Are You Saving Enough? Calculating the ROI of a Scissor Lift

Apr 15, 2017

Calculating the ROI of a Scissor Lift

Calculating the ROI of a Scissor Lift. As a decision maker, your ROI target is important. ROI—or return on investment—is useful for gauging your versatile tool’s success, fiscally. If you’re investing in a scissor lift, you may want to know if it’s making you money. While functionality is important, your business deserves a piece of equipment capable of earning money over the long haul.

Figuring out a meaningful ROI can be challenging, but you’re not left without tools. We’re here to help you determine the ROI of your fork lift purchase, starting from the ground up.

First: Set Up the Formula

The basic ROI formula to determine your purchase’s ROI is your savings divided by your investment . That said, your saving should also be divided by any time-based capital costs you’ll be saving. While a lot of factors need to be weighed when determining your scissor lift’s ROI, this basic equation will always hold true.

Second: Evaluate Your Savings

You’ll need to determine how much money your new scissor lift will save in the long run. First, you should determine your scissor lift’s preservation of capital . How much money will your scissor lift save when you’re considering it against other equipment options? Similarly, will you save money by reducing worker costs?

Third: Evaluate Its Life Cycle

You’ll need to depreciate your scissor lift’s value over time. Machines wear down, and your lift may not offer high-end cost advantages after many years. Calculate any expected maintenance costs, and determine your new product’s lifespan. You can determine its value depreciation before it actually depreciates, giving you an estimation of its value over time.

Fourth: Evaluate Your Use of Capital

Mark down the scissor lift’s cost. Then, determine any tax implications of owning it. Business property is typically taxable, as it’s considered to be an asset . This tax burden can be weighed against your scissor lift’s depreciation, too, which can spare expenses later on. A piece of machinery has a total cost of ownership—or TCO. You’ll need to evaluate your investment’s overall cash outlay—again, over time—to weigh the various advantages and disadvantages of purchasing it.

Five: Try to Maximize Your ROI

Your capital expenditures should be balanced against the determined ROI. You should, however, consult with your business’s financial experts which’re experienced in quantifying ROI. If you want to ‘eyeball’ your new scissor lift’s ROI, check out this formula rundown .

At the end of the day, it pays off to justify your investments. A scissor lift can greatly reduce worker expenses, and it can speed up back-house processes—making your workplace highly efficient. Every workplace is different, however, and your warehouse needs may require complex ROI rundowns. Again, contact your financial provider for more information.
Once you engage in innovative financing solutions, you’ll take full advantage of your machine’s capabilities. Running a business on a high-ROI basis is incredibly smart, and it can give you a slew of resources as your brand grows, expands and approaches new opportunities. Take your time, consider the costs and take charge with your new investment.

Common Hazards in Your Warehouse (And How to Avoid Them)

08 Apr, 2024
Warehouses are the backbone of many industries, storing and distributing goods to keep the economy moving. However, behind the scenes of this logistical hub lurk various hazards that can pose severe risks to employees and property. Let's investigate some of the most common warehouse hazards and explore proactive mitigation strategies. Slips/Trips/Falls Slips, trips, and falls are among the most prevalent hazards in warehouse spaces. Spills, cluttered aisles, and uneven surfaces can easily lead to accidents if not adequately addressed. To prevent such incidents, warehouses should prioritize proper housekeeping, including regular cleaning and maintenance of floors. Additionally, using signage to highlight potential hazards and ensuring adequate lighting throughout the facility can significantly reduce the risk of slips, trips, and falls. Fires Flammable materials and electrical equipment in warehouses make them susceptible to fires. Faulty wiring, improper storage of combustible materials, and lack of fire suppression systems can all contribute to the risk of fire outbreaks. Implementing preventive measures such as regular equipment maintenance, proper storage protocols for flammable materials, and employee training on fire safety procedures are crucial in mitigating this hazard. Harmful Substances Warehouses often house various chemicals and hazardous substances, which can pose risks to employees' health if not handled properly. Exposure to harmful substances can lead to respiratory issues, skin irritation, and other serious health problems. To mitigate this hazard, warehouses should properly store and label hazardous materials, provide employees with appropriate personal protective equipment (PPE), ensure adequate ventilation systems, and conduct regular training on safe handling procedures. Falling Objects With shelves stacked high with merchandise, falling objects present a significant hazard in warehouses. Poorly secured storage systems, improper stacking of items, and inadequate safety measures can all increase the risk of objects falling and causing injury. Warehouses can minimize this risk by adequately securing shelves and storage systems, using barriers or guardrails to prevent objects from falling, and conducting regular inspections of overhead storage areas. Overexertion The physical demands of warehouse work can lead to overexertion injuries if employees lack adequate training or don't perform tasks ergonomically. Lifting heavy objects, repetitive motions, and working in awkward positions can all contribute to overexertion injuries such as strains and sprains. To prevent such injuries, warehouses should provide comprehensive training on proper lifting techniques, encourage the use of mechanical aids such as forklifts and pallet jacks, and implement ergonomic workstations to reduce strain on employees' bodies.

Common Inventory Management Mistakes

08 Mar, 2024
Effective inventory management practices influence the success of each warehouse, the supply chain, and the business at large. Inventory management involves many moving parts and elements – everything from the product catalog to the warehouse space to tracked KPIs. Experienced warehouse managers know that no matter how fool-proof your inventory management systems are, there’s always room to improve and prepare for unexpected circumstances. Let’s discuss common inventory management mistakes (and what to do instead). Overstocking or Understocking One of the most prevalent inventory management mistakes is maintaining too much or too little inventory. Overstocking ties up valuable capital and warehouse space, leading to increased carrying costs and a higher risk of obsolescence. On the other hand, understocking can result in stockouts, backorders, and dissatisfied customers. Businesses should leverage historical sales data, market trends, and advanced forecasting techniques to accurately predict demand and optimize inventory levels. Inaccurate Demand Forecasting Businesses are prone to making costly inventory planning errors without precise demand forecasting. Relying on outdated data or flawed forecasting methods can lead to inefficiencies and missed opportunities. By utilizing advanced analytics and predictive modeling, businesses can better anticipate shifts in demand, seasonal fluctuations, and emerging trends, allowing for more informed inventory decisions and improved responsiveness to customer needs. Lack of Inventory Visibility Poor visibility into inventory levels across multiple locations or channels can result in operational inefficiencies and errors. Without real-time data on stock levels and movement, businesses may struggle to fulfill orders on time, leading to customer dissatisfaction and lost sales. Implementing integrated inventory management systems that provide comprehensive visibility into inventory across the supply chain can help businesses optimize inventory allocation, reduce stockouts, and improve overall operational performance.

A Beginner’s Guide to Electric Forklifts

By Denis Benden • 08 Feb, 2024
Efficient material handling is crucial for businesses of all sizes and industries. It directly impacts productivity, cost-effectiveness, and overall operational success. Effective material handling ensures that goods are moved, stored, and transported in a streamlined and organized manner, minimizing delays, damages, and errors. Electric forklifts play a significant role in effective material handling, transforming the […] The post A Beginner’s Guide to Electric Forklifts appeared first on Benco Industrial Equipment.
More Posts
Share by: