's of 2 trailer's. Each trailer needs to be costed in much the same way as a lorry but the cost's are fewer. Trailer cost's are test fee's, depreciation. All other trailer cost's go in the rolling category.

ROLLING COST'S

These are obviously diesel, lubricants, drivers bonus, tyres, and maintenance. Diesel is easy, just divide the mpg by the price per gallon= pence per mile. drivers bonus will depend how or if you pay driver bonus. Tyres should be deducted from the start price (for depreciation purpose's) of your lorry when you purchase it but remember to only deduct the replacement cost. then calculate the life of of your tyres. (remember to include trailer tyres) then divide the cost by the mileage life. eg: tyres on 6x2 artic with tri-axle trailer

14 tyres cost say £4000.00

tyre life 80000 miles

4000 -:- 80000 = .05 = 5p per mile.

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