As a business owner, you need to continually look for new ways to increase revenue, while reducing expenditures. Business 101, simple mathematic equations! Or is it? If Company A can sell me a can of rust remover for $10.00, and Company B for $13.00. It’s seems clear that if my goal is to save money by reducing my fixed cost, Company A is the obvious choice. True or False?
The correct answer is if A and B are the exact product, then obviously Company B is 30% higher in cost. But, if the products are not the exact same brand, you need to test them first. If you use twice the product from company A vs. Company B, then in reality, even though the unit cost is higher at the time of purchase, your net expense will be less because you will use less product in the long run. In addition, the cost of the product is pale in comparison to the cost of labor.
And if you’ve ever wrestled with a rusty bolt, you know first hand, the better the product, the quicker the job is complete. So the old phrase, “Time is Money”, is seldom explained by Company A. Take a lubricant like ROST-OFF, for example. Spending a little more up-front not only saves time in the end, it saves money. You simply use less and get more. It’s designed to get underneath rust or moisture, and contains an OMC2 additive which smoothes metal surfaces, getting you the best lubrication possible. While less expensive products contain solid lubricants, ROST-OFF will not separate in larger containers, and provides lasting protection against further corrosion.
Now more than ever, we consider time to be an inventory item. It’s all about the ability to offer the best service in a timely manner while keeping costs down. Providing your technicians with quality C-parts has many benefits. For more information on WURTH USA products or services, contact your sales rep or visit www.wurthusa.com.
