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I’m trying to make a point to someone, so any educated guesses about how much it costs to make a Servis washing machine selling at £189.99? Taking the VAT off it’s around £161.69. How much would a multiple pay for it? And how much did it cost to make it after transportation costs etc.?
Re: How much would it cost to make a Servis washer?
I seem to recall someone having a go go at this topic a while ago, whether it was here or somewhere else I can`t remember. IIRC £60 was about the figure mentioned. Taking things like a one year warranty, The cost of Head Offices and staff, transportation and not to mention the credit facilities at the bank. Not a lot really 😕
Or was I dreaming :rolls:Don
Re: How much would it cost to make a Servis washer?
General profit margins on whites (mid/top range) is 30{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}, i’d expect there to be practically nothing in cheaper end.
Re: How much would it cost to make a Servis washer?
The primary cost to manufacture a typical Servis machine is ultimately based on ‘quota’ in other words the total number of machines the contract will guarantee volume sales. In most cases contracts involve several thousands of units to be manufactured running into 6 figure sums.
Demand these days for this product level runs into unimaginable numbers of machines and high profit margins at all levels. And it will therefore follow that the cost of producing those tens of thousands of units divided by the cost to manufacture to be minimal (per unit).
Just as a wild guess on my part on a Servis machine for sale on the High Street in the UK for around £199.99, will probably have cost in the region of £35 to produce? 😕
Re: How much would it cost to make a Servis washer?
Landed cost per container will be about £80-110 excl onward shipping etc. This also doesn’t take account distribution, warranty costs etc. or quantity discounting.
Factory gate price, £60-70 at a “best guess”.
On that kind of product you’re doing well to be getting 15-20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} margin retailing from my experience, so £30-40 a box less costs and taxation.
K.
Re: How much would it cost to make a Servis washer?
Depends on what you mean by cost to make.
Pure raw material costs in factory of origin circa £55-60 at present.
Landed in the UK available for distribution circa £90 for something like an M6011.
I was until earlier in the year able to buy the base model at £125.00 inc VAT with 12 months P&L warranty. Delivery was extra
Regards
Jackal
Re: How much would it cost to make a Servis washer?
Now add up the cost of all the parts as sold by GBDAR 😯
Re: How much would it cost to make a Servis washer?
i was told by a person who worked for a moulding company that to produce the plastic tubs in machines would cost approx 1p in material and about 35k for the mould and machine setup to do it. if this is correct then i would say the cost to produce these machines on mass production is not very much at all !!
Re: How much would it cost to make a Servis washer?
I wonder what amount is put aside to cover 12 month’s guarantee?
Depends on the failure rate Andy. Typically 5-15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of the price.
K.
Re: How much would it cost to make a Servis washer?
Cheers K, but {e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of which price? 🙂
Re: How much would it cost to make a Servis washer?
So why would anyone wan’t to make a Servis in the first place. 😥
Re: How much would it cost to make a Servis washer?
It’s so much harder to make money out of a quality product or service isn’t it? Due to the majority of the UK public being so gullable, lazy, tight, short sighted etc. Many genuinely believe the expensive stuff is actually a rip off and they aren’t going to fall for it. They apply the same logic to repair companies too, which is why free estimates rule. Merry Christmas to ’em all 🙂
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