[Videolib] Disc repair costs

dewright@rubberdisc.com
Thu, 8 Mar 2007 19:44:41 -0000 (UTC)

I sent the following message to Barbara Rhoades. I've edited it a bit
further. I thought I'd share this with the board for information
purposes:

Barbara,

I read your request for information. I don't have exact figures for the
Senior as we run the EcoMaster machines but I believe the per disc costs
to be similar - just a difference in quality of finish, speed, ease of use
and, of course, cost of the machine.

Here are some things to consider:

Cost of the machine - fixed but per disc cost would depend on the number
of repairs completed. For example, if the Senior is $5,500 and you run 50
discs a week for an average machine life of 5 years, you will run around
12,500 discs over the life of the machine. This would equate to a $0.44
per disc. If you are running higher numbers, this would obviously bring
the price down, if less, the price per disc would be more.

Per disc pad costs for medium depth scratches:
$3 per pad x 3 pads per 50 discs plus one pad (soft pad) at $6 per pad/250
discs repaired equals a per disc cost of $0.204 per disc

Bottle of polish @ $80 per bottle/1,000 discs repaired = $0.08 per disc
Eco Solution D (water conditioner) @ $50 per bottle/2500 discs = $0.02
per disc

Maintenance costs (annual average replacement parts for sanding motor,
platen motor, pad holder, center pin) $250/ avg 2500 discs per year) $0.10

Total costs of repair (not including labor) - $0.844 per disc

Labor @ $18 /hr (wages + payroll taxes and benefits) / 10 disc per hour
+$1.80

Total production costs = $2.644

As you can see, the $3 or $2.75 we charge for disc repair is about the
same and you don't have the concerns with maintenance, labor, training,
inproperly repaired discs leading to replacement, etc.

I would suggest, that unless you are doing a high volume of repairs, a
repair provider is a better alternative. While I believe these figures
are fairly accurate, as I've said before, I am biased.

I would be happy to answer any questions you might have.

Sincerely,
David Wright
Rubberdisc.com
303.250.8452

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