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Total Cost of Ownership: Calculating the True Price of Used Bottling Equipment

Total Cost of Ownership: Calculating the True Price of Used Bottling Equipment

Beyond the Purchase Price

The purchase price of used bottling equipment typically represents only 50–70% of the total cost to achieve full production capability. Understanding all cost components prevents budget overruns and ensures accurate ROI calculations.

Cost Breakdown Structure

Cost Category Typical Range Notes
Equipment purchase 50–70% of total Negotiable, condition-dependent
Dismantling & loading 3–8% Crane hire, rigging crew
Transport 5–15% Distance, weight, customs
Installation 10–20% Mechanical, electrical, piping
Commissioning 3–5% Testing, adjustment, training
Retrofits/upgrades 0–25% PLC migration, safety, format parts
Spare parts stock 2–5% Critical wear parts inventory

Transport Cost Factors

  • Equipment dimensions and weight determine transport mode
  • Oversized loads require special permits and escorts
  • Sea freight for international shipments adds 4–8 weeks
  • Customs duties vary by country — verify HS codes and applicable rates
  • Insurance during transport is essential — typically 1–2% of equipment value

Installation Planning

Installation costs vary dramatically based on facility readiness. Budget for: foundation preparation, utility connections (electrical, compressed air, water, drainage), conveyor modifications for integration, and safety guarding installation.

ROI Calculation Framework

Compare total landed cost of used equipment against new equipment pricing. Used equipment typically offers 40–60% savings over new, but factor in potentially higher maintenance costs in the first 2–3 years as deferred maintenance is addressed.

Frequently asked questions

How much should I budget beyond the purchase price?

Plan for 30–50% additional costs above the purchase price to cover transport, installation, commissioning, and initial spare parts. Complex or international purchases may exceed this range.

Is used bottling equipment a good investment?

When properly evaluated and purchased, used equipment typically offers 40–60% savings over new equipment with ROI periods of 1–3 years depending on production volume.

What is the biggest hidden cost?

PLC and control system migration is often the largest unexpected cost, ranging from €15,000 for a single machine to €250,000+ for a complete line.