Mehaz Sharpening Service
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Transcript Mehaz Sharpening Service
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
Goal of this project is to reduce Spilo’s costs while
maintaining the level of 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
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
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
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!