Cost efficiency and ROI of askon hand dryers as compared to use of paper towels

In part 1, we compare cost per drying cycle using askon prima series hand dryers (AS 45IR series & AS 25IR series), askon mach series hand dryers ASHMJ1 & ASHMJ2 and paper towels.

In the part 2, we calculate the ROI on askon prima series hand dryers and askon mach series hand dryers as compared to use of paper towels.

To be fair in our calculations and to give correct estimates to our clients, we always use the worst case scenarios so that the savings will always be more than calculated in this document.
Part 1 – Cost Saving & Comparison Calculation

The average cost per unit (Kwh) of power is Rs. 13 (according to 2016 data in Mumbai, inclusive of all levied taxes & surcharges)

A 1.4 KW Prima Series hand dryer will cost Rs. 18.2 for 1 hour of continuous operation. Considering it takes 30 seconds for a person to dry hands using askon prima series hand dryers, in 1 hour of operation, 120 people can dry their hands. Hence, it would cost Rs. 18.2 for 120 people to dry their hands which equates to 15.16 paise per drying cycle.

On the other hand, 120 drying cycles with paper towels will consume half a roll of paper towel, which will cost Rs. 300 which equates to Rs. 2.5 per drying cycle.

This indicates about 93% reduction with askon prima series hand dryers AS 25IR and AS 45IR in per drying cycle costs as compared to using paper towels.

Hand Dryer model ASHMJ1 & ASHMJ2 can dry hands in 15 seconds and 12 seconds respectively. Hence people can dry hands faster using half the power as compared to conventional hand dryers.

A 1KW Mach Series hand dryer model ASHMJ1 will dry hands of 240 people in 1 hour of continuous operation costing Rs. 13. Hence, it will cost 5.42 paise per drying cycle with model ASHMJ1.

A 0.7 KW Mach Series hand dryer model ASHMJ2 will dry hands of 300 people in 1 hour of continuous operation costing Rs. 9.1. Hence, it will cost 3.03 paise per drying cycle with model ASHMJ1.

This indicates 98% reduction with askon hand dryer models ASHMJ1 & ASHMJ2 in per drying cycle costs as compared to using paper towels.
Part 2  Return on Investment (ROI)
Yes it is an ‘investment’ not a ‘sunk cost’… and here is some quick calculation to prove our point! Here we have used list price of the hand dryer.
Your ROI can be better if:

If any discount is offered to you on the list price.

We have not subtracted from the hand dryer price, the money you would have otherwise spent on buying paper towel dispensers.

Labour involved in ordering and refilling the paper towel dispensers every day
As mentioned earlier, we are considering the worst case scenarios so your savings will always be better than calculated below.
ROI for Prima Series Hand Dryer Model: AS 25IR SB
Assume that you buy an askon Mach Series hand dryer AS 25IR SB for which you paid Rs. 13778.
The ROI for Rs. 13778 as compared to if you were using paper towels will be,
13778 ÷ ((2.5*120)18.2) = 49 hours of hand dryer operation

Where Rs. 2.5 is the cost per drying when using paper towels

120 is the number of drying cycles in 1 hour of continuous operation of hand dryer model AS 25IR SB.

Rs. 13 is cost of 1 unit of electricity in Mumbai as of April’16. Thus cost of operating AS 25IR SB for 1 hour is Rs. 18.2

Rs. 13778 is the List Price of hand dryer AS 25IR SB as of April 2016 excluding taxes.
Following are some conclusions we can make:

If the hand dryer is operated for 1 hour or 120 drying cycles of 30 seconds each per day, the cost of Rs. 13778 will be recovered in 49 days or 1.5 months as compared to if you were using paper towels for drying hands!! This is applicable for high volume facilities.

If the hand dryer is used for 30 minutes or 60 hand drying cycles of 30 seconds each, the cost of Rs. 13778 will be recovered in 98 days or 3.5 months as compared to if you were using paper towels for drying hands!! This is applicable for medium volume facilities.

If the hand dryer is used for 15 minutes or 30 hand drying cycles of 30 seconds each, the cost of Rs. 13778 will be recovered in 196 days or 6.5 months as compared to if you were using paper towels for drying hands!! This is applicable for low volume facilities.

Thus, after 49 days (if hand dryer used for 120 drying cycles everyday) there will be savings of Rs. 282 every 120 drying cycles using hand dryer model AS 25IR SB as compared to using paper towels.
ROI for Mach Series Hand Dryer Model: ASHMJ1
Assume that you buy an askon Mach Series hand dryer ASHMJ1 for which you paid Rs. 17867.
The ROI for Rs. 17867 as compared to if you were using paper towels will be,
17867 ÷ ((2.5*240)13) = 31 hours of hand dryer operation

Where Rs. 2.5 is the cost per drying when using paper towels

240 is the number of drying cycles in 1 hour of continuous operation of askon hand dryer model ASHMJ1.

Rs. 13 is cost of 1 unit of electricity in Mumbai as of April’16. Thus cost of operating ASHMJ1 for an hour is Rs. 13

Rs. 17867 is the List Price of hand dryer model ASHMJ1 as of April 2016 excluding taxes.
Following are some conclusions we can make:

If the hand dryer is operated for 1 hour or 240 drying cycles of 15 seconds each per day, the cost of Rs. 17867 will be recovered in 31 days or 1 month as compared to if you were using paper towels for drying hands!! This is applicable for high volume facilities.

If the hand dryer is used for 30 minutes or 120 hand drying cycles of 15 seconds each, the cost of Rs. 17867 will be recovered in 62 days or 2 months as compared to if you were using paper towels for drying hands!! This is applicable for medium volume facilities.

If the hand dryer is used for 15 minutes or 60 hand drying cycles of 15 seconds each, the cost of Rs. 17867 will be recovered in 124 days or 4 months as compared to if you were using paper towels for drying hands!! This is applicable for low volume facilities.

Thus, after 31 days (if hand dryer used for 240 drying cycles everyday) there will be savings of Rs. 587 every 240 drying cycles using hand dryer model ASHMH1 as compared to using paper towels.
ROI for Mach Series Hand Dryer Model: ASHMJ2
Assume that you buy an askon Mach Series hand dryer ASHMJ2 for which you paid Rs. 55000.
The ROI for Rs. 55000 as compared to if you were using paper towels will be,
55000 ÷ ((2.5 * 300)9.1) = 74 hours of hand dryer operation

Where Rs. 2.5 is the cost per drying when using paper towels

300 is the number of hand drying cycles in 1 hour of continuous operation of hand dryer model ASHMJ2

Rs. 13 is cost of 1 KWH of electricity in Mumbai as of April’16. Thus cost of operating 0.7 KW hand dryer ASHMJ2 for an hour is Rs. 9.1

Rs. 55000 is the List Price of hand dryer ASHMJ2 as of April 2016 excluding taxes.
Following are some conclusions we can make:

If the hand dryer is operated for 1 hour or 300 drying cycles of 12 seconds each per day, the cost of Rs. 55000 will be recovered in 74 days or 2.5 months as compared to if you were using paper towels for drying hands!! This is applicable for high volume facilities.

If the hand dryer is used for 30 minutes or 150 hand drying cycles of 12 seconds each, the cost of Rs. 55000 will be recovered in 148 days or 5 months as compared to if you were using paper towels for drying hands!! This is applicable for medium volume facilities.

If the hand dryer is used for 15 minutes or 75 hand drying cycles of 12 seconds each, the cost of Rs. 55000 will be recovered in 296 days or 10 months as compared to if you were using paper towels for drying hands!! This is applicable for low volume facilities.

Thus, after 74 days (if hand dryer used for 300 drying cycles everyday) there will be saving of Rs. 741 every 300 drying cycles when using the hand dryer model ASHMJ2 as compared to using paper towels.
Yours Sincerely,
Ankit Shah
Director  Marketing and Product Development
If any questions, please send email on ankit@askonhygiene.com