flatbed/cutter expense calculation/advice

[jkdbjj]

So for the new year we are considering adding this combo. I am currently getting quotes on a future combos, and I have a general question for those that have successfully added these to your operation.

Did you invest in marketing your new services, or did you simply start switching customers products from your old machines to the new flatbed?

Anyone do open houses successfully on here, and did you invite your vendors to help educate the crowd?

Do you regret or think not as highly of your purchase after enough time has passed to get use to having the machines at your place?

Finally, prototyping packaging, how big a role does that play in your product mix?

Those are my questions. Now my reason for moving forward with this purchase, is I realized over 80% of my current product involves printing and mounting, which then utilizes people to mount, sometimes laminate, then trim etc... It seems over a year, that has to add up to a number that justifies the expenditure, on top of a fresh marketing campaign, I anticipate it being a great move.

Anyone else on the fence, or recently done this? Advice?

 

[MikeH]

Great question. difficult answers, I'll try to be brief.
Always talk about the new stuff, try to get some interest in the new, and the possibilities. If for no other reason it shows you are investing in your business.
Do you switch people over without telling them? Maybe , maybe not, do you think you are going to see a cost savings? Will the final product be better or the same? If the material cost will remain about the same the only gain is in labor, reduced labor, and that savings is un-known. What is known is whatever savings you have better offset the cost of the equipment over its life cycle or you have gained nothing.
Open houses are another two edged sword. My grandfather put in a new automated press and held an open house to show it off. Most of his customers came, after hours, open bar, printing industry in the fifties. His three biggest clients all gathered around the new sleek modern easy to run press and decided, that look pretty easy and all bought one for themselves. The moral sometimes it is a good thing for the wizard to stay behind the curtain. You are the only one to judge your customers and if it will help or hurt your business. Keep in mind telling them about it when you make a sales call will probably create in their minds eye a larger more complicated and more expensive investment on your part than it really is.
As fare as you vender attending . Why? You and your staff need to be operating the equipment if your customers are going to trust you. the sales guy gets paid to do one thing, sell his products. You already paid for yours. He is going to be walking around doing what he needs to do to stay in business developing new leads to sell more machines.
"Do you regret". I would say an owner with no regrets took no risks.
Prototyping? What % of your excising customer base needs this service? And of the ones that do, where are they getting it now? If you cannot answer you may need to work under the assumption you will get little to nothing from this segment. It is easier to sell more to existing customers than to find new ones. And most people will only move jobs if the other guy makes a mistake.
It is really good to see a business owner excited about growing their company in this economy, thank you I needed a little optimism today. It my comments appear to be a downer they were not intended to be. I am not trying to rain on the parade. They are good questions and my reply was intended as a gut check. Good luck!!

 

[rjssigns]

Look up the term Opportunity Costs. Understand this term and what it means to your business in terms of capital expenditure(i.e. flatbed). Next term to understand is ROA or return on asset(s).

To get you started:
Opportunity Costs=The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

ROA tells you what earnings were generated from invested capital (assets). This is why when using ROA as a comparative measure, it is best to compare it against a company's previous ROA numbers or the ROA of a similar company.

These are factors to be considered before any capital expenditure. Best I could do on short notice too.LOL

 

[HulkSmash]

What done it for us. We spend thousands in Sign vinyl a month. That thousands can be turned into a payment, and i can put more money in my pocket. Not to mention i can do it faster, and more efficiently.

Weigh your pros or cons.

 

[jkdbjj]

Mike H, I appreciate you reaching out with such a reply. Plenty to think about for sure. Gut checks are the best medicine I suppose

RJS, I admittedly don't know how to do all of that, so obviously I need to look into that kind of assessment. Thank you.

Colorado, so are you saying you are using a flatbed now? If I read that correctly, you are, and it sounds like for many of the same reasons I am considering it. I spend sometimes 5-10k a month in rolls of vinyl. Surely that would cover the cost of a flatbed and even a cutter I suppose. This is one of the key factors in making the decision. Good to hear you did the same thing, if I read that correctly.