Understanding Equipment Manufacturer Costs
and How To Save Money
Did you know that out of each $100 you spend on preventative maintenance, $50 is wasted? Yep, you’re flushing half of your maintenance budget down the toilet. And that’s only one of the equipment costs that’s affecting your bottom line.
How much money could you save by learning the hidden truths of equipment manufacturer costs? Could you use that revenue to improve your company?
Well, you’re in luck. The sections below detail the often overlooked and misunderstood facets of equipment manufacturer fees. If you want to learn how to slash your overpriced manufacturer costs, read on.
Know When to Buy
Purchasing equipment may not be your best option. Leasing, or even renting, is better in some cases. So, before you start shopping for a new piece of equipment, sit down and write yourself a list.
- How long will you use the equipment?
- How often will you use it?
- Is the equipment essential?
- How often does such equipment need maintenance?
- What about replacement parts?
- What are the costs of these?
Now determine the costs of this equipment if you rented it, leased it, or bought it. Also, consider the price of the equipment if you were to purchase it used. Commercial equipment, especially heavy construction equipment, is almost always worth purchasing used.
Where Can You Find Replacement Parts?
It’s rarely cost-effective to buy equipment if the replacement parts are difficult to find. Before you buy it, check out its reference manual and the manufacturer’s website. Look for parts that you’ll have to replace often.
How much are they? Are they easy to find? Can you substitute those parts with less expensive substitutes from another manufacturer?
Remember, parts are engineered to fail. Knowing where to get equipment made and where to find replacement parts are the keys to avoiding downtime.
Equipment manufacturing companies, like Kor-Pak, understand the importance of this principle. They design their entire business around it. Customers like you hemorrhage money when your equipment fails and production stops.
Your uptime is paramount.
Cutting Equipment Manufacturer Costs Through Negotiation
What you see is never the final price. Equipment with a high price tag is always negotiable. Sometimes that may mean waiting a month for a sale or searching for a coupon code. Other times it means a bit of healthy haggling with the salesperson.
Even if you can’t cut the upfront cost, you can cut costs on the backend. Ask your salesperson about qualifying for free equipment manufacturing shipments. Also, ask about warranties and reduced-price replacements.
Know What to Maintain and How Often
If you over-maintain your equipment, you’re wasting your money in parts and man-hours. Sure, uptime is paramount. But, is it more cost-effective to find a manufacturer who’ll send you a replacement part quickly?
You’ll have to perform your own analysis to determine whether this approach is right for you.