Diving into the world of spray foam insulation requires understanding the significant investment that comes with purchasing a PU spray foam machine, with prices ranging from $1,500 for basic models to over $26,250 for professional-grade equipment. The cost varies dramatically based on pressure systems, heating capabilities, output capacity, and additional features that can transform your operational efficiency and application quality.

Key Takeaways

• PU spray foam machines range from $1,500 to $26,250+ depending on type and capabilities
• High-pressure systems offer superior application quality but come at a premium price compared to low-pressure alternatives
• Advanced features like heated hoses and digital controls justify higher price points through improved efficiency
• American-made equipment typically costs more but offers better reliability and support than imported options
• Total ownership costs include maintenance, training, and setup expenses beyond the initial purchase price

The Cost Spectrum of PU Spray Foam Machines

The price range for PU spray foam machines spans from $1,500 to over $26,250, creating a broad spectrum that accommodates various business needs and project requirements. This significant price variation reflects the differences in machine capabilities, construction quality, and output capacity available on the market.

Several key factors influence the pricing of these machines. The type of pressure system (high vs. low) creates the most substantial price differential, with high-pressure systems commanding premium prices due to their superior application capabilities. Heating capabilities also play a crucial role, as machines with more precise temperature control and faster heating elements cost considerably more.

When comparing entry-level and professional-grade equipment, you’ll notice that output capacity creates another major price distinction. Basic models might process 10-15 pounds of material per minute, while high-end machines can handle 40+ pounds per minute, dramatically increasing productivity but also price.

The primary cost determinants can be summarized as:

• Pressure system type (high-pressure vs. low-pressure)
• Heating capabilities and temperature control precision
• Material output volume capacity
• Construction quality and component durability
• Advanced features and automation capabilities

Popular PU Spray Foam Machine Models and Their Prices

The spray foam equipment market features several standout models that have established themselves as industry standards. The Graco Reactor E-10, priced at approximately $22,010, offers contractors a reliable entry point into professional-grade equipment with its balanced features and respectable output capacity.

Moving up the performance ladder, the Graco Reactor E-20 commands a price point of $26,250 but delivers enhanced capabilities including higher output volume, more precise temperature control, and improved application consistency that justifies the additional investment for high-volume contractors.

For those seeking a middle-ground option, the Master Pack Model 776 represents a compelling choice at $14,500. This system includes heated hoses and auto-calibrating ratio pumps, features typically found on more expensive models, making it a value-oriented option for growing businesses.

Budget-friendly options under $5,000 do exist, though they typically come with significant limitations. These entry-level machines often feature:

• Manual pressure and temperature controls
• Lower material output (5-10 pounds per minute)
• Shorter hose lengths (25-50 feet)
• Limited or no data tracking capabilities
• Minimal automation features

Mid-range machines ($5,000-$15,000) offer a substantial step up in capabilities while remaining accessible to small and medium-sized contractors. These systems typically include basic heated hoses, improved ratio control, and moderate output capacity suitable for residential and light commercial applications.

Premium systems starting at $15,000 and reaching beyond $26,250 deliver comprehensive feature sets designed for high-volume commercial applications. These machines include advanced digital controls, data logging capabilities, extensive diagnostic systems, and output capacities that can dramatically improve productivity on large projects.

High-Pressure vs. Low-Pressure Systems

High-pressure spray foam systems represent a significant price premium, typically starting around $10,000 and reaching well beyond $25,000 for advanced models. This higher cost delivers substantial benefits, including superior cell structure, improved adhesion, and the ability to spray thicker applications in a single pass.

These high-pressure systems excel in commercial applications where insulation performance is critical and large areas must be covered efficiently. The price difference reflects their more complex components, including robust pumps, precision heating elements, and sophisticated pressure regulation systems that maintain consistent output under challenging conditions.

In contrast, low-pressure systems typically range from $1,500 to $8,000 and offer a more accessible entry point for smaller contractors. These systems are ideal for residential touch-up work, smaller insulation projects, and applications where maximum thermal performance isn’t the primary concern.

When selecting between these pressure options, your decision should be guided by:

• Project scale and typical application size
• Required foam density and physical properties
• Installation environment temperature variations
• Mobility requirements and setup time constraints
• Budget constraints vs. productivity needs

The performance differences that justify the price disparities become evident in challenging application scenarios. High-pressure systems maintain consistent output in cold conditions, achieve better bonding to difficult substrates, and provide superior thermal efficiency through optimized cell structure – benefits that directly translate to higher customer satisfaction and fewer callbacks.

Advanced Features Worth the Investment

Data recording capabilities represent one of the most valuable advanced features available on premium PU spray foam machines. These systems track application parameters in real-time, creating documentation that proves proper installation procedures were followed – an increasingly important consideration for warranty claims and quality assurance.

Hydraulic systems, though adding $3,000-$5,000 to machine costs, deliver exceptional consistency and reliability compared to pneumatic alternatives. The precise control offered by hydraulic pressure regulation results in more uniform foam properties and reduced material waste, particularly valuable on large commercial projects.

Braided heated hoses represent another worthwhile investment, typically adding $800-$1,500 to system cost depending on length. These hoses provide superior thermal efficiency, maintaining precise material temperatures from machine to gun even in challenging environmental conditions, resulting in better foam quality and fewer application issues.

Digital temperature and pressure controls add approximately $1,200-$2,500 to machine cost but deliver substantial operational benefits. These systems allow for:

• Preset configurations for different application types
• Real-time monitoring and adjustment capabilities
• Automated pressure balancing between A and B components
• Temperature compensation for environmental conditions
• Alert systems for out-of-range parameters

Multiple spray gun compatibility and quick-change components can add $800-$1,800 to system cost but dramatically improve productivity by reducing downtime between applications. This feature allows operators to switch between different application types (such as open-cell to closed-cell) without extensive system purging and recalibration.

Automated cleaning systems, while adding $1,500-$3,000 to machine cost, provide substantial long-term value by extending component life and reducing maintenance requirements. These systems automatically flush material paths at shutdown, preventing curing within the machine and reducing the frequency of manual cleaning procedures.

American-Made vs. Imported Equipment

PMC Machinery stands out in the American-made equipment category, offering high-quality spray foam systems with simplified operation that can help reduce training time and operating errors. These machines typically command prices 20-40% higher than imported alternatives but deliver superior build quality and component reliability.

The alternative market features numerous imported options available through platforms like Alibaba, with prices often 40-60% lower than American-made equivalents. These machines can range from $3,000 to $12,000 for systems that claim similar specifications to domestic products costing $10,000 to $25,000.

This price difference must be evaluated against significant quality, reliability, and warranty variations. American-made equipment typically offers:

• Components manufactured to stricter tolerances
• Comprehensive warranties (often 2-5 years vs. 90 days)
• Readily available replacement parts
• Documentation and controls in English
• Compliance with U.S. electrical and safety standards

After-sales support represents perhaps the most critical consideration when evaluating the price premium for domestic manufacturing. American manufacturers typically offer phone support during business hours, field technician availability, and ongoing training opportunities that can prove invaluable when equipment issues arise during project execution.

The price premium for domestic manufacturing typically ranges from $5,000 to $12,000 depending on machine specifications. This difference is often justified for full-time contractors who cannot afford extended downtime or who require reliable performance in challenging environments. For occasional users or those with mechanical expertise to address issues independently, imported options may present acceptable value.

Return on Investment Calculations

The initial cost of a PU spray foam machine represents just one factor in the overall financial equation. A comprehensive ROI analysis must consider how quickly the equipment will pay for itself through improved productivity and new revenue opportunities.

Higher-end machines costing $15,000+ typically deliver substantial productivity improvements compared to entry-level options. A professional unit can often apply material 2-3 times faster, potentially allowing a crew to complete more projects per day and dramatically increasing revenue potential.

To calculate potential revenue generation, consider this breakdown for a professional-grade machine costing $22,000:

• Typical residential project: 2,000 square feet
• Average closed-cell application price: $1.25-$1.75 per board foot
• Material cost: approximately 40% of project price
• Projects per week with professional equipment: 3-4
• Weekly revenue potential: $15,000-$28,000

Equipment lifespan considerations also factor heavily into ROI calculations. Professional-grade machines typically offer a 7-10 year operational life with proper maintenance, while budget options might require replacement after 2-4 years of regular use, effectively reducing the actual price gap between entry-level and professional equipment.

Cost per square foot analysis reveals that while premium machines require higher initial investment, they typically reduce application costs through more efficient material usage, lower labor requirements, and reduced waste. A professional system might reduce material consumption by 10-15% through more precise ratio control and improved application consistency.

To justify different price points, consider the project volume needed. For a $5,000 entry-level machine, a part-time contractor completing 1-2 residential projects monthly might achieve reasonable ROI. For a $22,000 professional system, a full-time operation completing 8-12 projects monthly would be necessary to justify the investment.

Spray Foam Insulation Cost Comparison

Material costs for spray foam insulation typically exceed traditional methods by 2-3 times initially, with closed-cell foam costing $1.25-$1.75 per board foot compared to $0.40-$0.70 for fiberglass. However, equipment quality directly affects material efficiency and waste, making machine selection a critical factor in overall project economics.

Labor costs show dramatic differences with efficient equipment. A professional-grade machine can insulate approximately 5,000-8,000 board feet per day with a two-person crew, while entry-level equipment might limit production to 2,000-3,000 board feet in the same timeframe, effectively doubling labor cost per square foot on larger projects.

Energy savings for clients represent a powerful selling point that can justify premium pricing. Professional equipment that applies foam with consistent density and complete coverage can deliver 20-30% better energy performance compared to irregularly applied product, creating substantial long-term value that savvy contractors emphasize when explaining price differences to clients.

Performance advantages that justify premium pricing include:

• Superior air barrier properties reducing infiltration
• Consistent R-value throughout the building envelope
• Better adhesion to substrates preventing gaps
• Reduced thermal bridging through structural elements
• Improved moisture control capabilities

Overall project cost varies significantly with different machine options. Premium equipment typically reduces total project expense by 15-25% on larger applications through faster completion, reduced crew size requirements, and lower material waste – savings that can be split between contractor profit and customer value.

Hidden Costs of Ownership

Maintenance requirements represent significant yet often overlooked expenses in PU spray foam machine ownership. Professional-grade equipment typically requires scheduled maintenance every 200-300 hours of operation, costing approximately $500-$1,200 per service depending on the components needing attention.

Replacement parts availability and pricing vary dramatically between manufacturers and should be factored into total cost of ownership. Common wear items like filters, seals, and spray tips might cost $200-$600 annually for domestic equipment but can be significantly more expensive or difficult to source for imported machines.

Training costs for operators often exceed $1,000 per person for comprehensive instruction, with most manufacturers offering 2-3 day courses covering operation, troubleshooting, and basic maintenance. This investment becomes particularly important with more complex equipment featuring advanced digital controls and automated systems.

Additional hidden costs to consider include:

• Transportation and setup requirements for mobile operation
• Climate-controlled storage space for equipment and chemicals
• Power supply upgrades for high-output machines
• Specialized cleaning supplies and solvents
• Downtime costs during repairs or maintenance

Insurance requirements for professional equipment can add $1,200-$2,500 annually to operational expenses, with higher coverage limits typically required for more valuable machines. Many insurance policies also mandate specific storage, transportation, and training protocols that add additional compliance costs.

Chemical supply chain relationships and bulk purchasing power become increasingly important as equipment capacity increases. Professional machines process more material daily, making material cost variations more impactful to profitability and creating economic pressure to secure favorable pricing through volume commitments.

Financing and Leasing Options

Equipment financing programs designed specifically for contractors make premium spray foam machines more accessible, with many lenders offering specialized terms that account for the equipment’s income-generating potential. Interest rates typically range from 5-12% depending on business credit history and time in operation.

Lease-to-own arrangements have become increasingly popular, allowing contractors to begin using professional-grade equipment with monthly payments of $400-$1,200 depending on machine value. These programs typically run 36-60 months with a small buyout payment at the end, converting the lease to ownership.

The tax advantages of equipment investment can substantially reduce the effective cost through depreciation deductions. Section 179 of the tax code potentially allows writing off the full purchase price in the first year, creating immediate tax benefits that may offset 20-30% of the purchase price for profitable businesses.

Consider these factors when evaluating financing options:

• Interest rates and their impact on total cost
• Early payoff penalties or restrictions
• Required down payment amounts
• Maintenance inclusion or exclusion in leases
• End-of-term purchase options and residual values

Manufacturer financing programs often provide the most competitive terms, with some offering 0% financing for 12-18 months on professional equipment. These programs typically require good business credit and may include material purchase commitments as part of the agreement.

Small business loan options through SBA programs can provide longer terms (up to 10 years) and lower interest rates than conventional financing. While requiring more extensive documentation, these loans can reduce monthly payments by stretching capital costs over a longer period, improving cash flow during business growth phases.

Where to Purchase: Market Availability and Suppliers

Alibaba and similar online marketplaces offer the widest selection of imported PU spray foam machines, with prices typically ranging from $3,000 to $15,000 for systems of varying quality. While these platforms provide significant cost savings, they generally offer limited technical support and uncertain warranty coverage.

US-based suppliers like Polymac USA, Master Pack, and Graco provide more comprehensive purchasing experiences with prices ranging from $8,000 to $26,250+ depending on machine specifications. These suppliers typically offer equipment demonstrations, training programs, and ongoing technical support that can prove invaluable for new operators.

Direct from manufacturer purchasing typically saves 10-15% compared to distributor pricing but may limit pre-purchase evaluation opportunities. Distributors generally charge higher prices but add value through:

• Local equipment demonstrations
• Hands-on training opportunities
• Faster access to replacement parts
• Field service technician availability
• Ongoing technical assistance

Bundled packages with materials and accessories often present the best overall value, particularly for new contractors. These packages typically include the spray foam machine, starter chemical sets, safety equipment, and basic accessories at a 10-20% discount compared to purchasing components separately.

The used equipment marketplace offers potential savings of 30-60% on professional-grade machines, though this option carries increased reliability risks. When considering used equipment, focus on machines with documented maintenance history and remaining warranty coverage from reputable brands with established parts availability.

Trade shows provide unique purchasing opportunities with special pricing and direct manufacturer access. Major industry events like the Spray Polyurethane Foam Alliance (SPFA) convention often feature exclusive show discounts of 5-15% and allow side-by-side comparison of multiple equipment options before making a purchase decision.

Installation Requirements and Setup Costs

Facility modifications for various machine types represent a significant but often overlooked expense. High-pressure systems typically require dedicated electrical circuits (30-50 amp service), compressed air systems, and proper ventilation, potentially adding $2,000-$5,000 to setup costs for contractors without existing infrastructure.

Power requirements vary substantially between machine types, with professional-grade systems often needing 220V/50A service that may require electrical upgrades in older facilities. These modifications typically cost $1,000-$3,000 depending on existing electrical capacity and distance to electrical panels.

Air compressor specifications for pneumatic systems present another major consideration. Professional spray foam operations typically require:

• 15+ horsepower compressors capable of 50+ CFM
• Dedicated air drying/filtering systems
• 120+ gallon tanks for consistent pressure
• 220V electrical service for larger units
• Proper ventilation for compressor cooling

Chemical storage considerations add further complexity and expense. Most professional operations require temperature-controlled storage (65-85°F) for spray foam components, with proper spill containment and ventilation systems that comply with local regulations, potentially adding $3,000-$8,000 to setup costs.

Safety equipment and ventilation requirements for PU spray foam application include personal protective equipment, supplied air systems, and appropriate air exchange capability. A complete professional setup typically costs $4,000-$7,000 and represents a non-negotiable investment for contractor safety and regulatory compliance.

Training programs and certification needs round out the setup requirements. Manufacturers typically offer 2-3 day training courses ($800-$1,500 per person), while industry certifications like those from the Spray Polyurethane Foam Alliance can add another $1,200-$2,500 in professional development costs for crews seeking to demonstrate competency to clients.

Machine Selection Based on Project Applications

Residential versus commercial applications demand different machine capabilities. Residential work, typically involving smaller areas with detailed application, may be adequately served by mid-range machines ($8,000-$15,000) that offer good maneuverability and moderate output. Commercial applications generally require higher-capacity equipment ($18,000+) capable of sustained high-volume output.

Agricultural and industrial use cases present unique requirements, often demanding machines with enhanced corrosion resistance and the ability to operate in dusty or harsh environments. These specialized systems typically cost $20,000-$30,000 and feature sealed electronic components and reinforced fluid paths designed for challenging applications.

Roofing applications versus interior insulation create different equipment demands. Roofing work requires:

• Longer hose capabilities (200+ feet)
• Higher pressure tolerance for material delivery
• Enhanced heating capacity for outdoor applications
• More robust pumping systems
• Weather resistance for equipment components

Mobile applications versus fixed installation setups influence machine selection significantly. Mobile contractors typically benefit from compact, self-contained systems that can be transported in cargo vans or trailers, while fixed installations can accommodate larger, higher-output machines that prioritize production volume over portability.

Special application requirements for marine, cold storage, or other specialized environments may necessitate custom equipment configurations. These specialized machines typically command premium prices 15-25% higher than standard models due to enhanced heating capabilities, specialized mixing chambers, or modified pressure systems optimized for unique material formulations.

Scalability considerations become essential for growing businesses. Forward-thinking contractors often select equipment that exceeds current needs but offers expansion capacity through modular design, allowing addition of secondary heating systems, longer hoses, or multiple gun capability as business volume increases without requiring complete equipment replacement.

Maintenance and Longevity Factors

Regular maintenance schedules significantly impact machine lifespan and performance reliability. Professional-grade equipment typically requires systematic servicing every 200-300 operating hours, with costs ranging from $500-$1,200 per service depending on components requiring attention and labor rates.

Compatible chemicals play a crucial role in equipment longevity. Using only manufacturer-approved or recommended formulations can extend pump and seal life by 30-50% compared to using untested alternatives. This compatibility factor represents a hidden operational cost that may offset price advantages of alternative chemical suppliers.

Proper cleaning procedures cannot be overstated in their importance to machine longevity. Daily and weekly cleaning protocols typically require:

• Thorough flushing of material lines with appropriate solvents
• Meticulous gun maintenance and tip cleaning
• Filter inspection and replacement as needed
• Pump lubrication according to manufacturer specifications
• Complete system pressure release when not in operation

Component replacement schedules should be anticipated and budgeted. Typical wear items include spray tips (replacement every 15,000-25,000 board feet), seals and O-rings (every 6-12 months of regular use), and filters (every 30-60 days), with costs ranging from $50-$500 per maintenance cycle depending on machine type and usage intensity.

Manufacturer support and spare parts availability dramatically affect the true cost of ownership over a machine’s lifespan. American-made equipment typically offers parts availability for 7-10+ years after production, while imported machines may have limited support after 2-3 years, potentially rendering otherwise functional equipment unusable if critical components fail.

Extended warranty options provide valuable protection against unexpected repair costs, particularly for contractors relying on equipment for daily income. These warranties typically add 5-12% to purchase price but can cover major components for 3-5 years, protecting against catastrophic expenses that might otherwise derail business operations.

Environmental and Safety Considerations

Material safety requirements when handling PU foam components demand serious consideration and investment. Professional contractors typically spend $3,000-$5,000 on initial safety equipment, including full-face respirators with supplied air systems, chemical-resistant coveralls, and specialized gloves designed for isocyanate protection.

Protective equipment needs extend beyond personal items to include job site preparation materials, ventilation systems, and containment supplies. A comprehensive safety setup typically adds $50-$150 per project in consumable costs and requires dedicated storage space and regular inspection protocols to maintain effectiveness.

Environmental benefits of spray foam applications provide valuable marketing advantages for contractors using professional equipment. Higher-quality machines produce more consistent foam with superior thermal performance, allowing contractors to emphasize energy efficiency benefits that can offset premium installation costs through utility savings.

Regulatory compliance requirements continue to evolve, with many jurisdictions implementing increasingly stringent rules governing:

• Ventilation standards during and after application
• Chemical storage and transportation documentation
• Installer certification and training verification
• Personal protective equipment standards
• Building re-entry protocols after installation

Certifications and training required for professional use add further expense. Most manufacturers offer basic operational training, but professional certification through organizations like the Spray Polyurethane Foam Alliance typically costs $1,200-$2,500 per person and requires periodic recertification to maintain current status.

Insurance considerations for spray foam contractors create another ongoing expense. General liability policies for spray foam installers typically cost $3,500-$7,000 annually with higher premiums than general contractors due to chemical exposure risks. Equipment insurance adds another $800-$1,500 annually for comprehensive coverage protecting against damage and theft.

User Experiences and Industry Insights

Contractor testimonials across different price points reveal consistent patterns. Users of entry-level machines ($1,500-$5,000) frequently report initial satisfaction followed by frustration with limitations as their business grows, typically upgrading within 12-18 months if spray foam becomes a significant revenue stream.

Real-world performance feedback highlights significant differences between machine types. Professional contractors consistently report that mid-range and premium equipment ($10,000+) delivers more consistent application results, reduced material waste, and dramatically improved reliability during extended operation compared to budget alternatives.

Unexpected benefits of higher-end machines often include reduced physical strain on operators through improved ergonomics, simplified troubleshooting through digital diagnostic systems, and enhanced client confidence through professional appearance and operation – factors that justify premium pricing beyond basic performance metrics.

Common frustrations with budget equipment include:

• Frequent pressure fluctuations affecting foam quality
• Temperature control limitations in varied environments
• Higher material waste through inconsistent mixing
• Limited technical support when issues arise
• Shorter operational life requiring earlier replacement

Industry experts typically recommend matching equipment investment to business volume, suggesting entry-level machines only for contractors completing fewer than 5 projects monthly. For businesses executing 5-10 projects monthly, mid-range equipment ($8,000-$15,000) offers the best balance of capability and investment, while high-volume operators benefit from premium systems despite higher initial costs.

Emerging technologies continue to impact pricing considerations, with newer systems incorporating remote diagnostics, mobile monitoring, and automated maintenance alerts. While adding 5-10% to equipment cost, these features can substantially reduce downtime and improve operational efficiency for busy contractors.

Final Recommendations and Decision Framework

Matching machine investment to business stage and volume represents the most important consideration when selecting equipment. Start-up operations with uncertain volume projections should consider entry to mid-range options ($5,000-$12,000) or leasing programs that allow capability upgrades as business develops.

Key features worth paying more for include heated hoses (improving application consistency), digital controls (reducing operator error), and data recording capabilities (documenting proper installation). These features typically add 15-25% to machine cost but deliver substantial operational benefits that quickly offset the additional investment.

The decision to upgrade from entry-level equipment should be triggered by specific business milestones, including:

• Consistent project backlog exceeding 3-4 weeks
• Regular equipment operation exceeding 20 hours weekly
• Recurring foam quality issues despite proper technique
• Expansion into commercial or specialized applications
• Growing crew size requiring increased production capacity

Cost-effective alternatives for specific applications can include focused equipment designed for particular uses. Contractors specializing in rim joist work or small residential repairs might find specialized low-pressure systems ($2,000-$4,000) more appropriate than general-purpose machines, while roof-specific equipment offers optimized features for that application.

Long-term strategy for equipment investment should consider business expansion plans and market direction. Contractors anticipating growth into commercial markets should select equipment platforms with upgrade pathways or modular design, allowing capability expansion without complete system replacement as business requirements evolve.

Building a complete spray foam business system extends beyond just the machine purchase. Success requires integrated investment in training, marketing, safety equipment, and chemical supply relationships. The most successful contractors typically allocate 25-35% of their initial budget to these supporting elements while selecting equipment that balances immediate needs with growth capacity.

Frequently Asked Questions

What’s the minimum I should expect to spend on a professional-grade spray foam machine?

For truly professional-grade equipment suitable for full-time operation, expect to invest at least $15,000 for a reliable system. While lower-priced options exist, machines in this price range offer the reliability, output capacity, and features necessary for consistent commercial-quality applications.

Do imported machines really save money in the long run?

While imported machines offer lower initial prices (often 40-60% less), they typically result in higher lifetime ownership costs due to increased maintenance requirements, shorter operational life, limited parts availability, and reduced application consistency. They may be appropriate for occasional use but rarely represent true savings for regular operators.

How long should I expect a spray foam machine to last?

With proper maintenance, professional-grade American-made spray foam machines typically provide 7-10 years of reliable service. Mid-range equipment generally offers 4-6 years of dependable operation, while entry-level machines often require replacement or major overhaul after 2-3 years of regular use.

What’s the most important feature to prioritize if I’m on a limited budget?

If operating with budget constraints, prioritize heated hose capability and reliable ratio control. These features most directly impact foam quality and application consistency, making them worth the additional investment even when other advanced features must be sacrificed.

Is it better to lease or purchase spray foam equipment outright?

For established businesses with consistent cash flow, purchasing typically provides better long-term value. For growing operations or those with variable project volume, leasing offers reduced initial investment and flexibility to upgrade as needs change, though total costs over time will generally exceed direct purchase price by 15-30%.