VAN CONVERSIONS, LLC
 
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DOES THE PRICE YOU PAY FOR YOUR NEW MOBILE GROOMING VAN REALLY MATTER THAT MUCH?

YES!

How could a mobile grooming van manufacturer convince you that paying an additional $15,000 to $20,000 will improve your bottom line? Wouldn’t they have to demonstrate that their product would make you more productive? How will paying a higher price for their van guarantee higher productivity for you? The answer is: It won't! The only thing a higher price guarantees is that you must be more productive in order to afford the higher payments. We could, also, look at the other side of the coin. Let's suppose you don't want to work harder (be more productive). What is the only other way to afford the higher priced van? That's right - higher customer prices. Of course, customers won't mind paying more as long as you explain that the higher prices are for a good cause - like paying for your new, higher priced, mobile grooming van. It's a rediculous premise, isn't it? The fact is, paying more for a van, with similiar features and productivity, always puts you at a competitive disadvantage! You work harder or your customer pays more - just to make the higher payments. Either way, it's a lose - lose situation. So, who wins when you pay more for your most costly grooming tool? Is it your family - or the family of the mobile grooming van manufacturer?

We have all met "razzle dazzle" salesman who try to sell the “sizzle” rather than the "steak." They employ a variety of techniques to try to get you emotionally - rather than intellectually - involved in the buying process. We believe the decision you make will have a great deal of bearing on whether your mobile grooming business is a success - or not. Therefore, we suggest that you do an objective analysis. Work through the numbers and decide which mobile grooming van has the best odds of improving your cash flow. When you do, we believe you will agree that it makes more sense to ignore the “sizzle” and to purchase the “steak.” Let’s take a few minutes to look at some examples of the similarities and differences you may find in three mobile grooming vans:

BRAND XBRAND YBRAND Z
PRICE$62,000$74,000$55,000
at least 50 gal fresh wateryesyesyes
at least 50 gal grey wateryesyesyes
hydraulic/electric tableyesyesyes
integral vacuum/clipperyesyesyes
full sized tubyesyesyes
hot water on boardyesyesyes
ample bottle/jug storageyesyesyes
ample wet towel storageyesyesyes
excellent lightingyesyesyes
generator poweryesnono
inverter powernoyesyes

If all three vans are equipped the same, wouldn't you be equally productive with any one of them? The answer is: You certainly should be. Perhaps in the past, before there were so many full featured alternatives, one brand may have outperformed the others. You may even want one brand more than another - but the all important question is: Which mobile grooming van will enable you to keep more of what you earn? Let’s look at the bottom line:

BRAND XBRAND YBRAND Z
Fuel Economy10 mpg20 mpg15 mpg
Fuel Price2.65/gal (gas)2.65/gal (diesel)2.65/gal (gas)
Fuel Cost/Mile$.27/mile$.13/mile$.18/mile
Fuel Cost/Day (50 miles/day)

$13.25

$6.63

$8.83

Generator Fuel Cost/Day (.9 gal/hr)$19.08$0.00$0.00
Idling Engine Fuel Cost/Day (.9 gal/hr at 1800 RPM)$0.00$19.08$0.00

Inverter Fuel Cost/Day (@12.5 kwh/day)

$0.00

$.73

$1.45

Generator Ownership & Operating Cost/Day$20.96$0.00$0.00
Idling Engine Ownership & Operating Cost/Day$0.00$22.40$0.00

Inverter Ownership & Operating Cost/Day

$0.00

$4.56

$7.76

    
Depreciation Cost (@ 15%/yr)$9,300$11,100$8,250
Depreciation Cost/Day (250 work days/yr)

$37.20

$44.40

$33.00

Purchase Price$62,000$74,000$55,000
Sales Tax @ 6.5%$4,030$4,810$3,575
Total Price w/Sales Tax

$66,030

$78,810

$58,575

20% Down Payment$13,206$15,762$11,715
7% Lost Return On Your Down Payment$924.42$1,103.34$820.05
Lost Return/Day (250 work days/yr)

$3.70

$4.41

$3.28

Loan Balance After Down Payment$52,824$63,048$46,860
Monthly Payment (60 mos @ 9%)$1,096.54$1,308.77$972.74
Loan Cost/Day (250 work days/yr)

$52.63

$62.82

$46.69

SUMMARY OF DAILY COSTS

Van Fuel Cost$13.25$6.63$8.83
Producing Electricity (fuel costs)$19.08

$19.81

$1.45
Producing Electricity (ownership/operating costs)$20.96$26.96$7.76
Depreciation Cost$37.20$44.40$33.00
Lost Return On Your Down Payment$3.70$4.41$3.28
Loan Cost$52.63$62.82$46.69
---------------------------
 

$146.82

$165.03

$101.02

    
Additional Cost/Day to own Brands "X" and "Y"$45.81$64.01
Additional Cost/Pet to own Brands "X" and "Y"$7.63$10.67
Additional Grooms/Yr to own Brands "X" and "Y"229320

Grooming is a joy – but do you really want to groom an extra 229 pets each year for the “privilege” of owning Brand X - or an extra 320 pets per year for the “privilege” of owning Brand Y? At $50.00 per pet, that’s how many extra pets you will have to groom just to cover the additional costs associated with Brand X and Brand Y. Here is another way to look at the same set of facts: When compared to Brand Z, the extra costs associated with Brand X mean that you must work almost 8 weeks each year for free? Brand Y is even worse. You will have to work over 11 weeks each year for free.

Our original question was: "Does the price you pay for your new mobile grooming van really matter that much?" Here is the answer: Brand X is priced about $7,000 higher than Brand Z, and it costs an extra $11,452 dollars each year to operate. Brand Y, is priced almost $19,000 higher than Brand Z, and costs an additional $16,004 each year to operate. What does that mean to you, over time? In the first five years of ownership, Brand X would cost $58,751 more ($11,452 x 5 years = $57,260 + $1,491 extra down payment), and Brand Y would cost $84,065 more ($16,004 x 5 years + $4,047 extra down payment), than Brand Z. Wouldn’t it make more sense to put that money in your bank account? We believe the answer is a resounding, “Yes!” Van Conversions offers the alternative that will allow you to do just that.

But let's look at one more aspect of this analysis. What would happen if you actually invested the money Brand Z saved you? Could you do that? Well, if you purchase Brand X or Brand Y, you will spend an extra $11,452 (for Brand X) or $16,004 (for Brand Y). So, why not purchase Brand Z and invest those savings? If Brand Z saves you $11,452 per year ($45.81 per day), when compared to Brand X, and if you invest your savings in a CD that pays you 5% interest - at the end of 5 years you could walk into the bank and pick up a check for $67,997.56! That's not bad, but it gets better. If you choose Brand Z over Brand Y, and if you invest the $16,004 ($64.01 per day) that Brand Z saves you, you could cash in a $95,012.53 CD!! So, what is a groomer to do if he/she really wants to purchase Brand X or Brand Y? Purchase Brand Z, instead. That's right. Resist the urge to buy Brand X or Y for five years. At the end of that time, you should have saved enough money to buy a brand new Brand X or Brand Y van - for cash!