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. |
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| 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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