If your business is evaluating whether a commercial shade structure is worth the money, the solution is to calculate the return on investment (ROI).
Shade structures offer many benefits for manufacturing companies, industrial facilities and commercial properties. Conducting a sound ROI analysis will compare those benefits to the investment cost and reveal what they mean for your business’s bottom line.
This article will explain how to calculate the ROI of investing in commercial shade structures so that your business can:
- Discover the real value of a commercial shade structure.
- Make an informed decision and take action.
Keep reading for a step-by-step guide to calculating shade structure ROI.
Benefits of Shade Structures for Profitability
The first step is to calculate the returns. Let’s see how a commercial shade structure can boost your business’s profits.
Increased Sales
First, estimate the average monthly sales increase from investing in a commercial shade structure.
If your business serves customers who need to use the parking area or you own a commercial property like a shopping center, a parking shade structure can boost revenue in several ways:
- It can draw new customers to a location with a striking and attractive structure.
- It can convert customers from competitors by sheltering them and their vehicles from sun and hail.
- It can encourage customers to spend more time and money through the assurance of shelter.
- It can retain more customers by keeping them happy and covering their vehicles.
If you manage apartments or other rental properties, a shade structure is an asset that adds value to the property. It also improves the tenant experience and, as a result, your occupancy rates.
For other companies, such as manufacturing facilities, shade structures create a more pleasant experience for existing and prospective clients. Shade structures make a good impression, which can be a factor in securing competitive contracts.
Savings From Asset Protection
Next, consider how your business’s margins will improve when your business reduces losses through a protective shade structure. These structures can:
- Shelter company vehicles and equipment from the elements to reduce repair and maintenance costs.
- Minimize weather and heat damage to goods for reduced losses and defects.
Every dollar that a shade structure saves your business by extending asset life spans and limiting losses adds to its ROI value.
Energy and Tax Savings With Solar Shade Structures
Solar shade structures do more than protect people, vehicles and goods from the sun. They generate energy from it to power your business.
If opting for a solar shade structure, your business can look forward to even more savings. A solar shade structure can contribute to energy needs, reducing your business’s monthly energy bill. They can also qualify your business for a tax credit, saving even more money.
On top of those savings, a solar shade structure could generate additional revenue. If it produces more energy than your business needs to operate, the power grid can purchase the extra energy from your business through net metering.
Commercial Shade Structure Investment Costs
After calculating the estimated returns from commercial shade structures, it’s time to compare that with the investment cost. This cost has two parts — the initial outlay and the maintenance costs.
Purchasing a Commercial Shade Structure
Investing in a commercial shade structure requires a significant initial outlay. This includes the costs of design, manufacture and installation. Your business can calculate the cost of its commercial shade structures using USA SHADE’s product builder tool.
This simple tool allows your business to:
- Select a shade structure type and design.
- Interact with a 3D model of the design while trying out colors and styles.
- Request a free quote for that exact design in any quantity.
USA SHADE’s product builder makes estimating the initial cost of your business’s shade structure quick and easy. With USA SHADE, your business can access a range of structures and materials, plus helpful experts ready to assist with custom shade structures. This allows you to find the right solutions according to your budget and needs.
Maintaining a Commercial Shade Structure
After checking the initial investment cost, divide the returns over a given period by the cost to find the shade structure ROI over that period. The last step is to factor in maintenance by subtracting the estimated maintenance costs.
Effective commercial shade structure maintenance involves regular cleaning and inspection. The goal is to identify and resolve cracks, tears, stains or other defects as they arise. A consistent maintenance routine will help to reduce long-term costs.
Working with a commercial shade structure provider that uses reliable waterproof fabrics and materials will help your business save even more. Waterproof shade structures are a durable, low-maintenance option. They still require inspection and cleaning but offer extended life spans and superior resistance to wear and tear.
Calculating Shade Structure ROI
Now your business is fully equipped to calculate the ROI of investing in commercial shade structures:
- Estimate the monthly increase in sales.
- Add monthly savings, including reductions in repair and maintenance costs and stock losses.
- Add monthly utility and tax savings, if applicable.
- Add these three numbers together to get the total investment return.
- To calculate ROI over any period, divide the total return over that period by the initial outlay.
- Subtract the estimated maintenance costs over that period for the most accurate ROI projection.
Running this projected ROI analysis over different periods — such as one month, six months, one year and five years — will reveal:
- The likely number of months required to break even.
- How profitable this investment could be in the long term.
Maximize Commercial Shade Structure ROI With USA SHADE
To maximize your business’s commercial shade structure ROI, choose a partner who offers:
- Uncompromising quality structures with customizable features.
- A range of designs and aesthetics to suit your business’s budget and brand.
- Competitive value for design, manufacture and installation services.
- Solar and waterproof shade structure options.
- Durable structures that require minimal maintenance.
USA SHADE is the perfect partner when selecting commercial shade structures. Our team has industry-leading expertise in every stage of your project, from design through manufacture and installation. We are eager and able to turn your dream shade structure solution into reality.
Ready to start your business’s project? Use our product builder predesign tool to create 3D models and explore unlimited possibilities.
Then, request a free quote or contact us to speak to an expert about custom shade structures for your business.
