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Cost & Return
on Investment: With economics over the
past few years, most printers have deferred upgrades or replacement of
ageing presses. And in an era of industry
consolidators, many smaller & privately held companies may feel
left behind in this capital-intensive industry. But being competitve in
today’s printing industry requires the right equipment, with the right
features. And your overall budget
considerations may include other upgrades such as direct-to-plate or
other pre-press, bindery, etc. Even at today’s low interest rates, your
money only goes so far. Can a two or three
year-old press with exactly, or essentially, the same features be as
effective as a new one? Is a new press
worth 20-40% more? Lets consider a
hypothetical example: Profit Printing is
considering the purchase of a Six-color 40-inch press.
Profit has narrowed its options to either a new press for The additional cost of $
750,000 over 7-years at 7.0% will require an additional monthly
installment of over +$ 11,250/mo, or +$135,000 annually. Based on a 25% gross
margin, Profit Printing would need to generate approximately $1.45
million in revenue to cover the new press P&I.
Alternatively, the company would need to generate only
$900,000 annual revenue, -38% less, to justify the pre-owned option. Again considering the cost difference, the
company would need to generate an additional $45,000 per month ($540,00
annually) in revenue or cost savings to justify the new press. If each press offers
essentially the same capabilities and operating results, wouldn't that
extra $500,000 look better on your bottom line. Please try one of our Financial
Calculators for example amortization and comparative
cost analysis. |
How
can we help you? If you would like us to
contact you regarding equipment needs for your business or
organization, please let us know by clicking here. Equipment
Availability For a look at a currently
available printing equipment list, click here, or at the search
link at left. Special
Offers
Our
Customers Check out recent events
with some of our users. ►
Coming Soon ►
Coming Soon Further
Considerations Are you still weighing
the pros and cons of purchasing pre-owned equipment? Here are some
considerations for you to review: (800)
262-5115 (972)
562-8000 Fax (972) 562-8162 |
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