Billing question

[Albert Nix]

I would like to poll any that is interested. What do you feel like is a realistic cost per hour that you allow to cover up keep on an average price machine include tube replacement. This is just the machine and not shop over head. I know there is a big differnce in the price of the machines so let's just say my MII which was around 18K. I guess it depends on how you look at it but 5 or 6 dollars and hour may be good right? I would like to hear from some of you guys that have been doing this for a while.
Thanks
Al

[Dan Hintz]

$5-$6/hr for upkeep?! At that extra rate, you'll have paid for the machine itself within the first year, nevermind pay for anything that broke. Figure closer to $1/hr...

[Albert Nix]

Thanks Dan But yeah I knew or at least I hope that $5 bucks an hour was way out side the box but I just wanted to get some feed back. I would hope that it is closer to .50 cents to a dollar.

[Mike Null]

Why don't you use the depreciation rate you use on your taxes?

[Michael Simpson Virgina]

If you purchase in 2009 you don't have to depreciate.

[Martin Boekers]

Albert,

are you talking just up keep or including the cost of the laser?

Is it past warranty? If so you can check with the manufacturer to see what the extended warranty cost is per year if offered. That should give you a pretty good idea of estimated repairs.

If you figured the "life" of your machine at 5 years (just an example)
not counting tax benefits and divide the cost by usage time you might get a clearer idea of the actual cost.

Say the laser you bought is 18k and take 8hrs a day 5 days a week 52 weeks a year you have 2080hrs a year, now multiply that times 5 years you get 10400hrs through it's lifetime. That comes to $1.73 per hour that covers the cost of the laser.

If you budget $2000(to keep it simple) a year for upkeep costs (which is more than you would ever need, the extended warranty on my Epilog 75watt EXT is about $2000 a year) so for the three years after the typical 2yr warranty expires that would be $6000 now divide that by useful life of of 5 years that would come to $.58 an hour over the 5 year period.

So in effect the cost of the laser with upkeep would be $2.31 an hour over a 5 year period.

This should give you a pretty good idea of where you stand cost wise.

Marty

[Albert Nix]

Thanks Martin that is good food for thought.