LOWEST TOTAL COST OF OWNERSHIP

Lubricants in Perspective

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Lubricants are Not Commodities

Lubricant performance can vary greatly between competing mineral and competing synthetic oils. Because these quality differences directly and significantly impact the ultimate cost of operating and maintaining the rotating equipment, lubricant purchases can not be effectively managed as a commodity. Lubricant excellence must always be purchased, for even the most effective lubricant management practices cannot impart properties to a lubricant that it doesn’t possess.

Just the Facts

Royal Purple lubricants consistently deliver a higher level of performance across a broader group of equipment than other industrial oils, including the synthetic oils offered by our largest competitors. No other lubricant offers a lower Total Cost of Ownership for the majority of your plant equipment. The cost reductions consistently exceed the total cost of the product, often within a few weeks as illustrated by the examples below.

Total Royal Purple Savings in Perspective

The Big Picture

• example is based on 36,000 HP (electrically driven) operating 8,000 hours per year @ $0.05 kwh power cost
• lubricant purchases are 3% of the maintenance costs
• lubricant purchases are 3/4% of the energy costs
• though conceptually accurate, expense ratios will vary from plant to plant

Rotating Equipment Cost Savings using Royal Purple

The following pie chart illustrates the savings attainable across a broad population of equipment from upgrading to Royal Purple lubricants.

• energy savings are typically greater than 3%
• need for equipment repair reduced by at least 30%
• though Royal Purple lubricants may cost more per gallon, the annual cost for lubricants changes little due to greatly extended drain intervals and the elimination of oil changes associated with equipment repairs

Savings in Perspective

• Total savings - $1,260,000
  • annual return on oil investment is 1400%
  • 90 day ROI based on energy savings
  • 37 day ROI based on maintenance savings
  • 26 day ROI based on combined energy and maintenance savings
  • annual Energy Savings is $10.00 per HP
  • annual Maintenance Savings is $25.00 per HP
• even a total elimination of current lubricant costs would produce insignificant savings compared to the savings routinely attained from upgrading to Royal Purple lubricants
• a Rohm & Hass Operational Excellence model estimates that for each dollar saved in maintenance, $3.00 to $7.00 in economic benefits accrue to other areas via improved quality, inventory reductions, energy savings, safety and increased uptime ($2.7M to $6.3M for this example)

Purchasing Your Way to Improved Profitability

Most cost savings initiatives intended to reduce maintenance costs and improve rotating equipment reliability are very time and people intensive. Royal Purple offers significant improvements and cost savings by simply replacing a product you already buy and use. It doesn’t get any easier than this.

The Conundrum

Your current supplier is delivering the message you want to hear… that the best value is attained by maintaining tradition and purchasing major brand quality at competitive prices, often with the opportunity to further reduce purchase costs by consolidating your purchases. Royal Purple is delivering the message that its lubricants produce savings that dwarf your total expenditure for lubricants. Both of us can’t be right. And while a part of you would like to believe these savings are possible, it just doesn’t seem plausible that they can be achieved by just changing lubricants.

Believe It

The primary job of a lubricant is to reduce friction and protect lubricated components (energy and wear). Most rotating equipment repairs are due to the failure of lubricated components, mainly bearings. Therefore, it makes perfect sense that truly superior lubrication will deliver energy and maintenance savings.

Be Prepared

When your current supplier learns that you are considering any use of Royal Purple lubricants, expect them to reinforce your doubts. You will hear how large their research departments are and that a smaller company couldn’t possibly offer better products. You will be shown carefully selected laboratory tests intended to clearly show their products to be technologically superior. Every means will be exerted to prevent a head-to-head comparison with Royal Purple at the equipment level, where the outcome is already known to them. They would have you continue to make, without all of the facts, a decision that falls within your comfort zone. Case study synopses that follow clearly illustrate why this is not in your best interest.

Result Oriented Decision Making

Royal Purple encourages you to make an informed decision based on actual results in your own equipment. Ask your maintenance and operations departments to select candidate equipment for your own evaluation of what Royal Purple lubricants can do for you. After all, it is your money.

Case Studies

The following case studies have been assembled according to whether the primary benefit reported from using Royal Purple lubricants was energy savings, maintenance savings or improved production. In virtually every instance, Royal Purple lubricants replaced major brand lubricants that met all of the equipment manufacturer’s requirements. In multiple examples, Royal Purple replaced another synthetic oil.

It is important to note that in most of the case studies, the equipment involved did not suffer from mechanical defects nor did the equipment lack proper maintenance. Improved performance resulted because Royal Purple lubricants were able to mitigate the effects of the operating conditions in which the equipment was required to operate. All of the reported energy studies are inclusive of every piece of equipment selected for evaluation so as to be representative of what might be expected across a broad population of equipment.

Energy Savings     Maintenance Savings      Production Improvements