shop leasing experience

Mar 04, 2006 2 Replies

I have been approached somewhat, by a steady customer/employer, that wants to lease my shop, equipment etc.... I essentially am captive to them anyway, but leasing eliminates a lot of the headaches associated with quoting, scheduling, invoicing& billing, and a whole raft of other thorny issues. I have a small shop with a pair of well-maintained, very accurate Mori-Seikis. A MV-JR VMC and and AL-20 lathe, with all the rest of the support stuff, etc... and a couple zillion invested in tooling. Strickly prototyping, and design & build test & tooling fixturing. So the real question is: How much to establish for a reasonable monthly lease agreement. 2 machines + shop overhead + specialized tooling ???/month? I don't want to gouge these guys, cause this is a very long term customer, but I don't want to come up short every month either.



more details to those who have practical replies.....


ca


Crossposted to misc.legal, misc.taxes & alt.accounting from alt.machines.cnc. HTH

Assuming this customer is paying for your priority in jobs then the question becomes how much income do you need to cover shop expenses such as loans, maintenance, payroll, etc. before giving you a "return on investment". Some expenses may drop out like advertising or administrative but some may increase like taxes. This doesn't involve complicated formulas but you could benefit by consulting with an accountant to explain all the ramifications to your situation.

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