Getting Granular on Costs

[geaston]

I've been following all of these discussions on prices and the more recent one on fixed costs. I've spent the better part of today trying to figure out exactly how much my tops cost to run and I'm pretty stuck.

I've got how much it costs me in water (6.4 cents) but now I need to figure out how much it costs me to heat 32 gallons of water and how much one cycle costs in Electricity. The electricity I think I can get of the meter. Any thoughts on how I can compute the expense of gas on one turn of a top?

Then, assuming I get all my costs figured out to the machine, I intend to margin price above that number. I own 1/3 of the stores in town and there is no reason I need to be a price follower.

Any and all help I can get figuring out cost per use of a machine would be great. Or point me in the right direction....

[Howard]

Well I don't think you heat all the water that the machine uses, but that is another story. It takes one btu to raise the temperature of one pound of water one degree F. There are 8.34 pounds to a gallon of water. Don't forget to include the efficiency of your water heater.

[geaston]

[ QUOTE ]
Well I don't think you heat all the water that the machine uses, but that is another story. It takes one btu to raise the temperature of one pound of water one degree F. There are 8.34 pounds to a gallon of water. Don't forget to include the efficiency of your water heater.

[/ QUOTE ]

Great, thanks. I can go from there. As for how much of it is heated, that was my next question. I just messed up the back of a perfectly good (used) envelope and I think 1/3 of the water used in the tops, across all cycles, is heated. Methodology is in my head, but basically 51 gallons each use, 45% turns hot, 45% turns warm. Hot cycle draws 50% hot water (remember rinse cycle) and Warm draws 25% hot. Do some quick math and I got 33.7%. Intuitively seems plausible.

[Harper]

One could spend all day trying to calculate the cost of a toploader down to the penny. Question is: approximately how much does it cost to run a top loader on hot water based on the average gas rates? I'm talking utilities only... water, gas and electric? Are we talking 50 cents, 75 cents, 85 cents... etc... ? Another question: after deducting utility expenses, what kind of profit should one be shooting for on a top loader? .75 cents, $1.00, $1.50?? Then with that info a guy could do the rest of the math by deducting all other expenses.

[DuboisLaundry]

If you want to over-analyze the situation, remember that nobody pays to use aisles, lights, carts, folding tables, or change machines but the all cost rent and/or electricity. Getting rid of those items and replacing with the most profitable (per use) machine would be a [great / terrible (pick one] idea

[Adamski]

Dubois,

Shiny new equipment in a variety of sizes is nice but providing elbow space for our customers in the form of wide aisles, 72" tables and convenienct seating is important also. It does no good to fill up a building with equipment and not leave room for customers.

Larry /ubbthreads/images/graemlins/cool.gif