Runaway usage… Biggest maybe…

Runaway usage… Causes and corrections

You get the complaint call that they shot through a week’s supply of detergent in a day. So you head over to figure out what might be the cause. Suspecting a dispenser malfunction you titrate the wash tank but it’s exactly where you set it. Next you drain the tank and let it recharge but again the concentration is on the mark. Hmmm.

Aside of an almost never seen (and nearly impossible) randomly sticking solenoid valve, the issue isn’t in the dispensing system. Of course it could have been the water softener, but you checked the hardness, and it was nominal. So for now the water softener is operating just fine.

The operative word to both of those findings is “for now”.

Maybe the water softener’s recycle program isn’t set to cycle frequently enough and when it passes the tipping point the water hardness exceeds the sequestering capacity of that detergent. And then scale forms on the electrode. Or maybe you’ve got the concentration set right on the ragged edge of being able to control the water’s hardness.

Either of those conditions can result is an electrode that’s insulated by a thin layer of lime scale. The resulting overfeed can increase concentration unbelievably – until it’s finally high enough to strip that insulating scale from the electrode. So maybe it’s time to bump the concentration a bit and give it a day to see if the problem’s resolved. If not, then perhaps we need to adjust that recycling time.

Biggest maybe… not the bestest?

We tend to automatically think our biggest account is our most profitable. Perhaps it is or maybe not. Looking only at the raw numbers – like their total purchases and maybe the fact they’re being billed at list price, that’s not an unwarranted belief. But what about the cost to maintain them?

If they’re being serviced weekly versus less demanding customers (who get by on monthly service) that’s a cost that we need to consider. It may not be intuitively obvious, but sometimes those larger customers might be costing more per dollar purchased to service than their smaller or less demanding counterparts.

To know the real bottom line we first need to know what each hour of our service costs. To calculate that number look at all your costs – to include your earnings, vehicle operating expenses, (depreciation, gas, maintenance, insurance, etc.). Then divide that total service cost by the 2000 hours in a “normal’ work year.

Now estimate the hours required to maintain the business. Multiply that total times your cost per service hour. Subtract that total from their gross profit dollars and you know the net profit they’re actually contributing.

Next up: Some remedial P&L thoughts.