Let's start with the fact that concrete is not a product that can be stored with the intention of subsequent sale. Therefore, the desire to engage in the so-called “concrete” business should be based on certain marketing studies that will provide the owner of a concrete plant with guaranteed sales of either ready-mixed concrete or products made from it. Therefore, assessing the profitability of concrete production must begin from the concrete implementation option. He will determine the expected income. The difference between the revenue side and the cost side will give an average estimated profit, the value of which will determine the return period of the investment.
The cost part consists of the following expenses:
- Costs for starting production, including transportation of the concrete plant to the location, installation and commissioning;
- Expenses for payment of production and warehouse areas;
- Production costs;
- Costs of basic materials;
- Related expenses such as advertising costs.
In accordance with the productivity of the concrete mixer, the selected duration of daily work and the size of the costs, the cost of one cubic meter of concrete is determined. Naturally, it should be less than the expected income component of the planned business. In this case, concrete production will be profitable.
More details about how to independently calculate costs, taking into account specific production conditions, can be found on our page zzbo.ru/useful/economical. The “calculator” developed by our specialists will help make calculations of the cost of concrete and the profitability of production based on the initial data (concrete composition, cost of components, productivity and cost of the concrete plant) entered into the prepared plates.
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