Return On Investment: Does It Matter, And How Much?

I have a friend who participates in a process known as “extreme couponing.” She has multiple subscriptions to the Sunday edition of our major newspaper, and a couple of local papers that also have coupon inserts. When I see her at the grocery store, she’s got two 4″ binders full of baseball card holders, all stuffed with multiples of clipped coupons, organized by store aisle. The insane amount of money saved is a big factor in her being able to be a stay-at-home mother, which is something else she’s pretty good at.

If you get stuck at step one…or even two…extreme couponing may not be for you!

Now, extreme couponing isn’t for everyone. Even beginners to the process can buy a year’s worth of paper towels for next to nothing. However, that may take up so much room in their house that they need to rent a storage facility for other belongings that folks like you and me simply keep in the garage or basement. It also takes a LOT of time and effort to do it right – as well as discipline. Saving half (or more) on a truckload of stuff you don’t need (or will never use) is a waste of money, time, and space. In fact, I know people who have abandoned extreme couponing for those very reasons…the “return on investment” just isn’t there.

That’s the deal in industry too.  Anyone tasked with finding and exploiting efficiencies – or finding and eliminating inefficiencies – is going to be looking at return on investment.  Like extreme couponing, though, it has to make sense in all aspects of the operation.  For example:

*An OEM taking advantage of a quantity discount for components or subassemblies has to not only have the storage space available, but also has to consider the turnover rate…it costs money to keep product on the shelf.

*A machine shop considering a tooling upgrade has to compare the cost difference with the increased performance and/or lifespan of the “new and improved” product.  A tool that costs 10% more but lasts twice as long is probably a good deal.  A tool that costs twice as much but lasts 10% longer might not provide the “bang for the buck.”

*Any facility, before switching a service or utility provider, will “run the numbers” on promotional rates, contract terms, etc. before making a commitment.

Unlike extreme couponing, EXAIR makes it easy – and beneficial – to evaluate the return on investment:

*Our catalog (if you don’t have the latest, get it here) has complete performance & operational data on all of our products.  This is great if you know what you want it to do.

*If you’re not quite sure, our catalog also has a good number of actual application write-ups for most of our Intelligent Compressed Air Products.  You may be able to find something that’s similar to what you want to do, and further inform your selection from there.

*Once you’ve chosen a product, you can use the Calculator Library on our website to determine actual dollar cost savings associated with replacing a current compressed air powered device with an EXAIR product.

*Application Engineers are available to discuss your application and/or product selection via phone, email, or Live Chat.

*No matter how detailed the discussion, and how confident a plan we may make, the age-old saying about how it “looked good on paper” proves itself every now and again.  When this happens, all catalog products are covered by our 30 Day Unconditional Guarantee.  If you’re not satisfied for any reason within 30 days of purchase, we’ll arrange return for full credit.

*Let’s assume that we’re pretty good at this (because we are) and it actually DOES work out (because it usually does) – we can calculate your new (and improved) operating costs and compare them with the cost of your previous devices.  If you don’t have the instrumentation (flow meters, sound level meters, etc.,) this is a free service we provide in our Efficiency Lab.  Send it in, and we’ll do a full performance test & issue a comprehensive report, all at no charge.  And if you qualify for a Case Study, we can even save you some money on your next order.  Contact me for more details if you’re interested.

Free testing. Verifiable data. EXAIR Efficiency Lab.

Russ Bowman
Application Engineer
EXAIR Corporation
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Coupon Pile Stock Photos courtesy of Carol Pyles  Creative Common License

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