At this point most contractors are familiar with what infrared repair is and how it works. One thing that is not often discussed is the actual cost to perform an infrared repair. The general rule of thumb and what most manufacturers will say, including KM International, is it is 1/3 the cost of traditional methods like saw cut remove and repair. But what does 1/3 the cost actually break down to?
The below chart outlines the average revenue, expenses, and profits one could expect when performing infrared repairs. And yes, we understand everyone’s costs are going to be different, but these numbers are accounting for industry averages from across the U.S.
Based on the chart above the profit margins work out to about 68%, which for an industry where most contractors are happy to clear 20% margins is remarkable. Also keep in mind that this chart includes 2 major variables that could raise those margins even higher. The chart accounts for 20 heats per day which works out to 2.5 heats per hour, which is about average, but assuming a single infrared repair should only take 15-20 minutes that number of repairs per day could easily be increased to 24-30. Secondly the Sq.Ft. price of $4.25 which breaks down to $170/repair (40 Sq. Ft. x $4.25 Sq. Ft.) is actually on the lower end as most contractors we speak with say they are getting $200+ per heat and even more performing repairs in the “off-season”.
If you think that you can’t start a business based solely on performing infrared repair, you couldn’t be further from the truth. KM International has had a variety of customers from asphalt contractors to retired military personal invest in a KM hotbox and infrared and have overwhelming success within the first few months. Those who start with infrared repair eventually do start to add additional service offerings, however infrared always remains their primary focus. KMI has hundreds of customers who started with a single hotbox and infrared setup and have scaled that to 5+ infrared crews working daily.
KM International is unique in the fact that as a manufacturer we get to work with hundreds of different contractors a year and get to hear the success stories from around the country of how infrared repair has helped significantly grow their companies bottom line. For those contractors who are already established and have the equipment, manpower, and a customer list then you are already ahead of the game and infrared repair can be seamlessly integrated into your existing business. For those new to the industry a relatively minimal investment in a KM hotbox and infrared can yield immediate returns.
As one of the first infrared manufacturers, KM International has always promoted the fact that we aren’t just selling a piece of equipment we are selling a process and business model that has been proven to work by thousands of contractors across the country. KM International works closely with all our customers to make sure they have all the resources necessary to be successful in using their equipment whether it be an infrared heater or something else. “A major factor that sets KM apart from most manufacturers is the continued support long after the sale”, says Michael Blake, KM’s Marketing Director. Blake adds “Selling a piece of equipment is usually the first step in our relationship with customers. We want to act as an extension to our customers business and help support them in any way possible.”
If you are interested in learning more about the infrared repair process, equipment, or potential it brings to your business contact KM International at 810-688-1234 or sales@kminternational.com. Visit KM International online at www.kminternational.com
