Cutting Into Your Profits - Why Standard Measurement Is So Important When It Comes To Industry

By Author: Rob Parker
Total Articles: 311
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Every business operates within a certain set of parameters, which, at the end of the day will add up to a profit or a loss. Many industries have several different factors that come into play that will determine the profit margin or loss deficit at the end of the fiscal year, and these can include the cost of labor, transportation and materials.

In this article, we are going to look at the cost of materials. More specifically, we will take a look at the cost of wires and tubing within various industries, and how it can affect the bottom line.

A penny saved...

Whether your business uses cut wire or tubing in a factory or out in the field, every cut stands to cost you money. Most of the time the cost of the material can be passed onto a customer, but this takes place according to a very set formula based on the standard length of the wire or tubing being used and the cost of the material by the foot, off the spool.

What this means is that every time a piece of wire or tubing is cut just one inch or so too long, a certain amount of cents are wasted. Let's say, for example, you use wire to hold loads ...
... together at a sawmill. The spool of wire costs $1000 for 100 feet (pretty low, but it's an easy number to work with). Each bundle requires a foot of wire to secure, and the cost of the wire is included in the cost of the lumber. As long as the cuts are perfect, the bottom line will not be affected. For every inch or even half inch off the mark, though, you start to lose money. Not only do those scraps add up fast, but you also end up with five feet of useless wire at the end; that's $50! The multiplication makes it even worse, and cuts that are too short will have an even greater effect.

Using standard, automatic wire cutters

With consistent cuts, you can be sure that your business is not losing money on materials. Human error will always occur, and the best way to ensure that your cuts are consistent is by using an automatic wire cutting system. Not only will the cuts needed for tubing or wiring be the same every time, but you will also save costs when it comes to labor double-checking. Automatic wire cutting means saving on the two major parts of profit reduction, waste and human error.