Smart Investments

Smart InvestmentsFor a business relationship to be positive, there are only two types of deals that are acceptable. Win-win, or no deal. Anytime you are in a win-lose scenario, it generally doesn’t make sense (without getting too philosophical). When you make investments, they need to really only come in one type – winners. After all, if you invest your hard earned money and it costs you more, then the deal was really a win-lose.

I had the pleasure of talking to a potential customer who was comparing our 18 Bad A** Beaver to a similar size “brand X” machine. Sometimes you have to read between the lines. For instance, we both claim 3 cord per hour production and I have told you how we reach those numbers. Cost is nearly identical. On both machines, the saws are the same and if you have been around firewood processors, you know the “slow” part of the process is the splitting, anyway. Ours is a 3.5 – 4 seconds cycle, while they claim a 7 second cycle. Well, if the slow part of the process take twice as long, how could anything possibly produce the same volume? The math doesn’t work.

If this gentleman hadn’t noticed that, he very well might have made a bad investment – getting a machine that will never reach the production level he needs. Could he make money with it? Possibly. But his return on investment would have taken at least twice as long and his cost per cord would be 50% higher. Look at it this way – if I said give me $100 and I’ll give you back $200 in one year or two (your choice), which one would you choose?

Investments either make you money or cost you money. Smart investments are the ones that maximize your return on investment in the least amount of time. Smart investors look at the details and understand their investment. You rarely see a used Wood Beaver on the used market and when you do, it is usually us selling a trade in. Our customers are so happy with their results, the only time they will give up their Wood Beaver is to upgrade their next Wood Beaver. That brand loyalty comes from making a smart investment.
Bryndon O’Hara
General Manager
Wood Beaver Forestry