|
|

|
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 X | BRAND Y | BRAND
Z | PRICE | $62,000 | $74,000 | $55,000 | at least 50 gal fresh
water | yes | yes | yes | at least
50 gal grey water | yes | yes | yes | hydraulic/electric table | yes | yes | yes | integral vacuum/clipper | yes | yes | yes | full sized tub | yes | yes | yes | hot water on board | yes | yes | yes | ample bottle/jug storage | yes | yes | yes | ample wet towel storage | yes | yes | yes | excellent lighting | yes | yes | yes | generator power | yes | no | no | inverter power | no | yes | yes |
|
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 X | BRAND
Y | BRAND Z | Fuel Economy | 10 mpg | 20 mpg | 15 mpg | Fuel Price | 2.65/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" | 229 | 320 | |
|
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!
|
|