Mehaz sharpening service
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Mehaz Sharpening Service . Transition to new service and $ave!. Overview. Mehaz currently offers free sharpening service on our implements to consumers Consumer sends in $3.00 per implement to cover service and handling

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Mehaz Sharpening Service

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Mehaz sharpening service

Mehaz Sharpening Service

Transition to new service and $ave!


Overview

Overview

  • Mehaz currently offers free sharpening service on our implements to consumers

    • Consumer sends in $3.00 per implement to cover service and handling

  • Goal of this project is to reduce Spilo’s costs while maintaining the level of service


Current service

Current Service

  • Custom Sharpening by Hand is our current service provider

    • Consumer sends in $3.00 per implement for service & handling

    • Custom handles approximately 1,600 nippers and 650 tweezers per month

    • Charges Spilo:

      • $1.50 each for service

      • $1.50 each for postage

      • $62.50 per month for mailers

    • Spilo provides supplies at no charge, totaling approximately $2,000 annually

      • Includes price cards, preprinted labels, springs, caps, etc.


2011 cost recap

2011 Cost Recap

  • Total cost for 2011=$30,296

    • Implement Sharpening= $13,374

    • Mailers= $768

    • Postage= $13,374

    • Supplies= $2,780

  • Total number of implements serviced= 8,916

  • Average cost per implement= $3.40 each


Alternate supplier clipper shack

Alternate Supplier – Clipper Shack

  • Clipper Shack has agreed to the following:

    • Service implements at no additional charge to Spilo

      • Will perform the work for the $3.00 received from consumer

    • Spilo will continue to provide supplies

    • Spilo will reimburse for actual postage

  • Cost per implement would be reduced from $3.40 each to $2.33 each

  • Approximate annual savings= $9,540.12

* Assumes average postage of $2.00 per implement and 10% increase in cost of supplies


Next steps

Next Steps

  • Obtain signed agreement with Clipper Shack by 10/15/12

  • Advise Custom Sharpening by Hand in writing by 12/1/12 that we are changing services and request that he continue to service implements through 1/31/13

  • Update all materials with new address information and begin using by 11/1/12

  • Utilize Facebook, website, customer service and other appropriate means to get the new address out to consumers

    • Provide a notice to be included in returned implements with new service center address and new mailing labels effective

  • Update address information in Catalog One-2013

  • Complete transition as of 2/1/12

    • Request Custom Sharpening to forward implements to new service center after this date

      • Spilo to pay forwarding postage


Thank you

Thank You!


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