Presentation Harrisburg
-
Upload
bill-hitchcock -
Category
Documents
-
view
122 -
download
1
Transcript of Presentation Harrisburg
![Page 1: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/1.jpg)
LIFE CYCLE LIFE CYCLE COSTINGCOSTING
Harrisburg10/1/08
![Page 2: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/2.jpg)
AgendaAgenda Welcome / Introductions Tom
Kirchhoff Cleveland Brothers Jack Pajan What is Life Cycle Costing? Jack Pajan Custom Support Agreements Daren
Ashurst LCC Example Bill Hitchcock LCC Calculator Bill Hitchcock Lunch
![Page 3: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/3.jpg)
Landscape Contracting Company Founded in 1937 by Bob and Roy Cleveland
Established Caterpillar Dealership in Central Pennsylvania in 1948
Acquired HO Penn in 1965 Companies split in 1968,
Roy’s family became sole owners of Cleveland Brothers
1980 – Jay Cleveland Sr. and Bill Kirchhoff assume control
2001 – Jay Jr. and Tom Kirchhoff assume control
Acquired Beckwith Machinery and One Call Rentals in 2005
Company HistoryCompany History
![Page 4: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/4.jpg)
Cleveland Brothers operates its business through four primary divisions:
Construction Equipment – large construction, general construction, mining, industrial equipment, and product support
One Call Rentals – compact construction and other smaller equipment
Power Systems – truck engines, generator sets, chillers and other power systems equipment and industrial engines
CB Con Agg – crushing and screening products for the aggregate and construction industries
OperationsOperations
![Page 5: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/5.jpg)
Branch Locations/TerritoryBranch Locations/Territory
![Page 6: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/6.jpg)
Total CapabilitiesTotal CapabilitiesCleveland BrothersCleveland Brothers
Total Employees ………1292Total Employees ………1292 14401440 Servicemen …………… 586Servicemen …………… 586 707 707
Service Trucks ………… 184Service Trucks ………… 184 242 242 Total Number of Facilities Total Number of Facilities 27 27
Since October 7, 2005Since October 7, 2005 August 2008August 2008
![Page 7: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/7.jpg)
LIFE CYCLE LIFE CYCLE COSTINGCOSTING
Harrisburg10/01/08
![Page 8: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/8.jpg)
![Page 9: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/9.jpg)
What Is COSTARS?What Is COSTARS? COSTARS is a new approach to the
State Cooperative Purchasing Program COSTARS encourages a partnership
between Local Public Procurement Units and The Commonwealth
![Page 10: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/10.jpg)
DGS/COSTARSDGS/COSTARS DGS requires Local Public Procurement
Units to register as COSTAR members. The CONTRACTOR agrees to sell items
under this contract to DGS-registered COSTAR members.
The CONTRACTOR is not permitted to use the contract to sell to non-COSTAR members.
![Page 11: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/11.jpg)
Cleveland Brothers Equipment Company is Proud to be a COSTARS Supplier
![Page 12: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/12.jpg)
STATE/PIGGYBACK CONTRACTSSTATE/PIGGYBACK CONTRACTS 2420-02 DGS All CAT equipment 2540-04 PennDot Graders/Wheel
Loaders and BHL 2540-06 PennDot Asphalt Rollers_____________________________________
NATIONAL NJPA National Joint Purchasing
Alliance
![Page 13: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/13.jpg)
Government Buying Government Buying Challenges:Challenges:
Meet Community/State/Federal needs and Government rules
Make the best use of taxpayer dollars
Maximize Value to your Community
![Page 14: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/14.jpg)
Governmental Acquisition Governmental Acquisition MethodsMethods State Contract / Piggybacking RFP/RFQ Criteria Based Bid Leasing Rental / Purchase Low Bid Meeting Specification
![Page 15: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/15.jpg)
Low Bid ShortcomingsLow Bid Shortcomings Promotes creative SPEC writing Decision based on only 20% of Total
Cost Award based on text, not iron Taxpayer’s $$ invested in low VALUE Unfair to both Taxpayer & Suppliers
![Page 16: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/16.jpg)
Consumable Goods v. Consumable Goods v. Capital GoodsCapital Goods Consumable: Something used up in
the production process Capital: Not used up (durable); used
to make other things that are of value
![Page 17: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/17.jpg)
Here’s the Point:Here’s the Point:
You CANNOT determine the VALUEVALUE of Capital Goods by using the PRICEPRICE!
![Page 18: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/18.jpg)
The The VALUEVALUE of Capital of Capital GoodsGoodsTotal Cost Over the Productive Life
(Life Cycle Cost)
![Page 19: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/19.jpg)
There’s a better way to get the There’s a better way to get the most reliable equipment at the most reliable equipment at the lowest total cost!lowest total cost!
LIFE CYCLE COSTING
![Page 20: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/20.jpg)
Life Cycle Costing is not NewLife Cycle Costing is not New Endorsed by several governmental
associations:– NIGP – National Institute of Governmental
Purchasing.– NASPO – National Association of State
Procurement Officials.– NAFA – National Association of Fleet
Administrators.– ABA – American Bar Association (Model
Procurement Code).
![Page 21: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/21.jpg)
“Life Cycle Costing is a form of Value Analysis that establishes the best value
over the life cycle”.NIGP Specification Writing, 2nd Ed
What is Life Cycle Costing?
![Page 22: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/22.jpg)
“Life Cycle Costing is a type of price/performance evaluation. It involves a broad-based evaluation of operating, maintenance, financing, other ownership and usage costs, and resale or residual value in addition to acquisition price in making a contract award”. NASPO, State & Local Gov’t Purchasing Principles & Practices, 2001
![Page 23: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/23.jpg)
““Life Cycle Costing is a Life Cycle Costing is a mathematical model to assist mathematical model to assist fleet managers in making fleet managers in making financial decisions by financial decisions by considering considering ALLALL vehicle or vehicle or activity costs over the course activity costs over the course of its life.”of its life.”
Christopher D. Amos, CAFMCommissioner of Equipment, City of St. LouisNAFA Senior Vice President
![Page 24: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/24.jpg)
Life Cycle CostLife Cycle CostSelling PriceSelling Price- Trade In Value- Trade In Value- Buyback - Buyback
+ Extended Warranty+ Extended Warranty+ Fuel+ Fuel+ Sched. + Sched.
MaintenanceMaintenance+ Repairs+ Repairs= Life Cycle Cost= Life Cycle Cost
+Total +Total Maintenance & Maintenance & Repairs (TM&R)Repairs (TM&R)
![Page 25: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/25.jpg)
NINE MAJOR BENEFITSNINE MAJOR BENEFITS1. Measuring machine quality2. More accurate budgeting3. Insurance policy4. Protects against rapid depreciation or low
resale value5. Guarantees the cost of routine maintenance6. Assures dealer commitment to availability
of parts and service7. Helps agencies buy best machine for the job8. Protects taxpayer dollars by ensuring true
lowest cost
![Page 26: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/26.jpg)
Who uses it?Who uses it? 44 of 50 (88%) US states specifically
allow awards based on Life Cycle Costing
Other 6 don’t specify but some known to practice it: Alabama, Michigan. Missouri, South Dakota, West Virginia, Wyoming
![Page 27: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/27.jpg)
AdvantagesAdvantages Eliminates most risks of machine ownership Eliminates the hassle of unexpected repairs
or unforseen downtime. Easier to Budget Protection against a dealer who doesn’t
stand behind what they sell Gets the most value for the money for your
taxpayers
![Page 28: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/28.jpg)
AdvantagesAdvantages Better purchases, better equipment,
more productivity Peace of mind knowing that you’ve
utilized your budget wisely and have made the best equipment choice at the lowest total cost
![Page 29: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/29.jpg)
You control the Process:You control the Process: You establish the performance
requirements You finalize machine/attachment
needs You determine your maintenance role You control options/specs
![Page 30: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/30.jpg)
Life Cycle Costing clarifies the Life Cycle Costing clarifies the process:process:
Designed to attract qualified suppliers Gives all suppliers and equal opportunity May eliminate those lacking confidence Enables you to accomplish more with less
![Page 31: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/31.jpg)
Potential Bonus!Potential Bonus! You know the minimum repurchase
value You have a floor with a guaranteed
buyback price You can sell at a higher price Your budget benefits from any higher
differential
![Page 32: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/32.jpg)
Questions?Questions?
![Page 33: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/33.jpg)
Customer Support Customer Support AgreementsAgreements
![Page 34: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/34.jpg)
What are CSAs?What are CSAs?
Customer Support Agreements: A CSA is any agreement between a Dealer & Customer, for the Dealer to meet some or all of the Customer’s Equipment Management needs.
Agreements
Powertrain
![Page 35: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/35.jpg)
TM&R, Total Maintenance & Repair covers the majority of the machine for contract service.
PCRP, Powertrain Component Repair Program covers the major PT components “only” for “out of chassis, major failures”.
PCLP, Powertrain Component Life Program provides for replacement PT components at a prorated price based on an established life cycle.
IOP, Inspection Only Program provides comprehensive machine condition monitoring / reporting on a scheduled basis.
PM (TLC or Monitor Service), Preventative Maintenance provides scheduled machine fluid & filter replacements at CAT recommended intervals.
All CSA program terms and conditions are flexible to meet any customer’s needs. Billing arrangements are generally “cost per hour” based on individual machine operation.
![Page 36: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/36.jpg)
TM&R – Breakdown of ExpenseTM&R – Breakdown of Expense
![Page 37: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/37.jpg)
What does a Total Maintenance & Repair (TMR) contract provide for:
All in-chassis or out of chassis repairs to the machine (i.e.; turbo charger, final drive, water pump, transmission, drive shaft, hydraulic cylinder, etc.)
All associated travel time & mileage charges (to and from your site) All contract hauling charges (if an engine needs repaired in our facility) All inspection & adjustments to the powertrain to stay in compliance with
Caterpillar Warranty Requirements, (i.e.; engine valve lash or unit injector adjustments)
All S.O.S. (Scheduled Oil Sample) analysis and follow up (24/7) All report writing, record keeping and distribution to your contacts
![Page 38: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/38.jpg)
CSA CSA CoordinatorCoordinator
Assigned to your specific machineAssigned to your specific machine
Machine Machine Condition Condition
ReportReport
![Page 39: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/39.jpg)
Field ServiceField ServiceTechnicianTechnician
Dispatched for CSA machine service & repairsDispatched for CSA machine service & repairs
Diagnostic Diagnostic Inspection Inspection
ReportReportPage OnePage One
![Page 40: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/40.jpg)
Field ServiceField ServiceTechnicianTechnician
Dispatched for CSA machine service & repairsDispatched for CSA machine service & repairs
Diagnostic Diagnostic Inspection Inspection
ReportReportPage TwoPage Two
![Page 41: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/41.jpg)
PM (TLC)PM (TLC)TechnicianTechnician
Expert in your machine’s PM needsExpert in your machine’s PM needs
Preventative Preventative MaintenanceMaintenance
ReportReport
![Page 42: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/42.jpg)
![Page 43: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/43.jpg)
![Page 44: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/44.jpg)
CSAs In Other IndustriesCSAs In Other Industries Xerox
![Page 45: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/45.jpg)
CSAs In Other IndustriesCSAs In Other Industries IBM
![Page 46: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/46.jpg)
CSAs In Other IndustriesCSAs In Other Industries Airbus
![Page 47: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/47.jpg)
CSAs – Value Added Service CSAs – Value Added Service SolutionsSolutions Caterpillar
![Page 48: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/48.jpg)
CSAs – Measured growth in CSAs – Measured growth in contracts in past 18 to 24 contracts in past 18 to 24 months:months:
Number of CSA contracts in 2006 equaled 718 Number of CSA contracts through 2008 equals 814
Our industry, and current customers are affirming that CSAs and “fixing costs” make good business sense!
13% Growth!
![Page 49: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/49.jpg)
Using Life Cycle Using Life Cycle CostingCostingBill Hitchcock
![Page 50: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/50.jpg)
2.5
1.7
1.5
1.5
0.8
0.7
0.5
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Productivity
Availability
Operating Costs
Utilization
Resale Value
Interest Rate
Selling Price
Percent Change
The Seven Factors AffectingThe Seven Factors Affecting Bottom LineBottom Line
![Page 51: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/51.jpg)
2.5
1.7
1.5
1.5
0.8
0.7
0.5
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Productivity
Availability
Operating Costs
Utilization
Resale Value
Interest Rate
Selling Price
Percent Change
The Seven Factors AffectingThe Seven Factors Affecting Bottom Line Cost/HrBottom Line Cost/Hr
![Page 52: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/52.jpg)
2.5
1.7
1.5
1.5
0.8
0.7
0.5
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Productivity
Availability
Operating Costs
Utilization
Resale Value
Interest Rate
Selling Price
Percent Change
The Seven Factors AffectingThe Seven Factors Affecting Bottom Line ROIBottom Line ROI
![Page 53: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/53.jpg)
2.5
1.7
1.5
1.5
0.8
0.7
0.5
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Productivity
Availability
Operating Costs
Utilization
Resale Value
Interest Rate
Selling Price
Percent Change
The Seven Factors AffectingThe Seven Factors Affecting Bottom Line CostBottom Line Cost
![Page 54: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/54.jpg)
Life Cycle Costing Life Cycle Costing ExampleExample
![Page 55: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/55.jpg)
Life Cycle CostLife Cycle CostSelling PriceSelling Price- Trade In Value- Trade In Value- Buyback- Buyback- Extended Warranty- Extended Warranty+ Fuel+ Fuel+ Sched. + Sched.
MaintenanceMaintenance+ Repairs+ Repairs= Life Cycle Cost= Life Cycle Cost
+Total +Total Maintenance & Maintenance & Repairs (TM&R)Repairs (TM&R)
![Page 56: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/56.jpg)
Caterpillar Caterpillar 120M AWD120M AWDMotor Motor GraderGrader
![Page 57: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/57.jpg)
LCC AssumptionsLCC Assumptions 5 Years 500 hrs per year utilization 5 Year Warranty Trade Buyback Diesel Fuel @ $5.00 per gallon
![Page 58: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/58.jpg)
Purchase Purchase PricePrice
![Page 59: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/59.jpg)
Trade In Trade In AllowanceAllowance
Cleveland Brothers Equipment Co., Inc.
1979 Caterpillar 120G Equipped: Cab ; heat; 12' blade; front balderson coupler; hydraulics to front; front scarifier; 2
front & 1 rear light; Beacon; turn signals; Suspension seat; front & rear wipers; 6 forward adn 6 reverse speeds; All 2-piece rims; Left side outside mirror; float on blade
Selling Price: $32,000 Hours: 3,500 Serial Number 087V04846 Bill Hitchcock Phone: (570) 822-8141 Mobile: (570) 407-9594 Email: [email protected]
When you buy from Cleveland Brothers, you buy more than just iron.
Cleveland Brothers Equipment Co., Inc. 5300 Paxton Street, Harrisburg, PA 17111
(717) 635-7409 (866) 532-9023 Fax (717) 564-3964 www.clevelandbrothers.com
![Page 60: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/60.jpg)
BuybackBuyback
![Page 61: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/61.jpg)
Extended Extended Warranty Warranty CoverageCoverage
![Page 62: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/62.jpg)
Fuel Fuel ConsumptioConsumptionn
![Page 63: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/63.jpg)
Scheduled Scheduled MaintenanMaintenance & ce & Repair Repair ExpenseExpense(TM&R)(TM&R)
![Page 64: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/64.jpg)
Life Cycle CostLife Cycle CostSelling PriceSelling Price- Trade In Value- Trade In Value- Buyback- Buyback+Extended +Extended
WarrantyWarranty+ Fuel+ FuelSched. MaintenanceSched. Maintenance+ Repairs (TM&R)+ Repairs (TM&R)= Life Cycle CostLife Cycle Cost
$215,900$215,900(32,000)(32,000)
(107,500)(107,500)7,1507,15041,25041,250
21,08021,080$145,880$145,880
![Page 65: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/65.jpg)
Example:Example: PricingPricing
Initial Initial Purchase Purchase PricePrice
BuybackBuybackNet PriceNet Price
$170,000
(105,000)
$65,000
Dealer Dealer AA
Dealer Dealer BB
Dealer Dealer CC
$125,000
(70,000)$55,000
$130,000
(80,000)$50,000
High Buyback values are a result of Superior Resale value in the market & is a direct return on investment to your agency
![Page 66: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/66.jpg)
Example:Example: Add Fuel CostAdd Fuel Cost
Net PriceNet PriceFuel CostFuel CostTotalTotal
$65,00023,150$88,150
Dealer Dealer AA
Dealer Dealer BB
Dealer Dealer CC
$55,00039,400$94,400
$50,00036,250$86,250
Superior Fuel Economy offsets Superior Fuel Economy offsets substantial price differentialssubstantial price differentials
![Page 67: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/67.jpg)
Example:Example: Add MaintenanceAdd Maintenance
Net PriceNet PriceMaintenanceMaintenanceTotalTotal
$88,15020,250$108,40
0
Dealer Dealer AA
Dealer Dealer BB
Dealer Dealer CC
$94,40024,300$118,70
0
$86,25023,000$109,25
0
![Page 68: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/68.jpg)
Example:Example: Add RepairsAdd Repairs
Net PriceNet PriceRepairsRepairsLife Cycle Life Cycle
CostCost
$108,400
7,400$115,80
0
Dealer Dealer AA
Dealer Dealer BB
Dealer Dealer CC
$118,700
10,200$128,90
0
$109,250
8,500$117,75
0
![Page 69: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/69.jpg)
Factors contributing to lower Factors contributing to lower Maintenance Costs:Maintenance Costs: Superior Designs Technological Advancements Longer Service Intervals
– Lowering cost of fluid, filters & associated labor
State of the art manufacturing & best practices built into every machine – Increase durability– Improve reliability
![Page 70: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/70.jpg)
Factors contributing to lower Factors contributing to lower Repair CostsRepair Costs Premium Products backed by Superior
Service– Requires fewer repairs over the life of the
machine– Superior Service Locations & Capabilities– Superior Parts Availability
![Page 71: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/71.jpg)
Location LOCATION Location LOCATION LOCATIONLOCATION
![Page 72: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/72.jpg)
External Clients Utilizing CAT LogisticsExternal Clients Utilizing CAT Logistics®®
IndustrialAerospace &
Defense Technology
Automotive
Consumer Retail
![Page 73: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/73.jpg)
LCC Calculator from Cleveland Brothers
![Page 75: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/75.jpg)
SummarySummary Adds a new dimension to purchase evaluation Strengthens competitive low cost philosophy Removes Guesswork from Budgeting Establishes all major costs in advance Creates standards for quality evaluation Saves worry about downtime costs and lack of
availability Ensures that suppliers stand behind products SAVES TAX DOLLARS!SAVES TAX DOLLARS!
![Page 76: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/76.jpg)
QUESTIONS?QUESTIONS?
![Page 77: Presentation Harrisburg](https://reader035.fdocuments.es/reader035/viewer/2022062316/58a81bce1a28ab4d148b56ab/html5/thumbnails/77.jpg)
THANK THANK YOU!YOU!