Woke up early and was immediately thinking about one of my last conversations yesterday. Let’s start with some math;
If you spend $1000 and in return I lower the cost of something by about $3000 what could you consider your return on investment(roi)? $2000 not bad. Not bad at all.
So in the first year of this new product you saved $2000 by spending $1000. Now in the second year(assuming current numbers stay the same) you actually save $3000 since you do not spend the $1000 again. So you have now made $5000 by investing $1000. 500% return.