Pre Spray Cost Comparison Research

One of my main focus of the last three years with our business has been to simplify the van operations.  For two main reasons, one, lower cost of chems, and two, simplify training our cleaning procedures.  I want to focus on one in particular.  As most of you are aware, our company is an avid Soils and Oils user.  We use this product on 80% of our job sites.  You may ask how can you lower cost in this area.  I will share the journey.

First and fore most, the product has to perform.  I took three months and ordered S/O by the case and did my own evaluation.  Which, you all should do, dont take the words of online mystery people, it may all be hype.  Research being done, approved by me, next step.  Cost evaluation, how much is a gallon of concentrate?  For us the product we were using cost $38 a gallon plus shipping so that puts us at $48 a gallon shipped.  S/O is $24 a gallon plus shipping so that puts it to $34 a gallon shipped.  At first glance, I can save $14 just in cost per gallon.  There is more.....Here are the numbers...

The Pre spray we were using cost $48 per gallon.  We use on average 3/4 of a HF per job site.  At the rate of 32 oz per HF, thats a cost of

.40 an ounce so it cost $12.80 to fill the HF metered at 1/8, we use 3/4 on each job.  That makes and average cost of $9.80.  Not bad considering you'll make much more than that.  


Now the switch.  I wont go into all the positive reason for our change, lets focus on the numbers.  I have determined that the cost of S/O is $34 a gallon shipped.  But, thats not our price.  First drop in price comes from the 55 gallon drum order.  Here are the advantages.

1. More is less, price per gallon goes to $21.99 a gallon flat
   

1. Free shipping
   

1. We have earned distributor pricing for our buying power that brings the CPG to $20.24
   

Now our CPG is at $20.24, .16 an oz.  Which yields a cost of $5.12 to fill the HF at 32 oz per HF metered at 1/8.  That makes the average cost per job, 3/4 HF, at $3.84.  Now we are making a real difference.  Lets run some real life numbers.


Lets say we do 800 jobs a year.  Out of those 800, 80% we use our old more expensive general PS at $9.80 per job.  That 640 jobs at $9.80 cost of product used.  The annual PS cost will be $6,272.  Not bad of a return on goods serviced.  Now lets look at the switch.

Our switch to S/O was not cost bias only.  We looked at cost, performance, versatility, was it a safe product we want around our employee and customers, and a few others.  S/O is a great product that can stand side by side to any industry general PS and match or surpass performs.  I know from experience, you should find out for yourself too.  Ok, to the numbers.

800 jobs a year, 80% of which we use S/O at a cost of $3.84. So, 640 jobs at $3.84 cost of product used.  The annual PS cost will be $2,457.  Thats a difference of $3,815.  That is just a little over half the cost of PS used in a year with our other product.  Best of all, we gained more from the switch than we did lose.  As a matter of fact the only thing lost was the d-lime that was in the PS and now we dont even use it.  Safer and better for us all.  

Just thought I would share what I have been so long researching and now have finally got the numbers to prove our findings.  

One last thing, we could have even more savings if we would adjust the rate from 20 oz/HF.  For us, we went with 32 oz, because its easier to train one number and keep consistent.

Great bit of research there!

I have never crunched the numbers like that, but it is good to know that I might be doing something right. I run a HF at 20 oz plus 8 oz of S/O/E on most jobs and will go through a little over half a jug on most jobs metered at 8-to-1.

I really like what that S/O/E can do in the mix...especially when scrubbing with a crb or rotary extractor. I don't know what that saves me in your calculations, but it sure works well.

Thanks for sharing the numbers, it makes one think about those costs.  

This is the way I did my number crunching.

Product A) $35 per gallon
Product B) $20 per gallon

Same dilution, same performance,

Conclusion, product B will save me money.

Andy Mc wrote:This is the way I did my number crunching.    

Product A)   $35  per gallon
Product B)     $20   per gallon

Same dilution, same performance,

Conclusion,   product B  will save me money.

Knowing that you saved isn't enough for me. I want to know how much. Also helps to budget every year.

Do you scrub the s/o, or just extract on most jobs?

ACpower1 wrote:Do you scrub the s/o,   or just extract on most jobs?      

Scrub or allow rotary extractor to provide the agitation for me.

I scrub where/when needed with S/O.

I just extract mostly. If needed, I'll run the 360

Oh yes, S/O is cost effective, if you buy it by the drum.