Summary: Mat users are concerned about price, cost of transport, and quality and longevity of mats. Creating a solution that works for you also creates a lower Total Cost of Ownership.
Conversations with our customers have shown that mat users are concerned about three things:
- Initial purchase price
- Cost of moving mats to and between jobs
- Quality and longevity of their purchased mats
Creating a solution to these three concerns also creates a lower Total Cost of Ownership (“TCO”) for you, the customer.
As the new guy on the block we need to be more responsive to you or we won’t win your business!
What’s also fun and interesting is that as a manufacturer we have very similar concerns as our customers do. We want:
- To build a well-designed, superior mat as efficiently as possible so we can price it right to our customers. And, we can price it right because we deliver straight to you with fewer intermediaries.
- To get as many mats per truck so that we can offer mats to a wider geographical area.
- To make sure our mat is long-lived, so our customers buy more of them.*
The Total Cost of Ownership (TCO) of a World Forest Group timber mat is less than the total cost of ownership of a mixed hardwood or southern red oak timber mat. You save significant money.
Your first savings will come in purchase price.
Your next set of savings will come in transport cost. Whenever you move our mat you are reducing the total cost of your mat.
For 18’ x 8” x 48” mats one truck is approximately 16-18 mixed hardwood mats vs. 22-23 eucalyptus mats.
The lifetime difference between mixed hardwood mats and eucalyptus mats can be as much as $60+/mat. You can download a spreadsheet here to do the calculations yourself.
Your final set of savings will come in longer life.
In other words, TCO is comprised of:
- Initial purchase price +
- Cost of initial transportation +
- Cost of transport of subsequent moves ÷
- Number of uses or life of mat.
So, if the purchase price is $500/mat and the initial transport cost is $30/mat and the total cost of transport of subsequent mats is $70 then the cost of the mat is:
$500 + $30 + $70 = $600/mat.
If you get three uses per mat, then total cost of ownership is $600/mat ÷three uses = $200/mat-use
If you get four uses per mat, then cost of ownership is $600/mat ÷four uses = $150/mat-use.
In later posts we’ll start at the beginning of our process and explore how design, material choice, standardized processes, quality control and a stable supply chain all contribute to lower Total Cost of Ownership.
*We recognize that eventually our customers may buy less of our mats because they last longer. But, we’ll have happy customers and that’s what we want. You’ll spread the good word to others.