Investing for the Long Run: Lifetime Value vs. Initial Price

Date: 2/5/2024

 

Price vs Lifetime Value: The Ultimate Decision-Making Dilemma

As one of the most important investments for many businesses, choosing the best crane can be critical to success. Although a significant initial investment, high-quality equipment will serve a business well. There’s a big difference between the price of equipment and its total cost of ownership (TCO) / lifetime value. Advanced features that ensure safety, productivity and longevity make R&M Materials Handling’s equipment stand out.

 

The Value-Based Approach to Selling Crane and Hoist Components

A deep understanding of a customer’s pain points, goals and needs is the foundation of value-based selling. It's not about convincing customers to spend more, but rather showing them how their investment in quality will lead to greater satisfaction and lower costs in the long run.

 

As a technology-forward company, the value of our components lies in advanced features that improve safety, productivity and maintenance, leading to enhanced lifetime value. A good way to approach the conversation with customers is to address the total cost of ownership when comparing the price of equipment. Equipment that frequently breaks down, causing downtime, will incur additional expenses. The cost of repairs plus the lost time when the production line is down can add up over time and quickly erase any upfront savings your customer may have initially recognized from lower-priced equipment.

 

How R&M Hoist and Crane Components Increase Lifetime Value

 

According to our research, the three key areas to discuss with your clients when it comes to lifetime value are safety, productivity and maintenance. Emphasize how investing a bit more upfront can lead to cost savings over time due to less downtime and fewer replacements or repairs. R&M products include features that gather data about these three pillars that can be used to maximize lifetime value.

 

Safety – When prioritizing safety, businesses can protect their employees, reduce expenses and lower their TCO. Many of R&M’s safety features are standard, such as overload limiter to restrict lifting based on rated capacity and rotary limiter to restrict hook travel. Additional smart safety features are available based on the application, such as antisway, restricted zones and micro-speeds. R&M's HoistMonitor® devices gather real-time equipment data and guard against overloads, faults and motor overheating, and users can easily access this information wirelessly through the OLI app.

 

Productivity – R&M builds in standard features that impact productivity, such as inverter-driven travel motions that help to control load sway without sacrificing speed. Options such as inverter-driven hoisting with extended speed ranges (ESR) help to improve production time by moving an unloaded hook quickly and safely. Additional speed options with micro-speeds allow operators to set the load quickly and precisely, improving productivity and safety. Proactive maintenance and crane inspection using technology like R&M’s OLI app can also reduce downtime and improve productivity.

 

Maintenance – Proper maintenance is the final pillar in lifetime value for cranes and hoists. R&M's HoistMonitor Enclave gathers real-time information so that active faults or warnings can be easily viewed and addressed. R&M’s OLI app takes the data collected and displays it in an easy-to-understand format. It can then be used to predictively schedule maintenance or replace a part, avoiding breakdowns that cause unexpected downtime.

 

Benefits of Hoist Monitoring them from overloads and reporting on how they are being used. The monitoring functions work in the background and do not impede the use of the hoist.

HoistMonitor Enclave benefits include:

  • Overload protection to prevent the motor from overheating and affecting the hoist’s service life
  • Shock load protection automatically monitors hoist speed until a load is in the air, lowering maintenance costs and extending lifetime value
  • Starting and stopping through slow speeds for safer load handling
  • Time stamped alarm/fault log for easier troubleshooting
  • Reliable calculation of the hoist’s Designed Working Period percentage (DWP%) to determine the amount of useful life available
  • Keypad and built-in display for retrieving information manually if needed

 

Additional Capabilities with HoistMonitor Enclave + gateway modem:

  • Compatible with future remote monitoring technologies for easy access to real-time data, anytime and anywhere
  • Wireless connectivity with the OLI app offers local Bluetooth access to data

 

Aftermarket Services

Selling aftermarket services requires a focus on building customer trust, demonstrating value and addressing specific needs that arise after the initial purchase.

 

Our Lifetime Value Calculator can help you demonstrate how important preventive maintenance is to the total cost of ownership of cranes and hoists. The calculator will provide a score based on the application’s usage and the potential savings available with a service contract. The calculator takes into consideration the potential for reduced downtime and how that would affect productivity.

 

With this information in hand, you can provide a clear and comprehensive outline of the value of service plans. Regarding cranes and hoists, preventive maintenance is an investment, not an expense.

 

Have questions or a project to discuss? Contact us online or call give us a call at 800-955-9967.