How Much Does Your Equipment Really Cost?
While it may be tempting to glance through the options and just get it over with based on price, consider this: There’s more to the overall price than just dollars-and-cents. Yes, it’s the easiest metric to haggle over. Yet when the pen gets ready to meet the signature line, the decision-making process needs to include a few more very important components of real product cost.
We agree low cost may look very appealing. What happens when the low-cost breaks the next day? If there is no service option, the investment becomes a sunk cost – it cannot be recovered because the money has already been incurred and spent. Things can get uglier still when the attempt is made to salvage a piece of newly–purchased sub-standard equipment by putting more money into it in a vain attempt to repair it. That’s when the equipment cost becomes a sunk cost fallacy, as more money is spent trying to justify the money already spent by spending even more time and money trying to salvage… we’ll call it a high-cost money pit.
How much does your equipment really cost?
When you purchase based on dollar price alone, there’s also an opportunity cost – the cost of not pursuing an alternate plan of action. Consider the purchase made based on low-cost as the focus. Consider it could break the day after it is unpacked. Had the purchase been made of a higher quality, value-added piece of equipment, the real cost would have been greatly reduced.
How?
Consider ALL the elements that go into price. It’s not just the dollars and cents; it’s what you’re getting for those dollars and cents that make the difference between making a deal and making the best buying decision. A capital purchase is a long-term investment. Invest wisely by considering everything involved.
Base cost: This is only the start. Unfortunately, it’s the make-or-break decision-maker for too many who buy now and regret later. Before pushing the pen to the paper, make sure you consider the other elements of the equipment package and ask questions about:
Product:
Manufacturer: Where are they located? How long have they been in business? What is their reputation for quality and service?
Warranty: Is there a warranty? What is covered? Is it a full warranty, and for what time period? What components are not covered? Most importantly, who will honor the warranty? Where are they located? Is it the manufacturer, a distributor, a certified repair network, or an uncertain entity? Do they have the resources to ensure your satisfaction if warranty work is needed? If a motor goes down, is there a loaner motor available right away? What is the turn-around time if warranty work is needed?
Service:
Customer service: Is the company responsive, thorough and knowledgeable? Are their representatives courteous and ready to support you? If you have a problem or concern, do they remain courteous and responsive? Can you reach a real person by phone or email? Does the person have a name, and can you call and talk to them if you have questions later?
Product service: If service is needed, is it available for your product quickly and conveniently? Who will repair your product when needed? Where are they located? Do they speak English? Are loaner components available if needed?
Is there service available before, during, and after the sale? From who? The manufacturer, a distributor, or a big box outlet? What kind of service? Are real people available to answer your questions, handle issues, and ensure your satisfaction? Where are the service people located, and are they reasonably accessible?
Package:
Standard equipment: This is where the astute buyer needs to sharpen their vision, read between the lines, and study exactly what comes with the equipment being purchased. What needed pieces of equipment actually come with the product for the quoted price? Is it a turn-key operation? What are the specs, and what is needed to make the product work for your application (electric, etc.)?
What features and components are part in the package when purchased? What is the product made from – actually? What are the inner components constructed from? Check the materials, the gauge of metal, the number of bolts, pins, how the components are put together, and ensure that what you are purchasing is the highest quality that can withstand the application for the long-term. Beauty is only skin-deep, unless you ensure otherwise.
Available options: Outside of standard equipment, what is available to add to the product to upgrade it, allow it to be used for other applications, and make it more useful? Are these components stocked and easily available? How quickly can they be shipped, and what kind of service and warranty is available for them?
The cost of equipment goes far beyond the product itself.
Service from companies that are staffed with professionals you can trust is priceless. Before you purchase your next assembly or tapping arm, check out all the components associated with cost and contact us! Don’t settle for less when you can purchase the best – manufactured by people who care about your workforce.
