Would free tooling keep you in business?
Our last article about Chasing the Big Money got some conversations going.
We said that “the cost of your tooling is irrelevant compared to the cost of production”, and that your business will make significant financial savings by focusing on productivity.
There are some that would argue that this is just an excuse for Iscar Plus to sell high-priced tools and inserts, so we ask “would free tooling keep you in business?” Iscar Plus may not be the cheapest, but we are “defiantly” the most competitive. Especially when you consider the cost of using tooling.
Image you were to get your tools for free. Totally no charge. Would that be enough to keep you in business? Would it be enough to keep you globally competitive? When I say ‘globally competitive’, I mean, would it grant you enough of a cost reduction for you to be able to quote your customers at a price that would stop them seeking manufacturing in the next cheap labour-based country? Somehow I don’t think 3% is going to do it.
Yet more cutting tool suppliers in New Zealand seem to be heading towards offering cheaper tooling brands. I don’t know if this is driven by the customer or by the feeling that they are missing out.
At Iscar Plus we know this. About 80% of what New Zealand machine shops produce gets exported one way or another, so our future is linked to yours. If you are doing well then there is a good chance we will also.
So that is our mission. To raise your margins so the boards of directors that make the decision to move manufacturing to China, Thailand, or Mexico have no reason to do so.
Here’s how we do it. We concentrate on the cost of production. By using our knowledge base and competitive tool choices, we can reduce the cost of production for you, and start a culture of improvement that allows you to compete at much more profitable levels.
The graph displays the effect over time. A small 3% saving (year on year) of the cost of production produces a 15% saving in 5 years’ time, and a 25% saving after 10 years. This is how effective Iscar Plus is as reducing your production overheads, without compromising on the quality of tooling we supply.
So would free tooling keep your business competitive? The answer is no.
Chasing the ‘Small Money’ is only going to earn you small money. When you start thinking in terms of the ‘Big Money’, that’s when significant savings are made.
Find out now how a partnership with Iscar Plus can lift your business’s productivity.