B1800 Business Case – £90,000 Profit Per Month Running at Six Hours Per Day
The B1800 business case gives you the information and data you need to make the business decision to buy the plant.
We have used an annual usage of 30,000 m3 per year for the calculation.
30,000 m3 is 50% of the full capacity of 60,000 m3.
30,000 m3 is about between 90 and 120 m3 per day. This production is ideal for medium pre-cast factories making concrete blocks and other pre-cast products and large construction sites producing concrete on demand.
Concrete Production Cost
The production cost to produce a C50 or 50 kN/mm2 concrete mix is £71.94. If some recycled aggregates can be used in the mix, then this will reduce the cost. The prices are based November 2018 Wirral, UK.
Prices of materials will change in time and depending on location.
Return On Investment
The cost of buying C50 ready-mix is £98.00, giving a difference of £25 m3
30,000 m3 x £25 m3 saving is £750,000.
The total investment of the plant including lease-purchase costs is £118,889 giving a payback period of less than four months.
Your selling price for you concrete should be between £25 m3 to sell as ready-mix to £50 m3 selling it as pre-cast products.
Monthly profitability based on the plant running four hours per day = 120 m3 production. Profitability based £25 m3 = £3,000 per day and £60,000 per month.
Monthly profitability based on the plant running six hours per day = 180 m3 production. Profitability based £25 m3 = £4,500 per day and £90,000 per month.
Your monthly plant repayment on finance will be around £2,200 per month.
We offer a full finance service for a number of finance options. Go to Finance to learn more.
Plant and Concrete Production cost Analysis
Concrete Production Costs
As you can from the spread sheet a C50 mix costs £71.94. The cost of a C15 mix is £60 m3 the main difference being the cement and chemical content. Cost can be reduced further using recycled aggregates and sands.
We have the analysis on a spreadsheet. If you would like a copy to put your own inputs in for a update, contact me using one of the options below.
If you have any questions feel free to contact me using one of the methods below.