Cover Story
ROT (Rules of Thumb) for ROI (Return on Investment)
Chris Beytes
Wanting a piece of equipment is one thing; justifying the expenditure to yourself, your spouse, your partner, your CFO or your board is another. We’ve all heard the term “return on investment”(AKA payback), but how do you calculate it? And better still, are there any tricks, any shortcuts, any rules of thumb, that can make the calculation quicker or easier? We asked that question of some growers who we know are good at making smart equipment investments (most participated in our “Why Did I Wait So Long?” series). Here’s what they had to say about figuring ROI.