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In how to evaluate the purchase of a quilting machine guide, I have taken a simplistic approach to time, costs and payback.
There are more scientific models available such as net present value and discounted cash flow but I wanted to provide a quick
easy evaluation for those who are considering purchasing a quilting machine and wanted to know how the costs can be evaluated
over time and how long it would take to recover the costs incurred.
I have taken four values for costs, these represents the low end, average through to the higher end quilting machines. These
values are $7500, $10,000, $12,500 and $15,000.
Time periods are the length of time to recover the above costs of the quilting machine.
The payback time is the length of time to recover the costs of the quilting machine if one was to add a proportion of the costs
to each quilt produced. Obviously if one produced more quilts over a certain time period one would achieve an earlier payback
point.
The Tables below illustrates the above factors of cost, time and payback over 1 year to 5 years for each value range. The payback
period shows various calculations which will be dependent on each quilters circumstances with regard to the number of quilts
produced over a given time period.
Table 1 Cost of Quilting Machine per Year
Value $7,500 $10,500 $12,500 $15,000
Time
1 Year $7,500 $10,500 $12,500 $15,000
How and Whys: Quilting Machines
Many traditional hand quilters may disagree with the intrusion of Long Arm Quilting Machine into the realms of quilting and
that it is considered a necessary tool in creating a quilt. This is partly based on the assumption that quilting machines
would distract from the enjoyment and the uniqueness of quilting. But it cannot be denied that Machine quilting is becoming
more and more popular by the day. This trend from the traditional hand sewn quilt to machine made quilting can be attributed
to several factors such as the change in lifestyles, the advancement of quilting machines, intr ..
2 Year $3,750 $5,250 $6,250 $7,500
3 Year $2,500 $3,500 $4,167 $5,000
4 Year $1,875 $2,625 $3,125 $3,750
5 Year $1,500 $2,100 $2,500 $3,000
Table 2 One Quilt per Week
1 Year $7,500 $10,500 $12,500 $15,000
(52 Quilts) ($144.0) ($201.0) ($240.0) ($288.0)
2 Year ($72.11) ($100.96) ($120.19) ($144.23)
(104 Quilts)
3 Year ($48.07) ($64.10) ($80.12) ($96.15)
(156 Quilts)
4 Year ($36.05) (48.07) ($60.09) ($72.11)
(208 Quilts)
5 Year ($28.84) ($38.46) ($48.07) ($57.69)
How to Learn and Begin Quilting.
Quilting has many facets; it is artistic, enjoyable, creative
and can be a profitable business or pastime. Entering into
the world of quilting will introduce you to new techniques
and methods that have been passed down through generations
of families and communities of quilters worldwide. This
historical aspect adds to the attraction which is interlaced
with personal, local and national concerns of the time. So
quilting can reflect personal feelings, celebration, joy and
sorrow. Like artists, quilters have reflected their feelings
and interpretation of events in a multitude of colo ..
(260 Quilts)
Table1. Illustrates the annual costs for each quilting machine over 1 to 5 years.
Table 2. shows how much the quilter has to charge to recover the quilting machine costs based on producing 1 quilt per week
over each time period.
The above figures do not take into consideration any interest charges you may have to pay for the finance of the quilting
machine These additional costs would need to be included in the above figures. Neither do the above figures allow for any
tax allowances that can be claimed against capital equipment. The figures are only to illustrate how much each quilt
produced should contribute to the cost of the quilting machine and how to recover the quilting machine costs in your quilting
pricing.
A basic breakdown should be undertaken for all equipment used, materials and overheads such as rent, electricity. One then
adds labour costs and profit margin to arrive at the quilt sale price. Depending on ones business model and sales potential
and local market conditions it would be matter of weighing up the benefits of various quilting machines for efficiency and
output. With the above figures one can see at glance how the quilting machine costs can be recouped over various time periods
based on the output of one quilt per week.
George O'Neill publishes articles, reports on maters relating to quilting, quilting machines, materials, patterns and quilting
tools. To download articles and reports please visit: http://www.quiltingpeople.com
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