Support & Consulting

ANALYSIS & COMPARISON

Comparative analysis like the one shown can help choose the right equipment for a particular application. 

Each case may be different. Total savings plus what your current solution is actually costing is an eye-opening exercise that may reveal what we call the "leaky bucket" in your current situation.

In this scenario we compared three different possible solutions. 

It is important to note that we tend to use very conservative scenarios when calculating a likely outcome. This takes into account market fluctuations.

With equipment that offers data, you can continue to check your ROI over time. 

Do you use a leaky bucket?

Imagine trying to fill a swimming pool with a leaky bucket. It would take forever and the loss of resources would be unthinkable. You would never do that right? 

Yet, many companies do exactly that. They inherit ways of dealing with trash & recycling that were established or just kind of "adopted" when they first started and continue that process years later. The fact is, they have no idea what that process is costing them. 

In the example below, we assisted one company who was spending $1,300 a month ($15,600 a year) getting rid of their cardboard scrap. They had no idea they were spending that and simply wrote it off as the cost of doing business. They had expensive equipment, but it was the wrong equipment and a poorly designed process that was labor intensive. When we asked how that process and equipment was chosen they used the worst sentence in the English language, "we have always done it that way."

Our analysis showed that they could turn that negative costs into a positive cash flow of $4,267 per month ($51,204 a year) with a change of equipment and process tweak and they could do that with a 23 month ROI. 

Tragically, many companies simply stay with old programs because they are familiar and because they have no idea what it is really costing them to be using that leaky bucket. 

REVENUE CURVES

 

Another metric may be your ROI over time and with a change in volume. In this example, it was discovered and illustrated that a particular type of horizontal baler became even more advantageous with higher volumes and time. 

This helps plan for further growth and scale up, but all while keeping your costs and return in view as you go. The red line indicates current volume levels.

Surprising in this analysis was how quickly the ROI occurred with the more expensive machine with the total pay off taking only 24 more months, but with a expected machine life of 20 years +, the benefits would last well after the machine was paid for. 

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Free and paid consulting available depending on the project and complexity of analysis. 

Contact Us

1409 Kuehner Drive, Box 117 • Simi Valley, CA 93063

Tel. (805) 501-5659

© 2020 by JJB. All rights reserved. Use fo any image or text is forbidden without prior written consent. 

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