Process equipment is a significant business investment, and the decision to purchase one can be a daunting prospect. You’ll have to think about the model, size, brand, technology, and many other features of the machinery you need. There are usually a lot of things to consider to make the purchase suitable, give you a return on investment, and serve the business for a long time.
If you do your homework well before making the sale, you can save yourself much stress during and after the purchasing process. You may save time and money, too. Here are seven equipment purchasing tips to help you avoid pre- and post-purchase problems:
- Consult Before The Purchase Process
When making a decision that involves a considerable amount of money, it’s advisable to hire a consultant. They’ll help you do a cost-benefit review, which helps to give you a justification for the sale. It also determines the pros and cons. Consulting helps you to notice challenges you may have overlooked, financially or otherwise.
Because consultants are neither supplying, competing with you, nor involving themselves directly in your business operations, they can give you really sober advice about the equipment acquisition.
2. Do Your Research
Research is crucial to ensure you’re getting the right and suitable equipment. While relying on referrals, suppliers, and online reviews may be an excellent place to start, deeper research for independent views is needed. Sometimes reviews can be deceiving or be influenced by a supplier. Seek out professionals in the industry who know the specifications required for your kind of processing needs.
Talk to other entrepreneurs who’ve purchased similar equipment, and get first-hand reviews and recommendations from them. Ask about the performance, and any issues they’re facing with the equipment. Being a member of an industry association can come in handy with getting advice and recommendations on where to buy industrial machinery. You can also benefit from group purchasing.
3. Don’t Settle, Shop Around For Suppliers
Technology has allowed people to access a wide range of equipment far and wide. Don’t just settle for one. Look around as much as you can, and make comparisons. Look for print information such as newsletters targeting your industry, and attend trade shows to get the true feel of the equipment firsthand. Look for more than the price when considering the most suitable supplier. Consider suppliers who give better warranties for the equipment.
Ensuring you purchase your equipment from a reliable supplier is as essential as the equipment you’re buying. It’s because you may need to count on them to deliver the equipment safely and timely. You’ll also rely on them for servicing repairs, maintaining the machinery, purchasing spare parts, and training your employees on its proper use. You can check the supplier’s status in the relevant industry association newsletters or websites, and find out their standing. While you’re there, check out the association’s policies on dispute resolution.
4. Assess Your Needs
Everybody likes to buy new and trendy things, but business purchases are made to make profits. The money you spend on the process equipment is a business expense coming from your business’ income. It’s therefore essential to look past what you want, and get what you need. Check if the business challenges can be fulfilled by used or refurbished equipment instead of a new one.
Assess your current and future needs, and see if you actually need actual ownership of the equipment. Sometimes, leasing or renting could be an option instead of buying. Assessing your needs helps you understand your objectives. Some of the things you need to evaluate include:
- Do you really need to make the purchase?
- What are you seeking to improve? Is it efficiency, cost savings, or productivity?
- Will it save you costs?
- Will it make your business more competitive?
- Can an upgrade on your current equipment work?
Ensure you can answer these questions before making a purchase. This will keep you away from any subjective influences.
5. Evaluate Your Budget
Sometimes the amount you can afford to pay for the equipment and the actual price of the equipment are two different figures. You must evaluate the features and qualities you see in the hardware, and try to align them with your business needs. This may include processing capacity, reliability, efficiency, technology, environmental impact, and performance.
Put your requirements against your budget, and consider the long-term worth of the equipment. You may find that purchasing equipment that’s greater than your budget may be cheaper in the long run, as it will have less downtime and repair expenses. A cheaper option now might need replacing sooner than if you have exhausted your budget and purchased better quality process equipment.
6. Consider The Digital Technology Advances
Technology can help you reap impressive benefits through reduced operating costs, improved productivity, and product quality. But, technology trends and advances change and improve with time. The ability for processing equipment to adapt to future technological advancements and business needs is crucial. It won’t be economically sensible to purchase hardware now, when you think that hardware will make future business upgrades difficult.
7. Prepare For The Transition Period
The top reason for purchasing process equipment is usually to streamline workflows and increase productivity. However, the issue that arises with new equipment is the transition process. Since training is essential with a new purchase, you need to plan what happens when employees are undertaking training.
Planning for the transition is a crucial part of the purchasing process. Ensure that part of the team gets trained before the equipment arrives, to avoid any production crisis.
Final Thoughts
Process equipment is a significant purchase in a business, and it plays a critical role in easing and streamlining workflow. However, such equipment comes at a high cost. This makes it vital for you to carry out due diligence before the purchase.
Ensure you do your research well, consult professionals, and evaluate your needs, budget and suppliers. You may realize that used equipment will serve your needs better instead of spending vast amounts on new equipment. Either way, the few tips above can help make your purchasing process more manageable.
