Cost Savings: Simple Cost Reduction

Sometimes the simplest way to reduce spending for our customers is to get them a product that doesn’t cost as much – after all, everyone wants to shell out less cash. But it’s not just a numbers game of suggesting to our customers the cheapest product, because cheap can often mean low-quality and likely to fail.

The experts at ErieTec can take a look at your operations and identify places that there may be an alternative brand or style of a component that costs less – but isn’t of lower quality.

Success Story

Industry – Metal & Steel
Region – Northwestern PA
Cost savings – $1,933.84

Problem
The customer was spending a lot of replacing the outside amplifier for a ring sensor.

Solution
ErieTec suggested the customer switch to a sensor by a different manufacturer in a style that does not require the outside amplifier.

Savings Calculation
Original component price = $1,291.89
New solution price = $324.97
Price difference = $966.92 x 2 per year = $1,933.84