Picture Framing economy

[NinjaStorm]

Hi everyone, I am new to this messageboard. I am in an Engineering Economy class and my team members and I are doing a economic analysis project on picture frames. We need anyone's help on finding some cost and production info. We've got all our equipment and material costs, but we need some ideas on the useful life of a mat cutter, glass or acrylic cutter, and a miter saw. We also need ideas on the general salvage values of those items at the end of their useful life, or can they even be salvaged at all?...Any help is GREATLY appreciated. Thanks!

[JFeig]

welcome,
It depends on the type of equipment that you are talking about. Is it computerized or manual? Standard or high volumn?

Standard equipment has a long life. The body of equipment in most cases are indestructable.

My pneumatic miter saw is over 20 years old, works excellent and still probally has a resale value of $1,500.00.
I have an oval cutter (Star Springfield) that is from the 50's.
My C&H mat cutter is about 15 years old. It would sell for $300. A glass cutter would be about the same.
I had a Seal 350 dry mount press that died 2 years ago. It was 34 years old. My current vacumn press is about 15 years old.

As for computerized equipment, a computerized mat cutter will be limited to the live of the software and availability of spare parts. You might want to place a maximum of 7-10 years on this class of equipment.

Hope that helps with that 'A'

[B. Newman]

You might want to do a search on that. Seems like I read this very same question/query/scenario a couple of years ago...

Betty

[ 11-15-2003, 09:03 AM: Message edited by: B. Newman ]

[Bill Henry-]

All of the capital equipment I initially purchased 18 years ago is still in use. Of course, there are parts that wear out and need to be replaced (thermostats for dry mount presses, springs for the mat cutter, belts for the saw, etc.), but most of us are pretty handy and replacement costs are prohibitively high.

I have long since depreciated my initial investments and have no real idea what the salvage value would be since I’m still using them.

My computers (not used for CMC or POS) are generally retired after about 3 years.

[Walt C]

I would recommend that you use generally accepted accounting principles (GAAP established by the American Association of CPA;s) for determining your useful life of equipment. And given the fact that selling used equipment would be limited to a highly specialized trade/market I would use little if any salvage value.

As mentioned above, at the end of the useful life (according to GAAP) the equipment can have many more years of useful life and, depending on the market and the viability of the industry at the time of final depreciation, may or may not be salvagble.

And with computers, the salvage value is generally used up when you open the box, and computerized mat cutters are useful until the program is changed or until the manufacturer goes out of business and you need spare parts.

So in short, use AICPA recommended lives for manufacturing equipment etc. and use little if any salvage value.

Just an opinion from a former accountant.

[Studio2bn]

I am new to this wonderful site....I appreciate all the great input and would like to ask for a little help...I had emailed one of the regulars who goes by "Framerguy"...and he has been so helpful...I am/was having trouble with what you guys call the dreaded "Fourth Corner"...and he has informed me that I should simply start by doing/v nailing the "Fourth Corner" first.....I have tried this over and over again and apparently I am missing something...any input would be very much appreciated...He also told me that I might want to consider just making "Three cornered Frames"...any suggestion would be helpful.....
Thanks so much...
Twang Fullbright
Oneonta Alabama

[Framerguy]

Please, somebody help poor Twang!! I am at a loss to know how to direct him.

I also suggested that he use CornerWeld before he clamps the mitered corners down with his boot and attempts to drive in the v-nails with a claw hammer! (He is just starting out as a framer with a rather limited budget). He told me that he doesn't own a welding helmet!

When I told him to join all his frames as ovals to eliminate that "dreaded 4th corner", the phone went dead so I am not sure if I helped him or not.

I welcome you to the Grumble, Twang. As I told you when you phoned me collect to get some help, there are many Grumblers here on this forum that will have a multitude of answers to your problems.

(How in the world did THIS wind up on "Business Issues"????) :eek: :eek:

Framerguy

[lyoncat]

Definitely warped material. Try hot glue, You can force anything together with that stuff.

[EllenAtHowards]

In an attempt to morph back to the original question... it has been my observation that when framers get out of the framing business, they keep their equipment as much as possible. Once you know how to do framing, you are unlikely to pay someone else to do it. And of course your friends all know you know how to do it... well, you get the idea. So there is very little equipment that ends up for sale as used. This could either make it incredibly valuable because of its scarcity or valueless because the stuff that ends up on the open market is frequently totally clapped-out