ROI - RETURN ON INVESTMENT

The analysis is made on the basis of the assumption that we carry out a work under normal conditions.
So, from our experience and individual client files recorded on the ground, we took as basis the following items in relation with a client that has allowed us to use its personnel an equipment.

BASIS

• Drill a sheet metal of 3/8"
• Use of 3/8" bit
• Numbers of holes to drill: 200
• Retailers costs of a 3/2" bit: Prototal (9.75$). Competitor ($7.50)
• Time of drilling: Prototal (30 seconds). Competitor (3 minutes - They need 3 stages to make this hole -
  1. Use a punch.
  2. To bore with a bit 1/4" and 3. Enlarging with a big 3/8").
• Average of cost for a man per hour (in union or not): $18 per hour

TEST

COMPETITOR:

• Time per man: 200 holes X 3 minutes = 600 minutes X $18/60 mn = $180
• Using bit costs: 200 holes / 40 holes/bit = 5 bits X $7.50 = $37.50
• Total costs for this job: $180+$130= $217.50

PROTOTAL:

• Time per man : 200 holes X 0.5 minutes = 100 minutes X $18/60mn = $30
• Using bit costs: 200 holes / 100 holes/bit = 2 bits X $9.75 = $19.50
• Total costs for this job: $30 + $19.50 = $49.50

RETURN ON YOUR INVESTMENT (ROI)

$217.50-$49.50= $168.00 (PROFIT)