All too often, buyers forget to include the opportunity costs of machine downtime, training, or other productivity losses.

Have you considered all of the costs involved with purchasing a hairpin bender?

"When choosing among alternatives in a purchasing decision, buyers should look not just at an item's short-term price, which is its purchase price, but also at its long-term price, which is its total cost of ownership. The item with the lower total cost of ownership will be the better value in the long run."
- Investopedia

All too often, buyers forget to include the opportunity costs of machine downtime, training, or other productivity losses.

Have you considered all of the costs involved with purchasing a hairpin bender?

We have, and below, we outline our findings from years of experience and supporting data.

 

Explicit Costs

Explicit costs are business expenses that are easily identified and accounted for. Explicit costs represent clear, obvious cash outflows from a business that reduce its bottom-line profitability. An example of explicit costs would be items such as wage expenses, rent or lease costs, and the cost of materials that go into the production of goods. With these examples, it is easy to see the source of the cash outflow and the business activities to which the expense is attributed.

  • Base Machine Cost (Hairpin Bender)

    The purchase price of the hairpin bender.

  • Operator Costs (Hairpin Bender

    The personnel costs, including wages and benefits, associated with operating the hairpin bender.
    Note that two OAK Triumph benders can out-produce three competitor machines, consequently reducing operator costs.

  • Maintenance Costs (Hairpin Bender)

    The costs to repair and maintain the hairpin bender.
    Due to high efficiency, two OAK Triumph benders can out-produce three competitor machines, resulting in one fewer machine to maintain, along with a corresponding reduction in costs.

  • Perishable Tooling Costs (Hairpin Bender)

    The costs to replace necessary tooling used during production.
    The Triumph was designed to reduce consumption of perishable tooling such as straightening rollers, which were eliminated on the Triumph. Additionally, two Triumph benders can out-produce three competitor machines, which results in immediate savings on spare parts.

Implicit Costs

Implicit costs (also called implied, imputed or notional costs) are the opportunity costs not reflected in cash outflow but implied by the failure of the firm to allocate its existing (owned) resources, or factors of production to the best alternative use. For example: a manufacturer has previously purchased 1000 tons of steel and the machinery to produce a widget. The implicit part of the opportunity cost of producing the widget is the revenue lost by not selling the steel and not renting out the machinery instead of using them for production.

  • Downtime Costs (Hairpin Length Changeover)

    The costs associated with lost machine production time due to changing hairpin leg lengths. This lost time is considered a cost and is quantifiable based on time and overhead rates.

  • Downtime Costs (Hairpin Tooling Changeover)

    The costs associated with lost machine production time due to changing tube diameter tooling or replacing perishable parts. This lost time is considered a cost and is quantifiable based on time and overhead rates.

  • Floor Space Cost Avoidance

    The cost per square meter or foot of your facility's floor space over one year.
    When considering alternative options, a smaller machine occupies a reduced footprint that may clear floor space to be used for other high-value activities.


When all costs are considered, Burr Oak Tool's Triumph hairpin bender has proven to have the LOWEST total cost of ownership of any hairpin bender on the market.


Triumph Cost Calculator

This calculator is designed to allow you to determine your cost per hairpin produced based on some important production inputs. By entering details about your production environment, schedule, and workload, you can compare the cost per hairpin produced by Burr Oak Tool's Triumph hairpin bender to that of two competing hairpin benders.

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