As a business owner, you have to manage your costs. There are so many expenses to think about, from employee salaries to paying the electricity bill, and you have to balance these against your turnover to ensure you make a healthy profit.
One of the biggest expenses for any organization is equipment. If your business is involved in manufacturing or engineering, there will be a huge quantity of specialised machinery and tools involved in production. And even for a small office-based startup, there will be plenty of computers, hard drives, printers, and more.
If your equipment costs are going through the roof, there are ways to save money. Whether it’s a warehouse cherry picker, a gallon water filling machine, or simply an office paper shredder, you don’t have to break the bank when it comes to supplies. By following these five tips, you can reduce your equipment costs and maximize your profits.
Negotiate
Contact a range of different suppliers and get a quote for the equipment you need. If your preferred supplier can’t offer you a good deal, don’t be afraid to walk away and find a competitor. After all, you need to look after your bottom line. You may be able to negotiate a bargain if you are a regular customer, or a discount for buying in bulk.
Rent, Don’t Buy
Some equipment can be rented, especially if it is used seasonally like agricultural machinery. Renting means you only pay for the period of usage, and don’t have to worry about storage and ongoing maintenance. You know whenever you receive the product it will be in peak condition, and can have it for as little or as long as you like.
Buy Second Hand
Not all equipment has to be bought brand new. Many items can be bought second hand, and the quality will be just as good as a product fresh out of the box. A pre-used item will come at a considerable discount, saving you a great deal of money. Just make sure to properly inspect the product before buying, and negotiate a warranty period so you can get a refund if it doesn’t work.
Look After It
The better care you take of your equipment, the longer it will last. Ensuring it is properly stored away when not in use will protect it from the elements, and maintaining it is essential, especially for machines with moving parts. Equipment should be regularly inspected for any signs of damage or loss of function, and broken parts should be repaired or replaced promptly to minimize further damage.
Train Staff Properly
Paying to replace or repair broken equipment is a frustrating expense, as it could have been avoided. Human error is one of the biggest reasons for malfunction and breakdown, so ensure your employees are adequately trained in how to use any new tools, as well as how to store and maintain it properly. This will minimise the risk of damage, as well as keeping your staff safe on the job.
