Hello, everyone.

This is Enta.

Recently, there have been instances where emails from me haven't been delivered—or where emails from you haven't reached me—possibly due to an issue with email software.

We apologize for any inconvenience this may cause.

We are currently working on this, so if you send us a message and do not receive a response, please give us a call or send us another email.

Thank you in advance.

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But that's beside the point.

Hello, everyone.

This is Enta.

The other day, I was talking with the CEO of another company in the same industry, and I found myself sighing the whole time, lol.

The price of that machine is crazy.That's the story.

The reality that everything is doubling

Until recentlyThe spray machine that used to cost 5 million is now 8 million.。

The drilling machine that used to cost 8 million is now 16 million.。

A 4-metric-ton truck costs over 15 million yen once it's fully outfitted.。

I guess all I can do is laugh, lol.

 

The machines we buy,Everything is nearly doubleIt has been becoming...

With the prices of steel, semiconductors, labor, and transportation all on the rise, I understand that manufacturers have no choice but to raise their prices.

I get that, but the question is, "So what are we supposed to do?"

Even though the number of machines has doubled, the unit price we charge the general contractor hasn't changed at all,Doesn't that seem a little strange?That's the story, lol

Have you properly set the unit price for your machinery?

I’d like to ask you all something here,

Do you have a process for determining the unit price for machinery costs?

Are you setting your prices based on "just a hunch" or "that's always been the price"?

If you don't calculate this properly, you'll seriously end up bleeding red.

Well then, let's do the math.

 

For example,An 8 million yen spray machineLet's say you bought it.

The number of days used in a year21 days × 3 months = 63 daysLet's assume that...

All purchases were financed with bank loans.5-Year Repayment PlanLet's assume that...

[Formula]

8 million yen ÷ 5 years = 1.6 million yen (annual repayment amount)

1.6 million yen ÷ 63 days = approximately 25,400 yen (daily equipment depreciation cost)

In addition to this,Plus the cost of repairs over the course of one yearAdd [...].

For example, if repair costs amount to 1 million yen per year,

1 million yen ÷ 63 days (3 months × 21 days) = approximately 15,900 yen (repair cost per day)

In other words,

25,400 yen + 15,900 yen = approximately 41,300 yen (minimum daily equipment cost)

This is the bare minimum.

Depending on the car, you’ve got fuel costs, oil, consumables, insurance, vehicle inspections… and the list just keeps going, lol.

When you actually do the math like this, it comes out to a crazy amount, lol.

If we don't reflect this in our unit prices, the company will go under.

With the previous 5-million-type spray machine, it would have cost about 15,900 yen per day under the same conditions.

The moment it reached 8 million, it was about 25,400 yen.

It's going up by about 10,000 yen a day, you know.

A difference of about 630,000 yen per year based on 63 days of operation.

That adds up to a difference of more than 3 million over five years.

If we keep charging "the same as before" without reflecting this in our unit prices, it’s only natural that the company’s financial strength will be eroded.

The higher the cost of the machinery, the more,This needs to be properly reflected in the financial results.

I understand how you feel—whether it’s because “it’s hard to bring it up with the general contractor” or “it’ll end up costing more than other companies.”

However,If you don't charge the right price, you'll only be shooting yourself in the foot.That's just how it is.

When a machine breaks down, there’s no money to replace it, repair costs can’t be covered, and as a result, operations come to a halt.

 

That would cause the general contractor a lot more trouble, wouldn't it?

Let’s set our unit prices confidently and with a solid basis.

Please be sure to try out the formula I wrote here on your company's machinery.

You'll probably be surprised and think, "Wait, does it really take this long?" lol

 

Occasionally, some people say, “I’ve been using this for decades, so it should be free!” but maintenance does cost money.

While it’s true that there’s no purchase cost for equipment we’ve been using for many years, the cost of replacing it in the future is also factored in.

I'd appreciate it if you could just overlook that part, lol.

 

See you later.