When shopping for new industrial equipment for your business, we’re often faced with a range of options, from vintage used machines to the Cadillac from top labels and everything in between. Whether you’re looking to purchase with cash or finance, it’s easy to start your evaluation with the lower cost units first, however it’s important to consider the operating, maintenance, and quality control in your cost analysis. The trick is maximizing your investment, putting each dollar to work in the most efficient and effective manner.
“Cheap is Expensive”
While not a universal truth, in the case of manufacturing equipment where uptime and tolerances are concerned, running unreliable equipment can cost lost time, waste raw materials, and potentially lose contracts for delays or poor quality. Was that 15% price difference really worth it? I suspect you’re shaking your head right now. Good call.
Spend More Now To Make A Brighter Tomorrow
Sometimes it makes sense to go used; whether it’s for cost reasons or a particular type of machinery is no longer made, as is the case for certain specialty tool and die or woodworking applications. As you speak to different sellers and service shops, some key questions to ask include the reliability and serviceability of the equipment. Are parts readily available within your region or would they need to be shipped overseas? Are there local maintenance shops familiar with this brand/model? Consider the cost of losing one days’ production versus an entire week waiting on parts or a qualified repair technician to get on site.
How Important Is It To Your Business?
While we don’t recommend purchasing bargain-barrel equipment for your day-to-day operations, that doesn’t mean every machine you purchase can or should be top-tier. A key determining factor should be how critical the machine is in your “bread and butter” operation. For example, if you’re a printing business who sees 10% of orders requiring a perfect binding, the rest are loose or stapled, it would not make sense for a large investment in an upper-tier binding machine. Keep the money where most of your operation and revenue is likely generated: digital and litho presses.
Whether your business is in a growth spurt or needing to retire aging equipment, understanding your options for funding an equipment acquisition can be tricky. Let the equipment finance professionals at ENGS explain your options and provide an equipment finance plan that makes sense for your business.