Cost-Benefit Analysis

/Cost-Benefit Analysis
Cost-Benefit Analysis 2020-01-15T12:17:33+00:00

What cannot be measured – cannot be managed!

Our customers report, and the system proves that

  • The product is successful in streamlining farms by 30% on average during harvesting.

  • As a result, the system saves growers between 20% and 30% of labor expenses.

A calculation by “Tznobar” company showed that, for vegetables growers, use of the PickApp system increases the operating balance by an average of NIS 2,160 per acre.  Farmers enjoy an immediate economic benefit which continues year after year.  This can be seen based on a conservative benefit estimate of 20% improvement in harvesting efficiency and a 5% increase in produce quality.  In practice, as noted above, even greater rates of efficiency have been observed.

The time it takes to return the investment (ROI) of the system when harvesting vegetables is approximately only two weeks!  Therefore, even a customer who uses the system for only a few weeks, at peak harvest times, is able to easily return the cost of the system and much more.

Moreover, the system is of great value to farmers in aspects of monitoring and control information – which cannot be measured financially.

The graph shows individual daily output among a team of workers during the picking season.

A dramatic improvement of 20% to 35% in the harvesting capacity of the various workers can be seen over a period of 15 harvest days.

Calculation of recoupment of system costs:

The calculation is made using an average of improvement in daily output (which is around 28%), which for a team of seven workers is equal to having two extra workers per day.

At a cost to the grower of NIS 300 per workday, this improvement saves NIS 600 per day in labor costs.

The cumulative savings add up to approximately NIS 9,000 over the course of 15 harvest days alone!

By comparison, the annual cost of the system for 12 acres of pepper crop is less than half this amount – that is, the time needed to earn back the cost of the system is only one week!

Using the calculator below you can estimate the potential of saving in your farm depends on the amount of quality and productivity improvement.

Farmer, do you want to reduce your farming expenses by 30%? Want to hear how it’s done?