“When purchasing any capital equipment, a business should always consider the ROI and payback period along with the asset’s ability to scale with business growth,” explains Conquest’s Finance Manager Joshua Doxey.
Return on Investment (ROI)
The ROI is a measure used to determine the profitability of an investment. It calculates the difference between the outlay and what you get back. ROI is usually presented as a percentage and can be a positive or negative number.
When calculating the ROI of a floor cleaning machine, we price the cost of labour into the amount of time saved. Quicker, more efficient floor cleaning reduces the need for additional paid labour, which saves companies money.
Therefore, the question is often not whether to buy a cleaning machine, but what size best suits your needs and achieves the highest ROI. For example, a smaller machine requires a lesser initial spend, but over the long term a larger machine may be a more prudent investment.
This is because a bigger machine has an increased cleaning path and a longer run time. As a result, it can cover a vast area faster than a smaller machine, increasing productivity and reducing labour time.
Even factoring in the higher cost of the asset at an additional $20,000, a larger sweeper will pay for itself after a little over a year, thanks to its increased efficiencies and reduced labour costs. Therefore, it proves to be the more economical option for cleaning a larger facility.
At Conquest, we provide the clever way to clean; we always ensure you have the right machine to suit your floor cleaning needs. We have the tools to calculate your ROI quickly and easily. Contact us today on 1800 826 789 to discover the return on your next floor cleaning investment.