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The Linde Iceberg Principle |
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All too often today's truck buyers tend to focus solely on
equipment acquisition cost. This cost is also referred to as
First Cost. To us at Linde, this cost represents the proverbial
"tip of the iceberg".
Countless studies conducted by equipment manufacturers have illustrated that
acquisition accounts for approximately 10%-15% of the total monies
spent on a piece of capital equipment over its economic life. Many of today's cost conscious material handling professionals are relying on
ever more sophisticated computer software to track the actual costs
associated with the operation of their truck fleets. This has enabled
them to fully
 quantify the impact of
First Cost vs. Real Cost,
the later constituting the remaining 85%-90% of
costs associated with the operation of their lift truck fleets.
What would be defined as
Real Costs? These costs can be separated into two categories.
The first would include the fixed costs of operation such as
operator wages, insurance and benefits These fixed costs typically
make up about 35%-40% of the total monies spent on a piece of
equipment. The second category would be the variable costs of
operation. These represent anywhere from 45%-55% of the total monetary
assets allocated
towards a specific truck or truck fleet. Variable
costs include maintenance, downtime, fuel and the cost of rental
equipment. These "real" variable costs should be the focus of the
truck owner/operator since a savings of 10%-20% or more in this area
will contribute far more to the bottom line of a balance sheet than a
similar percentage saved on acquisition cost.
Linde trucks
are designed and built specifically to reduce the variable costs
associated with truck ownership. The features, advantages and
benefits incorporated into the Linde products are easy to quantify and
very real. Let one of our representatives explain them to you today! |
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