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Digital printing decal capabilities
- Thread starter MGHSIGNS
- Start date
jiarby
New Member
if it takes years to pay off a $13k anything then you are not selling enough! Take the jobs and sub them out until you are doing enough volume.
a couple big jobs can pay for the whole thing. I got a customer that wanted 100x 5x5 banners. (no, not a nigerian pastor!) That paid for most of my Mutoh 1604 with the very 1st job.
If an expensive tool makes you a profit then buy it!
a couple big jobs can pay for the whole thing. I got a customer that wanted 100x 5x5 banners. (no, not a nigerian pastor!) That paid for most of my Mutoh 1604 with the very 1st job.
If an expensive tool makes you a profit then buy it!
gnatt66
New Member
i waited till i had enough business (STEADY) and a couple really good clients before i took the plunge. and it has REALLY worked out for me, atleast. i have low overhead, and have been living on my shop's profits alone for atleast 2 months now. I have a fall back job (my sign shop is in with another business) so it's ideal for me pretty much, which made me feel confident enough to get an in house printer.
Letterbox Mike
New Member
In all reality, if you can't pay for it in 2-4 months you shouldn't buy it. That doesn't mean you should actually pay for it in that time frame, but if it doesn't or can't generate enough profit to actually pay for itself in that short amount of time, you are probably not ready to make the investment. We lease all of our equipment to help spread out cash flow, but I won't bring in a machine if I'm not 100% confident it could pay for itself almost immediately (my rule for my company is if it can't generate the profits to pay for itself in no more than 3 months I won't buy it), regardless of how we actually buy it.
If this is your first printer and you haven't started to cultivate that market enough to justify the purchase, start selling the service and outsource it until your profits are steady over 3-6 months and are high enough that you could pay for the machine in a few months. A big mistake people make is taking the "field of dreams" approach... "if I buy it, the business will follow". This may be true for some industries, but it's not really for the sign business (yes, you may pick up some additional business when people hear you have the capability, but not nearly enough to justify the purchase).
If you bring printing in house and you are only able to generate an additional $500-$1000 per month in profits, that will cover your additional overhead (lease payment, etc.) on the equiment, but you're not making anything and you'd be better off outsourcing until you are generating at least 2-3 times that amount.
If this is your first printer and you haven't started to cultivate that market enough to justify the purchase, start selling the service and outsource it until your profits are steady over 3-6 months and are high enough that you could pay for the machine in a few months. A big mistake people make is taking the "field of dreams" approach... "if I buy it, the business will follow". This may be true for some industries, but it's not really for the sign business (yes, you may pick up some additional business when people hear you have the capability, but not nearly enough to justify the purchase).
If you bring printing in house and you are only able to generate an additional $500-$1000 per month in profits, that will cover your additional overhead (lease payment, etc.) on the equiment, but you're not making anything and you'd be better off outsourcing until you are generating at least 2-3 times that amount.
SurfaceSigns
New Member
The first thing I ask myself before buying anything outside of my core business is "Can I afford to pay for this item if it doesn't produce a dime of revenue?" If I am comfortable with the payment amount, and confident that it WILL produce revenue, I'll take the plunge. If not, the idea goes on the back burner for future consideration. However, I never expect to re-coupe my total investment in 3 months in any business. Sometimes, it takes time to build a brand, and there are always additional costs of operating that you didn't account for.
As to paying for the purchase, the other option to keep the payments low is a Line of Credit. I purchased our VP-540 on a LOC at 2.75% interest, putting my monthly interest payment at around $35. If it's a slow month, the payment is minimal, and if it is a good month, I can pay down the principle without penalty.
As to paying for the purchase, the other option to keep the payments low is a Line of Credit. I purchased our VP-540 on a LOC at 2.75% interest, putting my monthly interest payment at around $35. If it's a slow month, the payment is minimal, and if it is a good month, I can pay down the principle without penalty.
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Ken
New Member
What Insignia said....
I wouldn't try to steer you away from a print/cut...like a Roland or Summa...just be prepared to pay it out before profit...Really, in a good market enviroment..you should re-coup the expense within 6 to 12 months.
However...
Off the top of my head...I would say ..buy it!
It's a go-for-it mentality that I have worked with for most of my life...It's just me I guess....
Cheers!
Ken
I wouldn't try to steer you away from a print/cut...like a Roland or Summa...just be prepared to pay it out before profit...Really, in a good market enviroment..you should re-coup the expense within 6 to 12 months.
However...
Off the top of my head...I would say ..buy it!
It's a go-for-it mentality that I have worked with for most of my life...It's just me I guess....
Cheers!
Ken
S
scarface
Guest
I am now in very bad situation with business being DEAD and bought my machine outright. I'm sure glad i did this so I'm not eating a $300 payment or more a month with it sitting.
I wouldn't pay on it but that's just my personal opinion. Me being as small as i am, thinks buying it outright saves you in the long run if you can do it.
Good luck and happy printing!
I wouldn't pay on it but that's just my personal opinion. Me being as small as i am, thinks buying it outright saves you in the long run if you can do it.
Good luck and happy printing!
