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Three Ways to Save Big on Equipment Purchases

If you walked into a grocery store and saw two shelves of identical boxes of cereal that had different prices on them, would you buy the more expensive box? Whether you’re holding an MBA from Harvard or high school diploma, the answer to that question sounds like something of a no-brainer. Of course you would pick the box with the lowest price; or would you?

You might be surprised to find out that plenty of successful businessmen and women who should know better frequently cost their companies thousands of dollars every year by spending more on big equipment purchases than is necessary. This needless waste of precious capital resources is done despite hours of research spent looking for the best deal on big ticket items like bulldozers, forklifts and warehouse shelving units.

So what’s the cause of all this economic waste? Purchasing departments that look at buying new equipment as their only option for replacing older or outdated gear are selling themselves short.

If you’re looking for a few good ways to save on big equipment purchases, here are some ideas that can really help you out.

Lease Instead of Buy
Today’s business environment is as competitive as it’s ever been so businesses that want to stay in the hunt need to run lean and mean. One way of keeping costs in check is by making certain that your high end, high price, equipment is being used as often as possible. In some industries, however, that’s just not a realistic notion.

For example, a contractor may need an enclosed conveyor to remove debris at a jobsite a couple times a year. When that gear isn’t being used, it’s not earning its keep.

To do an end run around dead weight equipment, many businesses are simply leasing big ticket items only for the time they need them. This saves big bucks on the initial purchase and eliminates depreciation entirely.

Scour Auctions
Another great way to cut equipment costs is by scouring heavy equipment auctions for good deals. These events normally feature a huge range of items that come from bankrupt businesses that just couldn’t cut it. While no one is keen to profit from another person’s misfortune, there’s no reason to pass by good deals.

You might be surprised to find that many of these items were barely used by their original owners and are in incredibly good shape.

If you’re comfortable purchasing in an auction environment, this is definitely the way to save some money.

Maintain Your Old Gear
Too many businesses could avoid buying new equipment all together if they would just take care of the inventory they already own. It’s absolutely shocking to see how many contractors and construction companies don’t maintain proper maintenance schedules. If they did, they would very quickly find out that caring for the vehicles and equipment you already own is a lot cheaper than buying new gear.

When every dollar is critical for maintaining a healthy bottom line, cutting costs on equipment purchases can put your contracting business or construction firm in the black.

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