Gencotech  LASER  Marking         

Laser Systems , Vinyl Cutters, UV Printers and so much more.

Working out Cost and Profit on your Laser System. CO2 Cutting Series

This is one of the most frequently asked questions by the end user. Some end users under quote some over quote and others makes up a price that they feel is reasonable.

What do you charge when you do 1 engraving item?? What do you charge when you do a 1000??  

If you charge under cost, you will soon come to realize when you have to service the system or replace some parts, that you have not charged enough to cover this cost. People asking to much will loose clients to other laser engraving company's.

Why did you buy a laser system for your Company?? TO MAKE MONEY!!! Forget adding it as an extra because at the end of the day it will cost you more and wont be worth your while and who wants to loose money??

There is allot of questions around this topic and I am going to try and explain it in the most user friendly way for everyone.

There are 3 main points you must take in consideration when working out your cost and profit of your laser system.

- ELECTRICAL COST (Power usage of your laser system)

If you are unsure what the power consumption of your laser system is check on you laser system for a power consumption indication sticker. If you cant find one revere to your systems user manual.

GCC end users can check on the user manual on your installation disc, you received with your system. Alternatively you can go onto  www.gccworld.com and find your systems spec sheet. And if you are still unsure please contact our offices.

- SERVICING COSTS 

Ask your supplier for a consent form to check all the charges on the call out form

- WEAR AND TEAR

Make sure with your supplier witch parts needs to be replaced in a specific stage of your systems operation life. (Lenses, Belts, Bearings, Laser Tube etc.)

KM - Kilometer

KWH - Kilowatt Per Hour

p/h - Per Hour

p/m - Per Month

p/d - Per Day

p/y - Per Year

p/m - Per Minute

Put your costs into my formula below.


Electrical Cost

The cost of operating the laser can be easily figured out by plugging your electricity rates into the following formula using even one of our high wattage lasers, the X380 100 watt CO2 Cutting series system.

Typical Max power consumption = 1560 Watts (This is with full power, with the laser being constantly on.) If power costs R0, 768/KWH per unit in your area, it is costing R 1.19 p/h to operate the laser. (1560 x R 0.768)/1000 = R 1.19c p/h


Cost of the laser

Service

Once a year for wear and tear R 725,00 (call out) + as a example 61km (depending on how far you are from our office) X 2 ( to you and back) X R 3,85 p/km + R 1142, 50 (replacing X axis bearings for example) = R 2 362.20 p/y.

R 2362 .20 / 12 months = R 196 .85 p/m / 4 weeks =

R 49 .21 (cost per day) note: I included weekends and public holidays.

 

Average Life time of the 100W CO2 Glass Laser tube and cost.

4 – 5 years = approximately 8 – 10 000 working hours on 100% power 8 hours a day.

New laser Cost R 18 500, 00  (100W Glass Laser Tube)

R 18 500, 00c / 10 000 hours = R 1, 85 p/h


Now the biggest overheads of the system is covered so in general, if your systems runs 8 hours a day the cost p/day will be:

R 1,19 p/h X 8hours = R 9,59 (Electrical Cost) +

R 49,21(Service) + R 1,85 X 8hours p/d (Laser tube replacement)

R 68, 28 p/day based on 8 hours per day.(TOTAL COST)

PROFIT TIME

You charge R 6,50 p/m the system operates: This is the current going rate 27/05/2015.

R 6,50 X 60min = R 390,00 p/h X 8hours p/d = R 3120,00 p/d.

 

Please Note: All the charges excludes VAT, operator cost and your extractor fans power consumption.

Profit on your system:

Operating cost per year = R 68,28p/d X 5 days X 4 weeks X 12 months = R 16 387,20

Profit per year Excl. operator cost. = R 3120,00 p/d X 5 days X 4 weeks X 12 moths = R 936 000,00excl p/y.

R 9 36000, 00 – R 16 387,20 = R 919 612,80 profit p/y if the system runs 8 hours a day 5 days a week.

 

R 919 612,80 (total profit)

Wow!!

 

If you need any advice regarding the above please feel free to contact me at any time.