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Advice on making an Investment please?
When you are about to invest in new machinery and you put your thinking hat on before deciding. How do you go about it number wise?
The insight that I’m looking for is what foundations/economic principles you relay on when doing a purchase. What I then mean is for example:
Let say I lease a Roland machine package (Printer +laminator+rip) for 25000 Euros.
The leasing is done for 3 years and the monthly cost ends up to be 550 Euros/month.
How much work approximately would you be looking into getting in from that machine per month to cover cost and to leave you with profit?
Cost = expenses (machine, the operator, usage, and so on)
Or do you look at this in another way?Ps. I’m really looking forward to reading your comments. I would truly appreciate it!
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2 Replies
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In my opinion you are never going to get an answer that is of much meaning or use to this question as it will not accurately relate to your situation.
You need to factor in how much work you have for the machine and how much of the time it will actually be working. (like everyone going down this route you like to think it will be going all day everyday but it takes a while to get to that stage!) Then you need to look how much overheads and wages etc you need to cover the machine when its running. ie someone with a large print facility will need a completley different amount for their printer than a one man band doing the odd print here and there.
Profit for me comes after all this however you will find that a lot of signmakers look at profit as their wages not what is left for the business after everything is paid!
If I were you I would work out my worst case scenario assuming that you will do approximately X metres of print work per week and see if by charging the going rate in your area for print work will this cover:
1. running/print costs
2. a basic wage for you or an operator
3. lease costs
4. and then profitFor me it must cover all of these but if you are financially sound then I would be happy with the first 3 and go for it on the basis it will improve the business enough to eventually generate profit once you get it up a running.
That is just my two cents for what its worth!
good luck!
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Thanks Ruairi!
I get your point.
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