Margins

Has anyone seen anything on potential margins for this? Let's assume some form of franchise model, and only 10% of the new house market of 9000 houses per month which ignores apartments etc. We get 900 houses per month so 90 machines needed at 3 days per house (10 houses per month each). And given other advantages, it doesn't have to be much cheaper than brickies on a direct basis to be in demand.

Let's say a brickie team lays 1000 bricks per day at $1,000 per day or $1 a brick. If the new model can lay 1,000 brick equivalents per hour, then its equivalent value is $24k per day. Allow lost time for moving sites etc, we can say $20k per day. I seriously doubt depreciation, operator and operational costs would exceed $5k per day. So there's a fair gap. Let's be very conservative and say there is a $4k per day margin to be had. So 90 machines x $4k per day gives us $131 m operating margin annually. So just need to remove ongoing central overheads for profit.

That seems a bit high so happy for a critical review. But half that isn't too shabby either for 10% of just one market.