- Joined
- Jan 12, 2009
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- 3,198
I don't know what you do for a living, but I work in a factory and I often have to perform cost estimates. When you add in all the overhead costs of keeping a factory running, the cost of labor is roughly $130 an hour. This is called the "burdened rate". (I've worked in several factories. The burdened rate doesn't vary all that much. Taxes, light bills, secretaries, building maintenance. It all has to be paid for in each activity an employee performs.)
So, for $30, if it takes a skilled worker more than 14 minutes to remove the broken bone, find a matching piece and attach it, then Case is losing money. Personally, I'd guess they are losing money at that rate.
Fixing a knife is not the same as running one through the semi-automated production line. It's concentrated hands-on labor, which means it's bloody expensive.
Well said, Frank. I think it is entirely generous of CASE to even do something like that. You know that if it isn't 110% on its return, the next action will be to post there with how badly CASE screwed it up, lost it, or didn't match the aged portion of the knife, or polished out the pocket wear, etc.
99% of people are not business folks, and I run into the same screams of disbelief when I quote a price for repairs, maintenance or remodel. No one thinks about someone in receiving taking in the knife, logging it in the system, inspecting for repairs, then checking to see if that is something CASE is able to do with some surety. Then they have someone contact the sender, and tell them the scope of repairs and the price, and wait to hear from them. The knife is tagged and stored for future reference.
The owner of the knife agrees to the repairs, so the knife is pulled and goes into the line of knives to be repaired by a Cutler, not a line machine operator. The knife is carefully repaired, cleaned up, sharpened, and put in a box for packing to send to the owner.
Before it is sent out, payment is verified, and unless someone sent cash, a payment was made by credit card that will automatically take about 2 1/2% of the charge. The knife is packed, a shipping label is generated, and tracking number is logged in, and it is taken down to shipping. And of course, if it is sent insured, that's a bit more.
CASE should be ashamed of themselves for giving that away. I have been in business for myself for about 30 years now, and I quit being a charity years ago. If ANYTHING goes wrong with this transaction (real or imagined)or even if the owner is just disappointed, they will spread it all over the internet. In a cost/risk assessment, if I were CASE I would have declined to do any kind of repair or service work on a knife that wasn't under warranty. Regardless of what you charge for your repairs, you still have all the same liability and warranty issues for the product you repair. $30 or $300 worth of work, the issues are the same.
The way my buddy that repairs tools handles this is a big sign that says, "Bench fee minimum $65 NO EXCEPTIONS. All parts extra". So if you take your old drill in to him that you paid $75 for 5 years ago and have used it pretty well (or not!) he just points to the sign and asks for "down payment" up front. Scares off the folks looking for free or near free work.
As far as CASE goes, I don't know how any manufacturing business can do a one off of anything for $30.
Robert
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