When it comes to company expenses, equipment costs from purchasing equipment, to repairing it, to replacing it can really add up. Figuring out the best way to maximize your equipment and minimize some of these costs is really important. Finding the right way to take care of your equipment needs will be unique to you but applying some of these ideas can get you started.
Buy Used or Rent
One of the best ways to offset the cost of equipment is to buy used or to rent equipment on an as-needed basis. Buying used equipment is an especially good idea if that equipment is any kind of vehicle—because vehicles depreciate incredibly fast (usually losing 20 to 30 percent of their value within the first year), purchasing vehicles with light use will allow you to save a lot of money without compromising the quality of the equipment.
Renting can be a great idea as well if the piece of equipment is something you use only occasionally. But do the math to figure out if renting will really be worth it in the long run.
Prevent Replacement With Maintenance
Another great way to save money on equipment is to lengthen the life of the equipment you do purchase. Ensure that you calculate the cost of different maintenance steps and integrate that cost into your business expenses. Planning for these expenses will help you make sure to actually pay them as they are sometimes the first thing to go otherwise.
Adopt the 5S methodology, a methodology that guides your process of going through equipment, identifying what is actually needed, and caring for equipment. During the Shine step of 5S, employees perform maintenance to ensure equipment lasts longer. Doing this makes a big difference over time.
Train Your Employees
One of the biggest causes of premature damage to heavy expensive equipment is user error. Focusing your effort on repeatedly and consistently training your respective employees on how to use the equipment properly will help you prevent repairs in the first place. In many situations, employees may not even realize the effect of certain methods of maneuvering a machine on the machine’s functionality.
In summary, being smart about your equipment and saving money in the process requires you to think carefully through each stage of your company’s equipment’s life. Figure out where the main gaps are in your particular situation. Maybe you need to buy more used equipment, or maybe you need to perform more maintenance. Being able to figure out where these gaps are and coming up with solutions for them will help you to save money in equipment costs in the long run.
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