Essay About Gallon Disposal Charge And Vacuum Pump

Commercializing the Kunst 1600 Dry Piston Vacuum Pump
Essay Preview: Commercializing the Kunst 1600 Dry Piston Vacuum Pump
Report this essay
Construct a customer value model for the Kunst 1600 in the residential AC, home refrigerator and light commercial refrigerator repair market segments.
Ans.
Deciding Attributes
Residential AC repair segment
Home refrigerator repair segment
Light commercial refrigerator repair segment
Pump rating
3 CFM to 6 CFM
1 CFM
1.5 CFM
Pump Price (in $)
$250 to $320
Expected life (in years)
2.5 years
3 years
2 years
Average spending per year on vacuum pump by repair firm owners (in $)
$100 to $128
Oil Price (in $)
$8 (per quart of oil)
$4 (per pint of oil)
$4 (per pint of oil)
Scouring soap price (in $)
$0.50
$0.50
$0.50
Towel price (in $)
$0.15
$0.15
$0.15
Oil disposal cost (in $)
$1.25 = $5*1/4 gallon(@ 5$ per gallon disposal charge)
$0.625 = $5*1/8 gallon(@ 5$ per gallon disposal charge)
$0.625 = $5*1/8 gallon(@ 5$ per gallon disposal charge)
Labor cost on changing oil (in $)
$15 =$30*1/2 hour (@ 30$ per hour by repair technician)
$7.5 =$15*1/2 hour (@ 15$ per hour by repair technician)
$12 =$24*1/2 hour (@ 24$ per hour by repair technician)
Savings on Oil change per job (in $)
8+0.5+0.15+1.25+15
=$24.9
4+0.5+0.15+0.625+7.5
=$12.775
4+0.5+0.15+0.625+12
=$17.275
No. of oil changes per year
20 times (@ oil is changed once a week in the season of 20 weeks)
12 times (@ oil is changed once a month)
12 times (@ oil is changed once a month)
Total savings on oil change (A)
$24.9 * 20 times per year
= $498
$12.775 * 12 times per year
= $153.3
$17.275 * 12 times per year
= $207.3
Savings in time by employing Kunst 1600
Nil as Kunst 1600 doesnt reduce the vacuum time of 30 minutes
Nil as the vacuum time of 15 minutes in repair job is already meager & reducing it doesnt save significant
Reduce vacuuming time by 10 minutes from per job vacuum time of 30 minutes. Thereby increasing at least 2 more jobs per week
Profit per job (in $)
Increase in profit earned by employing Kunst 1600 (B)