ROI: Brake Service - Brake Lathes

Oct. 1, 2006

Brake Lathes

Price to machine 1 rotor:	$20.00
Overhead Costs:	$2.00	Includes cutting tips and general shop operating costs
Labor Costs: (Based on a $25/hr. national average)	$6.25 $4.10	Bench-style lathe. On-the-car lathe.
Profit per rotor:	$11.75 $13.90	Bench-style lathe. On-the-car lathe.
Frequency:	32 rotors/month
Total profit/month:	$376.00 $444.80	Bench-style lathe. On-the-car lathe.
Cost of unit: (Bench-style) (On-the-car)	$6,000.00 $9,000.00	Composite average taken from all makes and models, although the difference in price will vary based on specific features.
ROI timeframe: (Bench-style) (On-the-car)	15.9 months 20.2 months
Average lifespan:	15 years
Profits over the unit's lifespan (not adjusted for inflation):	$61,680.00 $71,064.00	Bench-style lathe. On-the-car lathe.
NOW FILL OUT YOUR OWN RETURN ON INVESTMENT WORKSHEET
Price per service:
Overhead Costs:		What are your associated costs?
Labor Costs:
Profit per service:		Subtract overhead and labor costs from the price you charge.
Frequency:	jobs/month
Total profit/month:		Profit per service multiplied by frequency.
Cost of unit:
ROI timeframe:		Cost of unit divided by profit/month.