ROI: Wheel Balancing

May 12, 2006
Wheel balancing.

ROI: Wheel Balancing

Price per service: $50.00 Balance and rotate 4 tires.
Parts/Supplies: $6.00 Overhead costs, wheel weights.
Labor Costs: $10.00 (Based on an average hourly wage of $20.00.)
Profit per service: $34.00
Frequency: 12 jobs/month.
Total profit per mo: $408.00
Cost of unit: $3,200.00 Composite average taken from all makes and models. Wheel balancing machine costs can differ greatly based on the degree of electronic operation, range of tires it's capable of handling, etc.
ROI timeframe: 7.8 months
1st year profits: $1,696.00
Annual profits: $4,896.00

Now fill out your own Return On Investment worksheet.

Price per service:
Parts/Supplies costs:
Labor Costs:
Profit per service: Subtract parts/supplies and labor costs from the price of the service.
Frequency: Number of jobs performed monthly.
Total profit per month: Profit per service multiplied by
frequency.
Cost of unit:
ROI timeframe: Cost of the unit divided by profit per month. This shows the number of months before the cost of the unit is recouped.
1st year profits: Profit per month multiplied by 12, minus the cost of the machine.
Annual profits: Now look at that number before the cost of the machine to see how much profit the unit should produce going forward.

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