Cost per Kilometer (CPK) of Your Tires Explained
Are you looking for ways to reduce your operating costs and increase your profits in your truck business? If so, you might want to pay more attention to your tires. Tires are one of the most expensive and essential components of your vehicles, and they can have a significant impact on your bottom line.
CPK is a measure of how much you spend on tires for every kilometer that your truck travels. It is calculated by dividing the total cost of the tires by the total distance that they cover before they need to be replaced. For example, if you buy a set of tires for ₱50,000 and they last for 100,000 kilometers, then your CPK is ₱0.50.
CPK is important for your truck business because it helps you to optimize your tire usage and budget. By knowing your CPK, you can compare different types of tires and choose the ones that offer the best value and performance for your needs. You can also monitor your tire wear and plan ahead for when you need to replace them. This way, you can avoid unexpected breakdowns and delays that can affect your service quality and customer satisfaction.
To calculate your CPK, you need to keep track of the following information:
- The purchase price of each tire
- The date of installation and removal of each tire
- The odometer reading at the time of installation and removal of each tire
- The number of tires used per axle
You can use a spreadsheet or a software program to record and calculate these data. Alternatively, you can use a simple formula to estimate your CPK based on the average lifespan and price of your tires. For example, if you use tires that cost ₱10,000 each and last for 20,000 kilometers on average, then your CPK is ₱10,000 / 20,000 = ₱0.50.
However, keep in mind that this formula does not account for variations in tire wear due to factors such as road conditions, driving habits, load weight, tire pressure, and alignment. Therefore, it is advisable to use actual data from your own experience to get a more accurate CPK.
By understanding and calculating your CPK, you can make better decisions for your truck business and save money on tires in the long run.