Sign & Digital Graphics

November '12

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Page 59 of 106

Analyzing Dye-Sub ROI This break-even point graphic (provided by Global Imaging) is a tool that is used to evaluate return on investment (ROI) of dye-sub systems by examining many variables including monthly equipment payment, employee cost, monthly rent and other administrative expenses as fixed costs per month with sales and marketing as variable costs. These are for the first year of operation in a five-year lease. The printer consid- ered in this example is a PrinterEvolution Evo33 dye sublimation printer (the "com- plete" cost listed includes a Caldera RIP, Klieverik calendar press and training). The assumed average sell price per square foot is $6.13. Nationally it seems to vary from $3 to $20 per square foot depending on location, competition etc. Printer capacity is about 112,839 sell- able square feet per month, operating seven hours per day, 22 days per month at 916 average square feet per hour. This analysis shows that breakeven is achieved as production reaches approxi- mately 2 percent of machine capacity. Gross margins in the 50 percent range are achieved at approximately 4 percent of machine capacity, and are maintained well above that level at all higher pro- duction levels. Total system payoff is achieved in 23.6 months, if maintaining a 100 percent run rate through that period. Breakeven production is achieved in 0.3 days. These are realistically developed estimates, however as with all estimates, your return may vary. Selling Used Equipment? Contact Global Garage. The worldwide marketplace for buying and selling used grand format equipment. 800.787.9802 Our Brands • Everything You Need for Wide and Grand Format Success Use INFO # 159 SIGN & DIGITAL GRAPHICS • November 2012 • 53

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