BOMAG Americas, Inc.
2000 Kentville Road
Kewanee, IL 61443
Phone: (800) 782-6624
Fax: (309) 852-0350
| How Milling Machines Can Positively Transform Any Paving Contractor's Business - Page 2 |
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Objection #1: Sticker Shock By far, the biggest objection that most paving contractors have when considering the acquisition of a milling machine is the initial purchase price. And without a doubt, at $300,000 or more, the price is high. Take this concern a step further and understand that the biggest equipment investment for many paving contractors up to this point may have been $100,000 for their bread-and-butter machine, the paver. Now they're being asked to spend three times as much to invest in a piece of equipment that addresses a need outside of their primary paving function.
It's little wonder that few contractors get past this obstacle. Successful contractors understand that there is no reward without risk, but for many this feels like they're really sticking their necks out. Therefore, most choose to let someone else take the risk and they hire a subcontractor to do the milling. What these contractors fail to see is the relatively quick return on investment that can be experienced with a milling machine. When objectively looking at the initial purchase price of a mill, contractors should first consider the amount they typically spend on subcontractors over a twelve-month span. On average, subbing a mill costs between $3,500 and $5,000 per day, with the former being a very conservative estimate. Depending on the paving contractor's size of operation and scope of jobs, they may be subbing a machine anywhere from twice a month to twice a week. And at a minimum of $3,500 per day for these services, that's at least $84,000 spent annually. |
| Last Updated on Tuesday, 06 January 2009 08:28 |
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