Skip to main content
Independent machine intelligence · Research before the decision
THE MACHINEBLUE BOOKResearch · Market · Ownership
MBB Explains · Film 14

Machine Price Versus Total Installed Cost

The sticker is an introduction. It is not the entire conversation.

MBB Explains · 62 secondsOriginal MBB animation · English captions

About this film

The sticker is an introduction. It is not the entire conversation.

Bronto builds a sample machine-cost subtotal, then asks what is still missing before useful parts can leave the shop.

Example assumptions

Invented subtotal:$100,000 machine +$15,000 delivery/installation +$10,000 tooling/training =$125,000, before taxes, additional site/software/contingency/working cash and financing. Do not call this complete production-ready cost. Use project unlevered cost/returns OR a consistently financed equity cash flow including borrowing proceeds and repayments; do not charge purchase principal twice.

Educational boundary

General educational information only, not an offer of financing, a recommendation to borrow, or individual financial, tax, legal, engineering or safety advice. All dollar amounts are USD. Bob, the finance representative and their situations are fictional. Numerical examples are hypothetical, not current offers, market benchmarks, normal rates, quotes or promises of approval or return. Eligibility, terms, fees, tax treatment, ownership rights and laws depend on the actual agreement, jurisdiction and circumstances. MBB is an independent information resource, not a law firm, and is not acting as your lender, broker, attorney, accountant, financial adviser or site engineer. Consult appropriately qualified professionals and read the actual written terms before deciding. Commercial equipment credit does not automatically receive consumer mortgage protections.

An MBB Explains short, narrated by Bronto. Fictional illustrations turn machinery questions into something a little easier to understand.

Independent machinery knowledge. Understand the numbers before deciding.

Original MBB animation with synthetic Bronto narration. Narration: synthetic Bronto voice. The film uses English captions as a separate track, so they can be turned off.

Read the complete transcript

Bob sees a hundred thousand dollar price tag. Making useful parts may cost considerably more. Financially interesting, which is the unfortunate kind. For illustration, fifteen thousand for delivery and installation, plus ten thousand for tooling and training, brings the subtotal to a hundred and twenty five thousand dollars. Other costs may remain. Check taxes, site work, software and contingency too. Define what your installed cost includes so competing quotes cover the same scope. Otherwise, the cheapest offer may simply contain fewer things. Track working cash and financing separately. In a financed cash forecast, include loan proceeds as well as repayments, or count only your equity and debt service. Do not count principal twice. The sticker is an introduction, not the entire conversation. Explore ownership planning at Machine Blue Book. General education, not individual advice.