Some Simple (but Effective) Business Math


When you own a business most decisions come down to one question: Does the math make sense?

If you make a purchase will it pay itself off? Or better yet, will you make an immediate profit?

For example, purchasing a new hearse will cost around $100,000. On a 60 month lease it will cost about $2,000 per month. But you will buy a new hearse because it is necessary for the running of your business. And eventually you will pay it off. But did you know that the AP Lazer machine can help you pay for that hearse while it is also paying off itself and making you profit?

A tribute cremation urn can be purchased from SuperNova International for $150, once you engrave four photos, a name and dates on it you can sell it for $995. That’s $845 in gross profit.

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When you sell a casket, you can add an engraving to it. Casket engravings have an average of $450 in gross profit.
If you sell three tribute cremation urns and two casket engravings per month ($845 x 3) + ($450 x 2) = $3,435 are you paying for the leases on the hearse and the AP Lazer while still having money left over.
$3,435 – ($2,000 + $900) = $535

Let’s do some more math. Maybe you’re better at selling cremation memorials than you are at selling casket engravings. Each of SuperNova’s cremation memorials with laser etchings has an average profit of $2,000. That makes the math even more simple. Just two cremation memorials a month $2,000 x 2= $4,000 will leave you $4,000 – ($2,000 + $900) = $1,100 leaves you with a gross profit of $1,100.

Mind you neither of these scenarios, three urns and two caskets or two memorials, are all that your AP Lazer will be able to handle. You are only limited by what you can sell. You can easily quadruple these calculations. And remember, your hearse and your laser machine are already paid off. Which means if you sell four cremation memorials it isn’t just $2,200. It’s $5,100. That’s more than enough to start leasing a second laser!

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