Acquiring a machine or equipment for your business is a major investment decision. Of course, you will want high-quality equipment that will not need frequent upgrades or changes in the long term. However, nowadays, there are a lot of choices to pick from, and sometimes, the array of options can be confusing and overwhelming. For instance, if you are shopping for a conveyor system for your warehouse, how do you pick the right one from the hundreds of conveyor designs available today?
As you look for the right machine to address short-term or long-term needs, you must consider the right factors to ensure you pick the best equipment for your business. This article compiles the latest tips and considerations to ensure your chosen equipment is of the latest technology for efficient and increased production.
5 Tips on How to Make the Right Equipment Purchase
1. What Is Your Business Reality?
Before acquiring your new equipment or machine, it’s important to understand the business objectives. This protects you from being influenced by aggressive campaigns that state unrealistic claims. Some of the questions you must ask yourself include:
- How will the equipment make you more successful in the market?
- Is your goal to increase productivity?
- Will the machine help you stay ahead of your competitors?
- Is it possible for you to upgrade your existing equipment instead of purchasing a new one and get improved performance?
Answering these questions quill help you assess if the new equipment will improve your business. It will also help you avoid buying equipment that may become redundant.
2. What Is the Device’s Output?
Have you checked the output of that new machine you like? When considering new business equipment, it’s important to assess its performance, utilities, and price.
Can the machine provide your business with maximum production output without high utility consumption? For example, settling for equipment that operates on high gas or water consumption usage will make you spend more than the cost of labor and materials. This may lead to high overhead costs that may undermine profits in the long run.
3. Invest in Digital Technology
Companies that are digitally tech savvy on their machines or equipment have reported increased productivity, lower operating cost, and better product quality. This is according to a 2017 survey done by Canadian manufacturers.
This increased productivity has been driven by the ability to predict, prevent downtime, and optimize equipment effectiveness and maintenance. The cost savings are from:
- Higher automation that saves labor costs;
- Real-time monitoring of production and quality control, which reduces waste and rework;
- Predictable maintenance that prevents costly and unplanned repairs.
Getting the latest equipment not only lowers the cost of production but also helps you stay ahead of competitors since you’ll have higher-quality output.
4. Compare Prices
Before settling on a piece of equipment, take time to browse for options and look for newsletters targeting specific industries. Clear your schedule to attend trade shows where you can be more hands-on with the equipment. Additionally, contact various companies for more information. While price is a major factor when purchasing business equipment, don’t let it guide you when choosing a supplier. Consider their post-sale services and reputation by getting references. Ask for better warranties or an extended customer service plan if you are a loyal customer. This will ensure you get the best value for money when making every purchase.
5. Are You Buying New Equipment or Used One?
Deciding on whether to buy used or new equipment will depend on the budget and your business reality. For instance, getting a used gas radiant heater may be significantly cheaper than buying a new one. However, a new heater would be wise if you want equipment with the latest technology and a long warranty.
Remember, old equipment may also require regular updates, repairs, and maintenance checks. Therefore, ensure you weigh the costs of getting a new machine against those of maintaining an old one.
When choosing the right equipment for your business, the most important questions to ask yourself are if the company needs it and how it will improve production. Will the machine be for long-term or short-term production? You also need to weigh the budget and the day-to-day running costs of maintaining it. Overall, take your time to research and examine your options before settling on any new equipment.