Cost versus Benefits

Manual Vs Automation.

There are a number of "what if's" involved, but if your employee base hourly rate is around $22/hr, then typically once they are doing between 1 to 3 hours of manual washing per day within your total business, then you would be better off with a rotary washer.

The variance between 1 - 3 hours takes into consideration the machine size. If you were to invest in a small SW800, then typically more than 1 hour per day and you will be cost neutral based on this measure, but likely ahead on the other two measures. As you invest in larger, more expensive models, then the break even point also rises.

Other factors that might be considered when investigating the break-even point:

Taxation. The above estimate assumed that the tax rate and therefore deductibility of manual washing (wages) vs full service rental are equal, hence it was ignored for the calculation.

Small businesses may be able to reduce their tax liability in year 1 via the Government 100% Instant Write Off provided by the Federal Government. Check with your financial advisor to see whether this applies or is of benefit to your business.

Safety & Environment.

Manually washing parts can be dangerous, especially where high pressure cleaning is being used. Employees will be coming into direct contact with spray, grime and chemicals (such as solvents). If you are not operating in a properly bunded area, you could also be unknowingly in breach of the Environmental Protection Act 1970, which could ultimately result in enforcement action from the EPA.

Morale. Often overlooked but possibly one of the more important aspects is happy staff. They will be more productive, safer and healthier, and in the end, who doesn't want their employees to be happy?

Your staff will appreciate the fact that you are making their work-life just a little bit more pleasant and hopefully realise that you are not just investing in a more profitable outcome for the business, but that you are also investing in their welfare.

In short, you should view the Washer as simply another employee. One that won't complain about being given the dirtiest jobs to clean, won't take a break, is happy to work all day plus overtime and will never take a sickie or ask you for a pay rise.

Want to discuss about acquiring a washer? Feel free to email, SMS or call.

Note that the above information is general in nature and therefore may not apply to your particular circumstance. You are encouraged to seek your own independent financial advice to confirm whether the above benefits apply to your business.