Thursday, June 18, 2009

Investment in Medical Liquid Oxygen Delivery

Yesterday’s post discussed a fairly easy to evaluate choice between the purchase of a new 210 gallon Ultra vessel or reconditioned 190 gallon. It is pretty much a no-brainer to see the value of investing a few thousand dollars for additional capacity to allow 1-3 extra fills per day when the client base is there.

What if you have an opportunity to use a 500 or 850-gallon GOrilla vessel for delivery? The 500 or 850 truck, vessel and upfit could be $20,000 to $30,000 or more over what it takes to set up a smaller truck with a 210 class vessel.

Surprisingly enough, there are cases where the economics strongly favor use of a larger vessel. This is particularly true for more institutional providers who are serving extended care facilities, contract filling for others or running multiple trucks in a concentrated area. In some of these cases, a single driver with a larger vessel has been able to do the work in a standard work week previously requiring multiple drivers with overtime.

Granted- the Law of Marginal Utility applies and you can have too much of a good thing. Balance remains the key. The point here is that vendors with alternative outlooks can be an asset and open up ways of looking at business that might otherwise be missed. Helping clients find ways to save money through improved operations or open opportunities to grow their business is a joy. It is even more fun when it is possible to do both- Save and Grow.

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