Equipment Affiliateship for Testing Services

The Equipment Affiliateship was established to provide additional value to industrial clients who anticipate testing services that require large amounts of equipment usage fees within a twelve-month period. There are three levels of the Affiliateship Program with three increasing levels of discounts.

1. $1,000 Annual Affilateship arrow 25% Reduction in Equipment Usage Fees
2. $2,500 Annual Affiliateship arrow 30% Reduction in Equipment Usage Fees
3. $5,000 Annual Affiliateship arrow 35% Reduction in Equipment Usage Fees

Here’s how it works: The industry will purchase an annual affiliateship level that they anticipate to draw from over the next twelve months and submit a lump sum payment to the Center for Manufacturing Research prior to testing services. As testing projects are undertaken, the costs of the projects will be subtracted from the amount remaining in the affiliateship with the corresponding discount reflected in equipment usage fees.

For example, Acme Industries has purchased a $1,000 Equipment Affiliateship effective August 1, 2005. Their initial request for testing comes in April for preparation of three samples and two hours of ESEM work. The total cost for this testing in both scenarios is as follows:

Normal Testing Charges $1,000 Affiliateship
Testing Charges
(3 specimen x $80/ specimen) $240 (3 specimen x $80/specimen) $240
(2 hours x $130/hr) $260 (2 hours x $130/hr) $260
Subtotal $500 Subtotal $500
Indirect (25% of Subtotal) $125 Minus 25% Discount* $95
Total Testing Charge $625 New Subtotal $405
Indirect (25% of New Subtotal) $101
Total Testing Charge $506

The $506 charge would be deducted from the available $1,000 affiliateship resulting in a balance of $494 in the affiliateship amount. This balance would continue to be reduced with additional testing until it reaches a zero balance or another affiliateship is purchased. If the affiliateship is not used up within a twelve-month time period, subsequent testing after the twelve-month anniversary date will no longer be eligible for discounts on the equipment usage but the balance in the affiliateship will still be available for testing charges.

*Equipment usage charges include $40/specimen for mounting and $130/hr for ESEM or $380.