Matt L
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Registered: 17th Apr 06
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basically i need to work out or guess the variable cost and fixed cost of each run on a rolling road and tbh i havent got a clue at all what they would be. so anyone want to guess or know what they may be?
cheers matt
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willay
Moderator
Organiser: South East, National Events
Premium Member
Registered: 10th Nov 02
Location: Roydon, Essex
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for the owner or someone running the car?
Speak to that cunt Dave A
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Matt L
Member
Registered: 17th Apr 06
User status: Offline
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for the owner of it. and ill u2u him now.
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ssj_kakarot
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Registered: 29th Apr 03
Location: hartlepool
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up well i have no idea whats involved with a rolling road but i can take a guess lol....
variable - labour wage,
fixed - rent/lease ect, lighting/heat/ ect,
not really sure i have no idea how one is run was just taking a guess but fixed costs are usually the same with most things.
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ssj_kakarot
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Registered: 29th Apr 03
Location: hartlepool
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i dont suppose there is much tbh some one with a better knowledge of how they work will be able to fill it in better though.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Labour wage is only variable if you're paying by time or rolling road session that you're running. If your staff are salaried then its a fixed cost as it doesn't vary with output.
Variable costs - ie. those which vary with output would include electricty to conduct the run, consumables for the reporting, ie. paper mainly but perhaps also printing consumables. There are not many others tbh. The major costs of a RR is the setup.
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ssj_kakarot
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Registered: 29th Apr 03
Location: hartlepool
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thought electricity was always included with the fixed costs.
I was kind of assuming some one in a garage would be paid hourly.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Heat and light is, because it doesn't vary with output.
Running the road is probably more expensive than not running it though?
Hourly wage is still fixed cost if productivity doesn't change as a result of it.
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Matt L
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Registered: 17th Apr 06
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right these are the rough figures i have
fixed costs = 17800 (inc heat, light, rent etc)
variable costs = 10 (mainly wages)
selling price = 75 (for 3 power runs)
the break even comes to 273 now is that i need 273 customers to break even or do i need 91 (273/3)
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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If you are only selling runs in groups of three then ignore that. Its £75 for one purchase, which costs you £10.
Therefore you make £65 each sale, therefore you need to do 274 sales to have broken even.
Each sale is three runs, therefore you actually need to run the road 822 times.
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Matt L
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Registered: 17th Apr 06
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ahh cheers. christ didnt realise it was going to need that many to break even. atleast my evaluation of this idea will be good.
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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Thats only 274 sales though.
If you did a few 15 car shootouts you can knock perhaps one hundred off that.
Then consider that some people might return and do it again.
Its probably only 200 customers, a couple of club reps and a bit of repeat business.
Over the course of the year that is certainly possible.
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Matt L
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Registered: 17th Apr 06
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hmm spose so thinking about it that way. even if i had 1 customer every day of the year i would make a profit.
cheers ian
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Welsh Dan
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Registered: 23rd Mar 00
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What about maintenance costs? On a 100k rolling road, i'd expect reasonable maintenance costs to keep it tiptop
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