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Average Equipment Operating Costs
Using Traditional Lubrication Practices

(ie. Using ordinary commercial grade oil changed at manufacturer’s specified intervals.)

According to the findings of a survey of about 115 major US trucking fleets, representing hundreds of thousands of vehicles, it was determined that average vehicle and equipment operating costs can be broken down as per the percentages shown in this graph.

(The above percentages are the findings from a survey of about 115 major US trucking fleets, representing hundreds of thousands of vehicles. Source: NPRA Paper, Houston, Texas, 1989. The figures have since been reconfirmed as still being accurate at the Future Directions Conference (Lubricants – Worldwide), an international conference held in Sydney, Australia, in April 1998.)

Of great interest to PM Lubricants are the two largest costs and the smallest cost, because using PM products can make a big difference to the outcome of these figures.

• Fuel - 37%  (of Total Operating Costs)
• Maintenance - 27%  (of Total Operating Costs)
• Lubricants - just 1%  (of Total Operating Costs)

On average:

• Fuel and Maintenance together cost you 64 cents in every dollar or 64% of your Total Operating Costs
• Lubricants only cost you 1 cent in every dollar or 1% of your Total Operating Costs.

It is also a well proven fact that the quality of the lubricants you use plays a significant part as to whether or not your Fuel and Maintenance costs INCREASE or DECREASE.

Because of their exceptional quality and very high film strength, it is a well proven fact that using PM Lubricants will help you DECREASE your Fuel and Maintenance costs quite substantially.

PM lubricants cost more than normal commercial lubricants to buy, but more than 20 years of results show that if you increase expenditure on lubricants from 1% to 2% or 3% of your total operating costs by purchasing PM's better quality lubricants, you will actually DECREASE your fuel costs by at least 10% and DECREASE your Maintenance costs by a massive 50%.

These statements are not fiction and the figures quoted are well proven and documented. To understand and discover how using better quality lubricants can DECREASE your total operating cost by a guaranteed 15%, read the following information on this page.

How You Can Convert 15% Of Your Total Operating Costs

Into Profit - Guaranteed!

   Since 1982, people using PM’s premium quality, preventative maintenance lubricants together with the Complete, Predictive and Preventative Maintenance Lubrication Concept in all manner of vehicles and equipment, have been reporting impressive operating cost savings. On average, PM clients enjoy a 15% saving and reduction in Total Operating Costs.

Customers report that:

   The initial cost to buy PM’s Premium Quality, Preventative Maintenance Lubricants is usually a bit higher, but, after following the principles of the Complete, Predictive and Preventative Maintenance Lubrication Concept for a while, owners and operators are delighted to discover that the noticeable improvement in performance, plus the huge maintenance cost savings they experience, more than justifies the small increase in lubricant costs.

   In fact, many have said that what they save in fuel alone more than covers the extra cost of PM oil.

   PM customers discover that, even though the initial purchase price of PM's Premium Quality Lubricants is 2 to 3 times more than ordinary oil, the extra investment soon pays off.

On average, customers report a massive...

• 50% reduction and saving in maintenance costs, ie. 50% of their previous maintenance costs now stays in their pocket,

• and a 10% average improvement in fuel economy.

   In relation to overall operating costs, that means their two major operating costs, Fuel and Maintenance, drop, on average, to:

• Fuel - 33.3% of Total Operating Costs - down from 37%

• Maintenance - 13.5% of Total Operating Costs - down from 27%

   The initial outlay on Lubricants increases from 1% of Total Operating Costs to 2% to 3%, but because PM Lubricants last so long in service, they eventually reduce their overall lubricant requirements by up to 80% - so overall oil costs actually decrease.

   On average, Fuel and Maintenance costs drop from 64 cents per dollar of Total Operating Costs, down to 46.8 cents per dollar of Total Operating Costs – a saving of 17.2 cents per dollar!

   Lubricant costs initially increase from 1 cent per dollar of Total Operating Cost to 2 to 3 cents per dollar of Total Operating Cost, but in the long term, could cost you less than 1 cent per dollar.

   The end result then of buying PM's Premium Quality, Preventative Maintenance Lubricants at 2 to 3 times the purchase price of ordinary lubricants, and using them in conjunction with the Complete, Predictive and Preventative Maintenance Lubrication Concept, is a 15% average saving and reduction in your Total Operating Costs - Guaranteed!

   That is a SAVING of 15 cents per dollar of Total Operating Costs, or $150 per $1,000. Would that help your bottom line?

“Whole Of Life” Evaluation Of Your Lubricants

The primary purpose of any lubricant is to:

• reduce friction, heat and wear

• provide protection against their damaging and expensive effects on your equipment.

   In this sense, lubricants provide Protective Insurance.

   Therefore, you shouldn’t regard lubricants as a consumable item like fuel, to be purchased at the cheapest price per litre. It isn't sound financial management to buy lubricants at the cheapest price per litre!

The few dollars you save buying cheap oil usually translates into expensive repairs in the workshop and higher fuel bills.

   Internationally, it is recognised that lubricants represent just 1% of your total operating costs, with Fuel being 37% and Maintenance 27%. But that one percent significantly effects fuel and maintenance costs for better or worse, depending on the quality of your lubricants.

   When purchasing any lubricants for your equipment, the following four parameters should be considered together if true cost effective lubrication is to be accomplished.

   1. Purchase Price of Lubricant

   2. Expected Useful Life of Lubricant (EUL)

   3. Oil Quality Maintenance Costs over EUL

   4. Disposal and Management Costs of Waste Oil

   As lubricant manufacturers, PM Lubricants’ aim is to provide you with the best, most cost effective Protective Insurance possible in all their lubricant products. PM's Complete, Predictive and Preventative Maintenance Lubrication Concept takes these parameters into account.

   PM Lubricants might cost a little more to buy, but, if you compare "Costs per Annum" instead of "Costs per Drum" - you will soon discover there is a significant difference.

   Since 1982, PM Lubricant clients have repeatedly and consistently proven, that by spending a little more on better quality lubricants, the return to you is about a 15% reduction in overall operating costs.

Which means - it stays in your pocket.

   So, we invite you to compare "Costs per Annum" instead of "Costs per Drum" - you will discover a big difference.

Proven “Whole of Life” Benefits Using PM Lubricants

To maximise the "Whole of Life" Benefits of their lubricants, PM Lubricants proven, cost effective recommendation is:

1. Use premium quality, preventative maintenance lubricants in your equipment, which may mean investing 2 to 3 times more in the initial purchase price of those lubricants than you normally would (eg., $8 per litre instead of $4 per litre).
However, this practice will effectively reduce your total annual oil requirements by up to 80%, actually reducing your overall annual lubricant costs and requirements.

2. Adopt PM's Complete, Predictive and Preventative Maintenance Lubrication Concept and you will...

• Safely extend Oil Drain Intervals and increase the Useful Life of your lubricants 3 to 10 times more than when using ordinary commercial lubricants, thus...

• Saving frequent (OEM) scheduled oil drains & service costs, eliminating up to 80% of oil drains, while

• Reducing waste oil and container quantities, management, storage & disposal costs.

**PM Lubricants recommends that you always change oil filters at OEM specified intervals or alternatively, gauge optimum filter life and change time with the use of a Lubri-Sensor Oil Quality Analyser.

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