This is one of those important questions every small business owner should consider when equipping their factory.
With the increasing pace of technological advancements, many entrepreneurs think using brand-new materials are always the best option. But it is not always so.
First, analyse your business needs to determine whether you are better off with a new, refurbished or fairly-used equipment. For instance, will the new material you are hoping to acquire help you control temporary surge in demand? How about the long-term, will the machine take you well into the future?
There are obvious benefits of buying a used industrial equipment. For one, you can save a lot of money. However, it also pays to consider every aspect of the situation. Not all equipment is good at second hand value. So, it is just as important to weigh all your options.
The most popular reason companies buy a new equipment like new forklifts is to keep up with the pace of the latest industry best practices. True, new equipment improves your competitive advantage and allows you to perform more productively, but it is also your most expensive option.
This is easily the most affordable solution because it will only cost you a percentage of the original value. You can scan the market for the most favourable price and have the equipment shipped to you without rebuild or extra support costs.
It is also ideal to have an expert accompany you for inspections; a second opinion is always advisable. For example, if you are buying a used centrifugal pump, bear in mind that you may have justify the decision to your chief financial officer. Convince them on how the purchase will improve the company’s productivity.
What to look for when buying a used equipment
Contrary to what most people think, used machines or spare-parts are not bad for business, so long as you approach the decision wisely. In fact, you may end up using them longer than a new product if your maintenance system is properly carried out.
Here are some things to consider when looking for a used equipment to buy.
- The reputation of the seller
Beware of buying materials from total strangers because you cannot trust the value they offer. This means doing a comprehensive business research and asking all the right questions. Look up their business age, public financial records and customers’ testimonials too.
- Check for inclusions
When buying a used item, ensure every component is in place. If it has been rebuilt, you can save up to 40% compared to buying a new equipment. Plus, each new added component in the refurbished equipment comes with its own warranty.
- Check the age/operating hours
When buying a used car, you check the mileage. Similarly, it is essential to find out the age of the equipment you are buying. Don’t buy one that is nearing the end of its lifespan or you will regret it. Ask your seller or go with an expert who has an eye for such things.
- Maintenance records/ and test run the machine
Before you commit financially to any purchase, find out if the machine has been regularly maintained. Poorly maintained systems tend to have a shorter lifespan.
How well has the machine been running in the past? Has it been refurbished recently. Was it handled by manufacturer-approved technicians? Finally, test run the equipment and look out for any red flags. Only pay when you are satisfied with the performance.
A used machine can boost your business’ productivity, if you perform all the right pre-purchase precautions.