Dump the Bins and Add Ready-mixed Concrete

Should You Replace Existing Bins for Cart-Away?

Many of our potential customers express concerns about whether they have enough space to incorporate a Cart-Away concrete system into their operations. While this concern makes sense, we believe there’s likely ample room to accommodate this lucrative addition if you reallocate some underperforming bins. The decision ultimately hinges on maximizing profitability per square foot of your yard space. Your product mix should focus on delivering the highest possible returns. To assess your current product mix's profitability, you’ll need to conduct a few key calculations. Note: There’s another significant reason we’ll touch on later. Let’s break it down: - **How much gross profit do you generate from each bulk product?** At our material yard, we determine the cost of the material, including any shipping fees, to establish the Cost of Goods (COGS) for each bulk item we stock. In Oregon, we typically order materials by the ton and sell them by the cubic yard. Therefore, we must convert tons to cubic yards by consulting our suppliers about the conversion factor for their products. After converting, we calculate our COGS per cubic yard before factoring in delivery charges. Adding delivery costs gives us a more accurate COGS estimate. Doubling this COGS figure helps us set our retail price. For instance, 1” to 2” river cobbles cost $20.65 per cubic yard when purchased in a 16-yard truckload. Delivery adds $55.00, making the COGS $24.09. Retailing this product at $48.20 per cubic yard yields a gross profit of $24.11 per cubic yard. For every truckload ordered, we earn approximately $385.76 in gross profit ($24.11 x 6 orders = $144.66). Over a year, with six truckloads, we generate an annualized gross profit of $2,314.56. - **How often did you sell this product in the past 12 months?** Known as the "turn-rate" in retail, analyzing invoices from the previous 12 months reveals that we ordered six truckloads of river cobbles. Thus, our turn rate is six. Multiplying the number of turns by the gross profit per turn provides insight into the product’s value within your yard. In this case, our river cobbles turned six times annually, generating $2,314.56 in annualized gross profit. - **How many square feet does it take to stock and sell this material?** The river cobble bins measure 12 feet wide and 15 feet deep, totaling 180 square feet of sales space. Dividing our annual gross profit by the square footage of sales space gives us the profit per square foot. Here, $2,314.56 divided by 180 square feet equals $12.86 per square foot of profit from river cobbles. - **What can you replace low-performing bins with to maximize profitability?** By evaluating each bin, you’ll identify which products yield the strongest returns per square foot. Experience shows that after completing this analysis and comparing the profits per square foot of adding Cart-Away ready-mix, many businesses opt to remove low-performing bins and transition to concrete. This process takes about two days, yet it proves invaluable for boosting yard profitability. Typically, replacing fewer than five underperforming bins frees up sufficient space for a Cart-Away loading system and four trailers.

What’s the Profit Potential of Cart-Away?

Over 400 Cart-Away locations operate similarly to the one shown above. Such a system occupies less than 900 square feet. Since 1993, we’ve gathered data on sites like this, allowing us to predict annual sales and gross profits fairly accurately. Achieving 1,500 cubic yards of concrete sales annually isn’t difficult in smaller to mid-sized markets. For this comparison, we’ll use 1,500 cubic yards as a benchmark to avoid overstating the figures. Many operators achieve 4,000 to 6,000 cubic yards annually by expanding their trailer fleets. Ready-mixed concrete represents the most consumed product in the built environment, so reaching these sales volumes is feasible. Most Cart-Away operators sell a cubic yard of ready-mix for $180 to $220 retail. For our calculations, we’ll use $190 per cubic yard. The cost of producing a cubic yard of concrete ranges between $78 and $91, depending on regional aggregate and cement costs. We’ll use $83 for our COGS calculation. The math works out as follows: $190 retail minus $83 COGS equals $107 in gross profit per cubic yard sold. Multiply $107 by 1,500 cubic yards to arrive at an annualized gross profit of $160,500. To determine the profit per square foot, consider that a Cart-Away automated system and four mixing trailers occupy roughly 900 square feet. Dividing the annual gross profit of $160,500 by 900 square feet results in $178.33 in gross profit per square foot. With data from your bulk materials and projected Cart-Away profits, it’s time to rethink your product mix.

Do You Have Four or Five Underperforming Bins?

If your yard contains bins with low profitability, seriously consider replacing them with a high-profit alternative. If five bins perform similarly to the river cobble example, they contribute only $64.30 per square foot annually ($12.86 x 5 = $64.30). By contrast, ready-mixed concrete could deliver 2.75 times that amount per square foot. Cart-Away concrete boasts some of the highest profits in the $50 billion ready-mixed concrete industry. High profits explain why most new Cart-Away startups recoup their equipment investment within 18 to 24 months. We’ve assisted countless material yards in swapping low-performing bins for Cart-Away profit centers. Reach out to one of our material supply experts to help crunch the numbers for your available space.

The Extra Benefit of Selling Ready-Mixed Concrete

The financials should align in your favor, but the primary advantage of adding Cart-Away lies in exposure. Displaying your logo on these rolling billboards creates an unparalleled marketing opportunity. Whether you place your number on a dump truck or feature your company name on a rotating drum powered by a quiet engine, these moving mixers draw attention wherever they go. Guaranteeing increased phone calls once your trailers hit city streets, the real reward unfolds as hundreds of new customers visit your yard—many of whom wouldn’t have otherwise considered you. Wisely converting these visitors into buyers for your other products expands your client base significantly. Satisfied Cart-Away customers nationwide report annual customer growth due to their status as the go-to source for concrete and related materials. It’s time to grow your business and optimize your yard space. Remove some bins and introduce Cart-Away. This strategic shift not only boosts revenue but also strengthens brand visibility, creating a win-win scenario for both your bottom line and customer engagement.

Carburant

Dingyang Metallurgical Refractory Co., Ltd , https://www.dyrefractorymatter.com