# "CLP- economics"

**PLEASE NOTE: THIS NUMBERS ARE PRELIMINARY. THEY REFLECT "WORSE CASE SCENARIO"
ONCE WE WILL DETERMINE THE FINAL END-USER COST OF THE PEELER THE NUMBERS WILL BE CORRECTED**

The table below shows the average productivity of the man-peeler and the CLP-1 machine

The CLP-1 machine can "produce" in average at least 8 40ft (12m) long logs during 8h work-shift. (Woodlandia aims to improve the machine and increase this number twice).

In our calculations we assumed following wages for man-peelers (average for USA & Canada):

We also assumed that average logworks is as following in the table below:

And the table below demonstrates cost of operating of CLP-1 per month and per hour:

In our next calculations we assumed that average (labor) cost of **man-log peeling is $1.88 per ln ft**.

Conclusions

There are two types of to approache the business

**Option-1**: to lease / finance the CLP-1**Option-2**: to pay "cash" for the CLP-1

For those who prefer to lease/finace the machine (**Option-1**):

1. The CLP-1 machine is reasonable investment to a businesses if the business makes 5 or more log shells per year.

For example:

- If the business makes 5 log shells per year then average peeling cost of 1 log using CLP-1 machine is less than $72.
- If a business produces 12 log shells every calendar year then average peeling cost of 1 log using CLP-1 machine is less than $45.
- If a business produces 25 log shells every calendar year then average peeling cost of 1 log using CLP-1 machine is about $35.

2. The CLP-1 machine can safe the owner from 1.5K to 80K and more annually (more log shells is produced per year more the machine will safe)

3. The CLP-1 machine will significantly safe a business man-hours, which can be "redirected" to the area which brings more profit (construction, marketing, customer servce, etc)

For those who prefer to "pay cash" for the machine (**Option-2**)::

1. The machine will pay for itself afyer all logs for 10 log structures (2400 sq ft) will be peeled.

2. Significant time gain can be achieved by those who uses CLP-1 in comparison to "the man-peelig method". For example, to mill 76 logs (40ft or 12m long) which are enough for 1 log shell with average area 2400 sq ft (223 sq m) The business needs to emply "3-4 men-peelers" during 1 month. On the log peeler CLP-1 all logs can be peeled during max 2 workshefts by 1 operator.

The data in the table below demonstrates the time gain achieved with the CLP-1 in comparison to traditional "man-peeler method".

3. So if the small business is able "to frees" its capital by paying cash for the machine then CLP-1 can be a good choice. If the business does not have enough financial capital to invest into CLP-1 and the business does not produce more than 5 log shells per year then CLP-1 is not recommended.