Quality adjustments Nace 49.41, Freight transport by road

1. QualityadjustmentsNace 49.41, Freight transport by road

2. Background • Lack ofknowledgeabouthowtoadjustqualitychangesexplicitlywithinthisindustry. • No abilitytoSimple overlap, no overlapperiod. • Linkedto show no pricechange has beenused as an alternative, risk ofdownward bias over time.

3. Background, continuation • An investigation of quality adjustment methods for Nace 49.41 was made in 2013. Findings Prices are influenced mainly by the costs and the industry is characterized by tough competition and low profit margins. • Production cost adjustment is thus considered as the most appropriate method.

4. Production cost for freighttransport by road Great impact on the cost (price) • Fuel consumption & price • Distance • Expenditure of time • Hourly costs for staff Small influence on the cost (price) • Load amount • Customer segments • Purchasing volume (customers) Rate Costs • Surcharge for administration (30 % of personnel costs) • Surcharge for vehicle costs (30 % of the fuel costs)

5. Howtoadjust Calculating the new base period price Model: There:= The new (adjusted) base period price = The previousbase period price = Production costs during the current quarter =Production costs during the previous quarter

6. Example: specifications off the costs (Rate costs not need to be taken into the account because these are proportional to the fuel- and personnel costs and therefore does not affect the size of the cost ratio)

7. Example: Calculating the new base period price New (adjusted) base period price (Per transport): There:= The new (adjusted) base period price = The previousbase period price (4 600 sek) = Production costs during the current quarter =Production costs during the previous quarter

8. Example: Index calculation (Price for the new service) = 5 800 sek. (Price for the previous service) = 5 000 sek. (New base period price, per transport;) (The previousbase period price; 4 600 sek) Index numberfor the current quarter. Index numberfor the previousquarter.

9. Arisen problems/deficiencies • No access or lack of information on the price-relevant variables for the old and the new service offering from several respondents. • Respondents contact/burden. • Industry knowledge.