Hyde Blades Cut Blade Operation Costs

Hyde blades can cut blade operation costs.

It’s not necessarily a mistake, but it’s something businesses do all the time and we recommend not doing it. We’re talking about when businesses compare prices of machine blades but they only look at the cost of the blade. 

Yes, you want to save money—we want you to save money too—but only looking at the acquisition cost might not do the trick. In fact, buying the cheaper blade may actually cost more money.

For example, let’s say there’s a car for $20,000. A car you’ll be lucky to drive for more than 100,000 miles, it will require frequent maintenance, and it guzzles gas.

Say there’s another car for sale. It has a price tag of $25,000. This car will last a lot longer than 100,000 miles, it won’t require much maintenance, and it gets great gas mileage.

What’s the better deal? 

For most, the better deal will be the more expensive car. You might spend more money up front, but you’ll save more money during the life of the vehicle. The same thing works for blades.

Before continuing, let’s define two terms: acquisition cost and operation cost.

Acquisition Cost – This is the actual price you pay for a blade. This price may include shipping charges.

Operation Cost – This is how much it costs to make one cut with a blade. Technically, it’s the total of how much the blade cost as well as all other associated costs. You take this total and divide it by the total number of parts cut.

Basically, acquisition cost only measures how much it costs to receive a box of blades from a supplier. Operation cost is a true measure of a blade’s worth, or better yet, a blade’s cost-effectiveness.

In the chart to the right, Hyde compares the operational costs of our blades with that of an imaginary competitor. 

The chart looks at five costs:

• Blade Cost
• Labor Cost
• Overhead Cost
• Total Cost Per Piece
• Total Job Cost

It’s interesting to note that the competitor’s blades are actually cheaper than the Hyde blades. Yet, Hyde blades are cheaper in every category except the first one, “Blade Cost.”  And there the difference is just $0.001.

Where Hyde begins to pull away is the “Overhead Cost.”  That part of the equation looks at things like “overhead cost per hour” and “hours to cut parts.”

Ultimately, the chart reveals that Hyde blades cut the fictional machine shop’s total blade operation cost by 13 percent.

Yes, the chart is just one example. Your business may save more, or it may save less, but it does reveal how a quality blade can actually be more cost effective than a cheaper one.

To do a real-life comparison, contact Hyde by clicking here. Order a batch of Hyde blades, put them to work, and see how much your blade operation costs decrease.