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Food for Thought - Rapids' Blog
When it comes to making a big purchase like a frozen beverage dispenser, analyzing your ROI (Return on Investment) can help make the buying process (and the fact that it involves investing a sizable amount of money) easier.
A ROI analysis looks at your initial investment, your production costs, and your net profit to see at what point your profits will outweigh the capital invested. In other words, it will tell you how many days, months, or years it will take for your purchase to pay for itself based on your business plan for it. An encouraging ROI can tip the scales in favor of your purchase, while an investment that takes a while to recoup the initial expense might make you rethink your decision.
When you choose to purchase the Grindmaster Cecilware Commercial Frozen Beverage Dispenser, the ROI makes it clear that this can be a good investment for your establishment.
Grindmaster Cecilware NHT2UL ROI Analysis
- Your initial investment in this product will be $2363 (price as of July 2017).
- Then, say your plan is to sell 16 oz. cups of your beverage for $2.00 a cup. If it costs $.40 to make the beverage, your production cost is going to be $.40.
- Subtracting your production cost from your selling price leaves you with a net profit of $1.60 per cup.
- If you sell 40 drinks a day, this dispenser will pay for itself in as little as 37 days! If you sell 20 drinks a day, it will return your investment in as little as 74 days! That’s less than 3 months!