We are asked by many extruders and die casters to calculate the ROI for the purchase and installation of our tooling systems. If the ROI is less than one year, the system is usually purchased. In virtually all cases, the ROI is less than a year, and in most cases measured in weeks or months.
Extrusion Knock Off
A knock off is any die that goes to the press and is removed before completing the planned production run.
The typical 7 to 9″ extrusion press operates at $1,000 per hour. This includes packing and transport. Die costs are usually around $0.03 per pound. The cost of a knock off is typically thought to be $300. This neglects the impact of loss to customer service from failing to meet the expected delivery.
The argument is that if you are making $0.15 per pound profit, you need to extrude 2,000 pounds to make up for each and every die “knock Off”.
Posted by: Paul Robbins
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