By working alongside a number of clients, I have noticed how multiple business goals may influence us to purchase a new extrusion line.
Here are the most frequent ones:
- you might want to expand your current business
- or maybe develop a new turnover opportunity, for which you need a machine you don’t have now
- you want to replace technologically outdated, obsolete equipment not allowing for specific machining or that requires too much labour compared to your staff’s workload
- you want to eliminate the costs (which are sometimes hidden) deriving from machine downtime at the end of its service life
- or you want to save on energy costs and switch to a more energy-efficient system
In any case, purchasing a new system is always an important corporate decision: choosing the most suitable machine means either fully achieving your goal or wasting valuable company resources.
But are there objective parameters to choose the “right” machine?
Yes, there are.
Indeed, in this email and in the next ones we will examine the ones that, based on our decades-long experience on the market, are the main OBJECTIVE criteria on which you should base your decision. Of course, we will also see the benefits provided by Bausano machines in relation to each of these figures.
So here are the 3 main criteria to consider:
- the ROI, Return on Investment
- the Break-Even Point (o Payback Period)
- the Product Life Cycle.
These elements are connected to each other and will help you decide whether to make an investment or outsource the production of a job order, whether to invest your own capital or resort to financial options to request a loan or a leasing agreement, and so on.
Today we’ll define the individual elements.
- The Return on Investment (ROI) is a benchmark used to assess the profit on an investment compared to the initial amount invested.
- The Break-Even Point (BEP) or Payback Period (PBP) is an estimate of the time it takes (usually months or years) for equipment to pay itself back.
- Product life cycle: this is the number of years for which a machine can operate.
- The machines made by Bausano set an unrivalled international benchmark when compared to any other manufacturer in the world in all these areas.