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Return on Investment by using PCID

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Wednesday, 25 May 2011 16:36;

The following charts explains how the PCID machine can actually make money for the hair transplant surgeon just by using it compared to the strip and FUE manual procedure.

FUE Procedure - Productivity Comparisons

Cost Comparison for 2000 Grafts

2000 Grafts Strip CIT - No Auto CIT - With Auto
       
Remove Strip and Repair 60 mins None None
Dissection of Grafts 5 - 10 hours 5 hours 1 hour
Create Receipient Cut Sites 1 hour 1 hour 1 hour
Placement of Grafts per hour 360 - 600 grafts per hour 360 - 600 grafts per hour 360 - 600 grafts per hour
       
Cost per graft $3 per graft $6 - $8 per graft $6 - $8 per graft
Market Highly competitive Less Competition Less Competition
Productivity Low productivity More productive More productive
Typical Client Price $6,000.00 $16,000.00 $16,000.00
       
Estimated Surgery Cost
Remove Strip and Repair $300.00 $- $-
Dissection of Grafts $350.00 $1,500.00 $300.00
Create Receipient Cut Sites $300.00 $300.00 $300.00
Placement of Grafts per hour $116.67 $116.67 $116.67
  $1,066.67 $1,916.67 $716.67
Assumptions
Tech cost per hour $35.00 $35.00 $35.00
Surgeon Cost per hour $300.00 $300.00 $300.00

Recap of Surgery Profitability Strip CIT - No Auto CIT - With Auto
       
Surgery Revenue 6,000 16,000 16,000
Surgery Labor Cost 1,067 1,917 717
Disposables 200 200 200
Cost of Auto Ext Tool      
Cost of Sales 1,267 2,117 917
Gross Profit 4,733 13,883 15,083
  79% 87% 94%
       
Surgeon Hours 2 6 2
Cost of Auto Machine $61,000.00
Life of Tool 2 Years
Number of Surgeries per week 5
# of Surgeries per 2 years 480
Cost per surgery $127

1. FUE/CIT Surgery is 3 times as profitable as Strip surgery but requires 3 times the labor.
2. The Auto Extraction Tool cuts the surgeon labor down to 2 hours while improving quality and reducing surgeon stress.
3. With the Auto Extraction Tool the surgery is more profitable than manual FUE.
4. The cost of the Auto Extraction Tool is about $80 per

Return on Investment

Return on Investment Strip Manual FUE Auto FUE
Average Revenue per Surgery $4,000 $12,000 $12,000
Variable Costs $1,267 $2,117 $917
Average Gross Profit per Surgery $2,733 $9,883 $11,083
Surgeries per year 384 192 192
Gross Profit per year $1,049,600 $1,897,600 $2,128,000
Incremental Gross Profit $848,000 $1,078,400
ROI - Auto Extract Device 1768%
Payback - Weeks 3

1. Assumes average revenue per surgery is $4,000 for Strip and $12,000 for FUE.
2. Auto FUE makes labor cost same or less than Strip.
3. Assume 8 strips, 4 FUE surgeries a week for 48 weeks - actual production will vary.
4. ROI is return in 12 months on $61,000 purchase of Auto Extract Tool
5. Payback is the period in weeks to earn back investment.

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