3 seconds saves you $6,250 a year
3 seconds is all it takes to do a ticket in Nexus. Too good to be true? Have a look at this video:
Compare this to almost any other system on the market today which takes nearly 15 seconds to create a ticket, take images, etc.
Using Nexus instead of other systems, simply based on this singular metric can save a scrap yard approximately $6,250 annually in labor costs, per scale due to the faster ticket processing time. By reducing the time per ticket from 15 seconds to 3 seconds, Nexus helps scale workers handle tickets more efficiently, contributing to these significant savings over the course of a year.
1. Calculate Total Tickets Processed per Year
A typical yard processes 300 tickets per day.
Days in a year: 365.
Total tickets per year = 300 tickets/day × 365 days = 109,500 tickets
2. Calculate Time Spent Processing Tickets per Year
With Nexus:
Time per ticket = 3 seconds.
Total time per year = 109,500 tickets × 3 seconds/ticket = 328,500 seconds
With Other Software:
Time per ticket = 15 seconds.
Total time per year = 109,500 tickets × 15 seconds/ticket = 1,642,500 seconds
3. Convert Total Processing Time to Hours
With Nexus: 328,500 seconds ÷ 3600 = 91.25 hours
With Other Software: 1,642,500 seconds ÷ 3600 = 456.25 hours
4. Calculate Hourly Cost of a Scale Worker
Annual pay = $50,000.
Approximate work hours per year (assuming 8-hour days, 365 days): 365 × 8 = 2,920 hours
Hourly rate = $50,000 ÷ 2,920 = $17.12 per hour
5. Calculate Annual Labor Cost for Ticket Processing
With Nexus:
91.25 hours × $17.12 = $1,562.90
With Other Software:
456.25 hours × $17.12 = $7,812.50
6. Calculate Annual Savings with Nexus
Savings = Cost with Other Software - Cost with Nexus
Savings = $7,812.50 - $1,562.90 = $6,250
THE BOTTOM LINE: If your location has four scales, Nexus can save you $6,250 x 4 = $25,000 in annual labor costs.
Nexus Labor Cost Savings Calculator
| This should include all the time it takes for customer lookup, data entry, weighing, taking pictures, selecting the commodity, etc. Without software, simply using paper and a digital camera, this time is usually around 60 seconds. |
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Saved labor costs -- so what?
So what, right? You have to pay those guys to be there anyways. What does it matter if you are saving $50,000 a year on labor costs because of less computer/ticketing time.
One less employee needed
Simply put -- you could employ one less guy at that rate and reduce your operating costs, saving you money, with no loss of efficiency or productivity.
More time to spend on money-making processes
Alternatively, you can keep all your guys on for what you are currently paying them and because of all the labor time you are saving, you can simply dedicate one of your guys to other taks, such as car crushing, running the front loader, stripping various ICW and turning it into bare-brite copper, while still moving customers through the line at the same rate you are today.
Lets see how that scenario plays out:
Assumptions for This Analysis
- You are a scrap yard maxed out as far as the number of customers you can move a day. From sunup to sundown, you have a line of customers that never stops because your processes with your current ticketing procedures are simply too slow to quickly move customers in and out.
- Because you are maxed out, all your employees spend all their time handling material and ticketing, and due to this, you don't have the labor bandwidth to engage in other money making practices and cannot afford to hire additional hands to expand your business horizontally into new money-making avenues.
- We are bringing in 200 tons of #1 85% Insulated Copper Wire (ICW), equivalent to 400,000 pounds annually.
- ICW recovery percentage is based on the amount of copper in the wire. For #1 85% ICW, the recovery rate is 85%.
1. Copper Content and Waste Calculation
- Total ICW Weight: 400,000 pounds
- Recoverable Copper (85% of ICW):
400,000 lbs × 0.85 = 340,000 pounds of copper - Waste (15% of ICW):
400,000 lbs × 0.15 = 60,000 pounds of waste
2. Revenue Comparison: Reselling vs. Stripping to Bare Brite
Current Process (No Stripping)
- ICW Purchase Price: $2.16 per pound
- Total Purchase Cost:
400,000 lbs × $2.16 = $864,000 - Resale Price (30% Markup):
$864,000 × 1.3 = $1,123,200 - Profit from Reselling ICW as-is:
$1,123,200 - $864,000 = $259,200
Alternative Process (Stripping to Bare Brite)
- Bare Brite Copper Price: $3.53 per pound
- Revenue from Selling Bare Brite (with 30% markup):
340,000 lbs × $3.53 = $1,560,260 - Profit from Stripping and Selling as Bare Brite:
$1,200,200 - $864,000 = $696,260
Conclusion
Switching to Nexus and reallocating labor allows us to dedicate resources to stripping ICW into bare brite copper. This change would yield an additional $437,060 in annual profit over the current practice, significantly increasing revenue by leveraging the higher value of bare brite copper simply by having faster software which saves you time and therefore makes you money.
Obviously this is just an example, but the bottom line is - Nexus saves you so much time, you can use that time by reinvesting in your business and doing things that make more money, which you don't currently have the time or bandwidth for whether it be stripping wire, granulating, dissecting vehicles or doing roll-off containers or pickups.
Nexus is streamlined in every way to allow you and your employees to spend as little time in front of the computer as possible and when you are ready to expand your business horizons, Nexus has all the features you need.
