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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 X | BRAND Y | BRAND Z | | PRICE | $62,000 | $68,000 | $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 |
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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 | 3.90/gal (gas) | 4.75/gal (diesel) | 3.90/gal (gas) | | Fuel Cost/Mile | $.39/mile | $.24/mile | $.26/mile | Fuel Cost/Day (50 miles/day)
| $19.50
| $11.88
| $13.00
| | Generator Fuel Cost/Day (@ .9 gal/hr) | $28.08 | $0.00 | $0.00 | | Idling Engine FuelCost/Day (@.6 gal/hr) | $0.00 | $22.80 | $0.00 | Inverter Cost/Day (@12.1 kwh/day)
| $0.00
| $.70
| $1.40
| | Generator Ownership & Operating Cost/Day | $16.80 | $0.00 | $0.00 | | Idling Engine Ownership & Operating Cost/Day | $0.00 | $20.16 | $0.00 | Inverter Ownership & Operating Cost/Day | $0.00 | $4.00 | $8.00 | | | | | | | Depreciation Cost (@ 15%/yr) | $9,300 | $10,200 | $8,250 | Depreciation Cost/Day (250 work days/yr)
| $37.20
| $40.80
| $33.00
| | Purchase Price | $62,000 | $68,000 | $55,000 | | Sales Tax @ 6.5% | $4,030 | $4,420 | $3,575 | Total Price w/Sales Tax
| $66,030
| $72,420
| $58,575
| | 20% Down Payment | $13,206 | $14,484 | $11,715 | | 7% Lost Return On Your Down Payment | $924.42 | $1,013.88 | $820.05 | Lost Return/Day (250 work days/yr)
| $3.70
| $4.06
| $3.28
| | Loan Balance After Down Payment | $52,824 | $57,936 | $46,860 | | Monthly Payment (60 mos @ 9%) | $1,096.54 | $1,202.66 | $972.74 | Loan Cost/Day (250 work days/yr)
| $52.63
| $57.73
| $46.69
| SUMMARY OF DAILY COSTS
| | Van Fuel Cost | $19.50 | $11.88 | $13.00 | | Electricity Cost (fuel) | $28.08 | $23.50 | $1.40 | | Electricity Cost (ownership & operating costs) | $16.80 | $24.16 | $8.00 | | Depreciation | $37.20 | $40.80 | $33.00 | | Lost Return On Your Dn Pmt | $3.70 | $4.06 | $3.28 | | Loan Cost | $52.63 | $57.73 | $46.69 | | --------- | --------- | --------- | | | $157.91 | $162.12 | $105.37 | | | | | | | Additional Cost/Day to own Brands "X" and "Y" | $52.24 | $56.75 | | | Additional Cost/Pet to own Brands "X" and "Y" | $8.76 | $9.46 | | | Additional Grooms/Yr to own Brands "X" and "Y" | 263 | 284 | |
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Grooming is a joy – but do you really want to groom an extra 263 pets each year for the “privilege” of owning Brand X - or an extra 284 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 over 8 weeks each year for free? Brand Y is even worse. You will have to work over 9 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 $7,500 higher than Brand Z, and it costs an extra $13,135 dollars each year to operate. Brand Y, is priced almost $14,000 higher than Brand Z, and costs an additional $14,187 each year to operate. What does that mean to you, over time? In the first five years of ownership, Brand X would cost $67,166 more, and Brand Y would cost $73,702 more, 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!” We offer the alternative that will allow you to do just that. Let's not stop yet. Let's take this savings idea a couple of steps, further. First, it's easy to see that Brand Z will save more than enough money each month to make its own payment. That's right! In the example, above, the payments for Brand Z are only $972.74 per month, or $11,672.88 per year. However, when compared to Brand X and Brand Y, Brand Z saves $13,000 to $14,000 per year. But what would happen if you actually invested the money Brand Z saved you? Could you do that? Think about it. If you purchase Brand X or Brand Y, you will have to give up that much money each day, anyway. So, why not purchase Brand Z and invest those savings? If Brand Z saves you $52.54 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 $122,809.26! That's not bad, but It gets better. If you choose Brand Z over Brand Y, and if you invest the $56.75 Brand Z saves you, you could cash in a $132,649.90 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 almost two Brand X vans or two Brand Y vans - for cash!
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