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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 = $15
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Machine Cost [$] |
= |
Break Even Point in Feet |
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|
Labor Savings [$/ft] |
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For Example,
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$58,155 |
= |
3,877 feet |
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$15 / ft |
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Using the next formula will indicate the break even point
in working days:
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Break even point in feet |
= |
Break Even Point in Days |
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Linear footage / day |
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For Example,
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3,877 ft |
= |
78 days |
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50 ft/day |
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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
$15 per foot.
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Lease cost per month |
= |
Break Even Point in Feet per Month |
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Labor Savings [$/ft] |
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For Example,
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$1,134 |
= |
76 ft/mo or 4 ft/day |
|
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$15 / ft |
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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 |
$75.00 |
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Machine Cost [$] |
= |
Break Even Point in Feet |
|
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Extra Profit [$] |
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For Example,
Using the next formula will indicate the break even point
in working months:
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Break even point [ft] |
= |
Payback time in months |
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Additional sales [ft/mo] |
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For Example,
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775 ft |
= |
7.75 months |
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100 ft/mo |
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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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