How do you analyze technology's true costs?
Analyzing the true costs of any project is a huge undertaking and those companies who fail to consider all of the costs either lose profits or are forced to raise product price, losing their market price point. Production expenses are often the only costs looked at and not the overall true costs of designing and creating the tooling. But the reality is, you must also consider the long term costs of hiring full time professional engineers, designers and a team of expert toolers, as well as the cost of purchasing million dollar tooling machines, renting space and paying general maintenance fees.
It is important to realize that these additional expenses, only needed a couple of times a year, will eat into expected profits. Have you considered the salaries for professionals, the employee taxes (FICA, state taxes, unemployment taxes) or additional insurance on the employees, facilities, and equipment? Why pay for it all year long, when outsourcing to Marine Concepts offers you all of the benefits on an as needed basis?
Before your project begins, you will know exactly what your tooling portion of the project costs. In addition, tooling materials and waste can be costly. Waste often runs at least 2% of your material costs in tooling. True in-house costing is hard to track and often leads to undocumented and unforeseen expenses and therefore loss of profits.
Outsourcing will allow you to gain control of your costs and profits. Everyone, at one time or another, has a “lift”, pre-release, under catalyzation or some material defect. Discarding whatever was completed and starting over on a particular piece of tooling is very costly. By outsourcing, waste and unknown extra expenditures can be avoided and your tooling becomes a fixed cost. From solvents and rags, to employees, taxes and plant space, Marine Concepts will take responsibility for all the unknowns.
You will only have to consider your normal production expenses which includes labor, materials, labor overhead, manufacturing overhead and general administrative costs. You will have access to a team of engineers, designers and five CNC routers working 24/7. Outsourcing gives your company access to million dollar routers and the trained experts needed to run them.
Tooling is the primary focus of business for Marine Concepts. When outsourcing to Marine Concepts you will always know the answer to tooling costs and be able to account for it. Outsourcing some or all of your project will provide you with a true fixed cost. Profits are based on known and unknown expenses.
Invest in your product by hiring an experienced team for each of your projects so you only incur the cost when you need it.
Do you have questions? Contact us or call 239-283-0800.
Located in Cape Coral and Sarasota, Florida