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Can you afford the STAR "V" Groover?

There are various ways to justify the cost or amortize the acquisition of a STAR V-Groover. On the next few pages we will illustrate three of those ways based on our 2-head "SLG-2LB" model, which currently sells for $58,155.

Depending on your actual labor cost figure, retail selling price per foot, the labor savings per foot and how accurately you can allocate your cost to specific production steps, this will impact whether the STAR V-Groover will pay for itself in more or less time than what we have outlined here. It will be obvious, the more you utilize the machine the faster it pays for itself and generates additional profit for your company.

Talking to our customers and taking industry figures into consideration, from the entire spectrum of countertops, from simple countertops to custom installations, we will use the following figures for the cost justification.

  • Average labor cost per foot. $36
  • Average labor cost savings for front build-up edge 33%. $12
  • Average labor cost savings for cove back splash profile .50%. $18
  • Average selling price per foot of countertop. $110
  • Average material cost per foot of countertop. $35

The following simplified formula can be used to determine how many linear feet of solid surface material needs to be processed on the STAR V-Groover before the machine pays for itself. Average savings $12 + $18 / 2 = $15

Machine Cost [$]
 =  Break Even Point in Feet

Labor Savings [$/ft]

For Example,

$58,155
 =  3,877 feet

$15 / ft

Using the next formula will indicate the break even point in working days:

Break even point in feet
 =  Break Even Point in Days

Linear footage / day

For Example,

3,877 ft
 =  78 days

50 ft/day

Leasing the STAR V-Groover. The lease rate for the Star "V" model SLG-2LB, currently priced at $58,155 with good credit for a 60 month term with 10% buy-out option will be = $1,134 per month.

Using the following formula will indicate the minimum linear footage per month, at a mixed labor savings rate of $15 per foot.


Lease cost per month
 =  Break Even Point in Feet per Month

Labor Savings [$/ft]

For Example,

$1,134
 =  76 ft/mo or 4 ft/day

$15 / ft

Even if the $15 labor savings might seem high to you, it is obvious that as long as you can produce 300 feet of countertops per month (= $3.78 labor savings per foot [$1,134 / 300 ft = $3.78]), you can surely pay for the machine simply through the labor savings.

In essence the Star V-Groover is free!


Increased Sales Volume. Even if you cannot pinpoint labor savings exactly or come up with a particular dollar figure per foot, you can use the additional profit formula to cost justify the STAR V-Groover.

Since the labor savings will most likely be channeled into additional products with the same man-hour cost, we can use this formula for the pay back.

Selling price/foot. $110.00
Minus material cost/foot ($35.00)
Labor cost/foot 0 - since we have the same man-hour cost
Extra profit generated/foot $75.00

Machine Cost [$]
 =  Break Even Point in Feet

Extra Profit [$]

For Example,

$58,155
 =  775 feet

$75

Using the next formula will indicate the break even point in working months:

Break even point [ft]
 =  Payback time in months

Additional sales [ft/mo]

For Example,

775 ft
 =  7.75 months

100 ft/mo

One of these formulas might work for you. But don't believe us! Talk to our customers and hear first hand what savings they achieved or extra profits they have generated!
The sooner you decide, the sooner you can start saving and generating extra profit!


Save 30-65% on production cost

Instead of cutting one or more solid surface strips, laying them up horizontally or vertically, aligning and gluing them to the front edge, then route and sand the front edge, you just run the part through the Star V Groover in a matter of one or two minutes and the part is ready to glue and fold with no sanding required. The process is the same for the cove back splash profile which is being produced in one pass through the Star V Groover. Only flush sanding of the seams is required. No need to purchase a cove insert strip (which might not match in color) or produce one in-house by cutting the inlay strip, pre-shaping it, glue it in , route and sand the cove shape in a time consuming and tiring process.

Save 40-60% on seam compound

Even though the glue surface area on a 45° angle is actually greater, it will require less glue since the tape acting as a hinge will help distribute the glue more evenly and allow any squeeze out only on one side.

Save 30-60% on sanding time

Since miter-folded surfaces are finished surfaces only touch up sanding is required with the exception of the flush sanding for the cove back slash profile.

Avoid production bottlenecks

With the elimination of several production steps extra capacity on the panel saw is freed up and extra man hours are gained which can be utilized in production bottleneck areas such as finish sanding and installation and to shorten response time for customer orders.

Enhance appearance

Since miter-folded surfaces are made from the same sheet the color match will be perfect. A 45° angle seam will be hardly visible when shaped to a , bull nose profile versus a horizontal seam, which is likely to be more apparent.

Provide positive cash flow

Lease the Star V-Groover and off-set the monthly payments through savings on man hours and increased production. Shortened production time will also enable your company to bid on the big commercial jobs.

Stay competitive

If your competitors are using the V-Grooving production method it will be harder to compete with them and acquire enough business or business at the right price to remain profitable.

Save furthermore on

Through the elimination of several production steps when V-Grooving less tooling and clamps are needed. It will also free up valuable space.


 

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