A client needed a custom brass thermowell for their assembly so their customers could take temperature readings. They told us the approximate needs but did not know specifics. We were able to take that limited information and design a thermowell that fit needs they didn’t even know they needed. The client didn’t know about food grade requirements of brass, luckily we did.
We knew this was going to be a high volume product and one in which there was going to be a high variation in prices out there. So really dug in and found a supplier with the lowest price by far and had them custom make the needed food grade brass to make it. We independently verified the material met food grade requirements and found out they were the supplier for one of the top distributors for thermowells in North America.
The price ended up being 20% less than the next lowest cost supplier and 70% less than the average supplier cost. Many could not even provide the food grade material. Our prices were put up against independent verification on competitive quotes from other leading sourcing agents and we indeed crushed the price. We confidently say we found the lowest cost lead free thermowell in the world at $1.99, but that’s not the best part.
In addition, understanding the client’s assembly we were later able to come to them with an idea for an improved product by designing in a food grade silicone gasket instead of the hassle of Teflon tape. The client loved it. But what’s more, during that redesign me again went through our entire process to verify we still had the lowest prices around. For lead free brass and a silicone gasket, we did. But now that we had a proven order history of high volume and new buying power. We were able to get the price down on a much nicer looking and higher quality stainless steel version for only $1.35 and the client couldn’t be happier.
To top it all off, this newest supplier has a much lower price on the thermometer that goes into this thermowell. The old supplier had a price of $2.55 and this new supplier had a price of $1.30. The volume of the thermometer isn’t nearly as high as the thermowell, but a savings is a savings.
In the end, based on the prices the other sourcing agents came back with. Using Part Distribution LLC instead ultimately saved them about $55,000 a year and they have a higher quality material to show for it.