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AfricAgric

Level 7 · Part 4

The cost of a trip, and who pays

Count every cost of a journey, including empty returns, and agree who bears losses.

Transport can be the largest cost between farm and market. If you do not count it properly, a sale that looks good may lose money.

Cost of one trip (invented numbers, only to show the method)
ItemAmount (invented units)
Vehicle hire or fuel60
Driver and helpers25
Fees and charges5
Expected losses on the way10
Total cost of the trip100
Units delivered50
Transport cost per unit2

Divide the total cost of the trip by the units that actually arrive in good condition, not the units loaded. If you can fill the vehicle and bring a return load, the cost per unit falls.

Agree who bears the risk

Before a trip, agree in writing who pays if goods are damaged, delayed or lost, and how it will be checked. Transport rules, permits and insurance depend on the country and the type of goods, so ask the transport authority and the buyers what applies to you.

Exercise 7.4 · The true cost of my trip

  1. Choose a trip you make or could make and list every cost, with your own figures from a recent trip or a quote.
  2. Divide by the units that arrive in good condition to find the transport cost per unit.
  3. Write two ways to lower the cost per unit: for example sharing, a return load or better packing.
  4. Compare the cost per unit with the price you receive, and write what you learn.

Background reading for this part:

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