For most metal fabricators, the ultimate goal that they turn to a laser solution for their metal cutting job is ROI.
To achieve the goal, let’s do a simple analysis.
The average payback period of a metal laser cutting machine is around 2-3 years and the life span of the machine 8-10 years.
If you’re outsourcing the cutting work, and need to pay 10,000 USD per month to the outsourcing center. The average rate of profit of laser cutting service is between 50% and 60% (according to data from the China market). Then if you bring a metal laser cutting machine in-house, you can save about 5000USD per month and 60,000USD a year. If you need to cut metal with a thickness of 4-6mm, a 1000W metal laser cutting machine is good enough to handle the job. And If you buy a metal laser cutting machine from China, and manage to conclude the deal at around 60, 000 USD-70,000USD. That means you will get your money back in 1 year. And for the next 7-9 years, you will keep all the profits. Because the service life of a metal laser cutting machine can last 8-10 years. What a cost-effective investment! This is the idea we want to share with you.
If you’re an end-user, what’s your blanking cost per month? Here by blanking cost, we refer to just cutting cost which does not include the costs of material or follow up bending, folding, welding, painting. Some customers did not calculate the cost separately. It doesn’t matter. The cutting cost is normally half of the processing fee. It has been proved that a 50%-60% average rate of profit is an accurate algorithm. Therefore, you can calculate the payback period according to your machine cost. Make sure to keep the period within 2 years.
Since 2-year ROI is our standard, all choices about the machine are made to realize that goal. Therefore, choosing the right metal laser cutting machine is of great importance.
It should not only meet your current production requirements but also lay the foundation for the next 6-8 years.