Buy a gutter machine or not


#1

I’ve thought about purchasing a 5k gutter machine. We sell probably 450-600 feet per week. Aside from the initial gutter machine truck purchase, the coil, accessory and labor cost is really low. However, my current gutter sub only charges me $2.50/foot. After doing the cost factoring, I have a different question now; How does my gutter sub make any money or a living? Coil alone is almost $1.50/foot. Can Someone offer me some insight?


#2

$2.50 is low. Perhaps his volume is much higher than what you’ve checked and he’s getting a lower price on his materials. Imho, from a business point of view, it makes no sense at this point for you to invest in equipment and personnel. At the price he is selling to you for, you should be able to expand your gutter business substantially while still subbing it out. Once you’ve reached a volume level where you could keep that machine and personnel busy 90% plus of the time,v then make the capital investment. Buying the equipment isn’t going to inverse your gutter business. More selling will. Spend your money now on sales and marketing to increase your gutter volume.