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Wednesday, September 15, 2010

Why outsource hooks and racks - Cost Analysis

Dear [FirstName]:

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Buying vs. Making Hooks

Cost Analysis
Hook Part Number: C-407                                                                      
Description: 4”L x 0.076” “C” style standard hook
  • Employee Pay Rate
Straight hourly rate
$8.00/hr. employee
  • Cutting wire to Size
Based on Mighty Hook time study
500 pieces. per hour average (One wire length cut per 7)
  • Forming Hook ( 2 ends per hook)
Based on Mighty Hook time study
250 pieces per hour average (1 hook per 14 seconds)
  • Wire cost
Based upon prevailing market pricing for wire
0.076” Diameter  x 8.5” Long hard drawn spring steel wire to produce 4” Long standard “C” style hook = $0.011/ea.
  • Time to Produce 1000 hooks
Cutting: 500 pieces/hr. * X = 1000; X=1000/500=2
Forming: 250 pieces/hr. * X=1000; X=1000/250=4
2 hrs. Cutting  
4 hrs. Forming
Total: 6 hours
  • Cost of cutting and bending 1000 pieces
$8.00/hr. x 6 hrs. = $48.00
  • Cost of making each hook  
$48.00/ 1000 + $0.011 = $0.059/ea.
  • Cost of making 2000 hooks
$0.059/ea. x 2000 = $118.00
  • Cost of Buying Hooks from Coater One
From Intech Services Standard Website Pricing List
$54.00 per box of 2000 hooks
  • Savings from buying hooks from Coater One vs. making them in house
$118.00 - $54.00 = $64.00
Visit to see our extensive CoaterOne Hooks & Racks product line.  
In addition, if you have custom hook and rack requirements contact us for a free estimate.



Intech Services, Inc. 
The Sole US & Canadian Distributor for DuPont Teflon* Finishes

CoaterONE e-marketplace
Online Purchasing & Information Resource for the Coating Industry

7 McMillan Way #101   Newark, DE  19713        Office (302) 366-8530


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