If you’ve ever run your own business you know that margins are always tight and eeking out a profit can be a running battle; even when the economy is going gangbusters. Experienced business owners also know that there’s always something that’s taking money from the bottom line. Whether it’s capital upgrades or labor costs, any dollar that gets spent is a dollar that won’t be going into the profit column.
Of course serious businessmen and women know that sinking profits back into your business can pay out in a major way. That’s because investing in upgraded equipment and facilities increases productivity, morale, and can even be used as an enticement to draw in new clients. (New clients love the idea of working with a company that won’t be using broken down equipment as an excuse for poor work.)
Purchasing new equipment is, more often than not, easier said than done. There are so many complications that can gum up the process that many business owners put it off until the last possible moment. That idea only works until the machine stops working in the middle of an important job.
Fortunately, purchasing new industrial equipment like an incline conveyor, forklift or pallet jack does not have to break the bank. Even better, you can get the most from your purchases if you just ask some simple questions.
Do We Really Need it?
The first question you’ll want to ask before shelling out for capital expenses is, “Do we really need this equipment, or do we simply want it?” You’ll be surprised at how much older equipment your staff wants to replace that’s still actually in pretty good shape.
Look, we understand the desire to have the latest and greatest of everything. But when you’re talking about items such as bulldozers, which can cost several hundred thousand dollars, you don’t want to get one unless you really need it.
Maintenance is one factor that can definitely tip the scale towards buying is maintenance. If your bulldozers or conveyor belts are missing more work than your worst employees, it’s time to cut them loose.
New or Used?
Buying a new vehicle is always a lot of fun, but it comes with a hefty price tag. Unless rolling around on a brand spanking new forklift is vital to the success of your business, you might want to consider buying used equipment.
Many used items have been barely used at all because they were originally owned by businesses that very quickly went out of business. If you don’t mind a scratch or two, these are a pretty great deal.
Is Leasing an Option?
In a lot of industries, big equipment like incline conveyor is only used on occasional jobs and sits idle the rest of the year. If you don’t need a bulldozer on every job, your company can save big bucks by simply leasing one for the duration of the contract or job.
At the end of the day, your business doesn’t have to mortgage its future in order to get good, working equipment. If you haven’t got your heart set on new gear, your bottom may look a lot sweeter at the end of the year.