When you have the money to invest in something new, what becomes a priority?
Investing in something that will give you great return over the next 10 years? Or investing in something that will give you capital gain, look better, and give you more status?
Logically speaking, it makes sense to invest in something that’s going to give you the best return first, however, we don’t always make the logical choice. Human nature can overrule your decision-making, and spending your money on “wants” rather than investing in what you “need” can be more attractive. We are all motivated by a need to feel important, and we all love to feel good and look better.
Consider the comparison of a Ute fit-out compared to a new Kitchen fit-out. This can be tricky, as usually the want for a kitchen is much greater as far as your family is concerned – but let’s have a look at the numbers.
Investment for a ute fit-out = $15,000 – $20,000
Return on investment per year (ROI) = $9432.00.
Using an Auto Transform fit-out, we guarantee you’ll save at least 5-10% in efficiency alone with most bespoke modular fit-outs we offer. If you’re charging $90 per hour as a tradesman, gaining a minimum of 5% efficiency over 8 hours is worth $36 of your money per day. Multiply this over 262 working days in a year and it quickly stacks up to $9432 of savings through time.
The opportunities that you gain through this saving are huge, because you now have extra time to win more projects and get more income. As you can see, you can break even on your ute fit-out (tool of trade) in 1.5 – 2 years easily.
Another offset is the greater brand representation that you get. A professional fit-out shows people that you’re top of your game, and customers will be willing to pay more for your services.
Investment for a kitchen fit-out = $15,000 – $20,000
Return on investment per year (ROI) = $0.00.
A new kitchen fit-out carries the benefits of looking great to your mates (which is intangible) and potentially more capital gain when you sell your house, but this won’t generate any cashflow for you until you sell – which on average is about 5 years.
It’s important to feel good in life, and a new kitchen can help you achieve this. But if it creates a sinkhole in your cashflow and you find yourself unable to improve your income as you haven’t changed how you do your day job, the good feels about your new kitchen can disappear very fast.
The numbers don’t lie…
Investing your cash in a new fit-out will generate you more cashflow and income on a daily basis, and most likely within 2 years you will have more than enough surplus to invest in luxury items… including a new kitchen.
Our friendly team will be happy to help you find the perfect solution for your vehicle.