How can YOU afford a vorTEX/////doublebinder?
Many businesses look at production equipment like a small child that stares at an unaffordable toy through the toy store window pane. They know they want it, but they feel they can’t afford it. If this is how you feel about owning a vorTEX, you may want to consider the following:
A machine is only truly expensive if it doesn’t raise your bottom line, wouldn’t you agree? In other words, it is only expensive if it doesn’t earn you good money. It therefore follows that if a machine can make you money, you can usually find a way to afford buying it.
Can the vorTEX make you money?
Yes indeed! Here’s how: In South Africa, the price to perfect bind a book is usually between R3.50 to R6.50 per book. Since the cost of the glue, an operator and the electricity is so small, the profit component of a book bind is relatively high. But not only that, binding a book can be seen as that “something” which enables you to sell your printing.
Of what use is it, for example, if you can print beautiful pages at amazingly good prices, but the customer can’t get them in the form of a book? A vorTEX, then, helps you sell books. And books mean money.
Let us consider the math
At the prices quoted above, a vorTEX pays for itself once you have made approximately between 13,000 to 23,000 books.
That means it pays for itself simply on the basis of what you charge for the binding. If your vorTEX is financed partly out of your printing profit margins, then of course, your vorTEX may be paid after perhaps as few as 5,000 or 10,000 books.
This may sound like a lot of books to a small producer. But the figures show the truth more clearly: If your operator works slowly, he should be doing only 250 books per hour. Let’s use this as the basis for our calculation. To produce 13,000 to 23,000 books at this rate should take between 50 and 95 hours.
Working non-stop at eight hour a day shifts, this means your machine is paid for in as little as 6 to 12 days! And if your operator has been working at 300 books per hour, you’re look at 5 to 10 days.
How many machines can pay for themselves with so little production? Not many indeed! For the purpose of these calculations an ex-factory price has been used and full efficiency in daily shifts have been assumed, but the idea is to merely illustrate a principle: a machine is only as expensive as the amount of money it can make for you!
And that means that the vorTEX is extremely affordable indeed.
What about big finishing companies?
On the other hand, big producers are not accustomed to paying so little for binding machines. If this is you, then you may have entirely different reasons for investing in a vorTEX. You may be considering the following:
If you have a breakdown on a high production machine, how much is is the risk worth of missing a deadline, angering a customer and losing a contract? Is it worth the small price of a vorTEX or not?
Furthermore, when an important customer asks you to do a small job as a favour, how much is it worth to you to be able to please that customer by being able to answer: “Of course we’ll be glad to help you sir. Will there be anything else?”
Or will you rather try to come with excuses, or run the risk of outsourcing a small job, or even worse—run the risk of having the customer go to a more versatile opposition that he may just end up liking more? A vorTEX could dispense with much of these risks. Is it worth the investment?
Of course, even many large producers still do not offer layflat binding. Can you afford to turn away customers who request layflat books? If you had a vorTEX you could test the layflat waters the pleasant and affordable way first.
Perhaps the question, then, should be: "Can you afford NOT to have a vorTEX?"
What if I put my vorTEX under extreme production pressure?
The vorTEX was built for a full double shift per day, running at a rate of 200 books per hour. There are customers who exceed this rating. When you exceed the design parameters of a machine, some things are destined to fail.
One customer recently called to report that his machine had already burnt out three motors and he was concerned about it. Closer investigation revealed that he was doing more than four times the rated production on his machine. It was then pointed out to him that even after this prolonged abuse, he had sustained a repair bill of not even 8% of his binding profits, he was impressed. The more so when he realized that his profits paid for his vorTEX more than two times over every month!
That being the case, the customer felt very satisfied and concluded that he was more than happy to replace a motor once in a while in return for generating wild profits.
The vorTEX is a tough machine. It was designed to be operated in tough environments by tough people with tough expectations. The responsible owner will not abuse his machine by pushing it beyond the design parameters. But it is good to know that if it should ever be necessary, the vorTEX is a machine that can over-deliver.
But what if I really don’t have the money?
In his invaluable book, “Rich Dad, Poor Dad,” best-selling author Robert Kiyosaki argues that winners do not say: “I cannot afford it.” In stead, they ask themselves, “what do I need to do in order to afford it?”
Ideas on How to Afford a vorTEX
The vorTEX can be afforded in a number of ways. Here are but a few ideas:
· First secure the contract, then buy the machine
Trench-savvy entrepreneurs know when they can toe the line. Many a big manufacturer became big by taking on a job first, and quickly purchasing the required equipment afterwards. A contract in hand makes raising the capital so much easier.
· Finance it
Banks make money by lending cash to people like you who may be needed machines like the vorTEX. This is nothing new. Discuss it with your banker. Banks are quite willing to finance production machinery that can help their customers grow. Often banks contact Syncrom after finance application has been made. They confirm the type of product, the guarantees and support, and then make a decision. Usually the decision is positive.
An overdraft can be a great tool if used responsibly. An overdraft means being able to sign a cheque without asking the bank’s permission. If that big order is looming, your overdraft facility may be your key to owning the vorTEX that will make it all possible.
· Access your bond facility
Many banks offer a facility on existing bonds whereby a customer can deposit and withdraw funds into- or from a bond account freely. This is usually the most affordable form of finance available. And it can be one of the quickest and safest ways to obtained capital fast and without asking anyone’s permission.
Some distribution agents may offer rental options. Enquire from your dealer whether this option is available to you. Rentals are a great way of obtaining machines fast and with less hassle than going the financing route. Rentals are known for their tax advantages. For a nominal monthly rental amount the machine is yours until the rental period expires. After that, the user is normally able to purchase the machine outright, enter into a new rental agreement for a newer model, or simply move on.
· Access an untapped budget item
In large companies, a great way to access finance for something of affordable value such as a vorTEX is to scan the budget for an unutilized item. Near the end of the financial year it may be possible to obtain permission to divert funds from something where they were not needed, into a productive investment like a vorTEX. Managers are generally enthusiastic about diverting a dead-weight budget item such as “entertainment” to something such as “production equipment,” which can yield far more productive results.
· Sell unproductive equipment
Many businesses forget the value of selling old, obsolete equipment that is standing in their way and creates clutter. In many cases your vorTEX could be purchased cash by simply selling one or two old, worn out machines or odds and ends that probably won’t ever see production again.
· Be ingenious
In the world of finance there is no end to the ways of financing a project. The point is very simple—if you can see how a vorTEX can make money for you, you will be certain not to let cost be an obstacle.
If you have seen what a vorTEX can do for your business, do not let affordability stop you from owning one. If a vorTEX can make you money, there is always a way to make the purchase happen.
How can we help your business grow?