Buying equipment is an important part of maintaining an industrial company, but many businessmen fail to take the appropriate measures to ensure that their purchases work in favour of the business. Below are some mistakes that you should try to avoid when purchasing equipment:
- Not considering the level of need – a mistake best avoided when it comes to big purchases in a business is not knowing their priority. Making a purchase for a specific equipment and later coming to the realization that it won’t be needed for a while (and perhaps, adding to the injury, realizing you need a different piece of equipment in the near future) can be a very costly mistake that won’t bode very well for the performance of your business.
- Not considering the suppliers – a common enough mistake that people make when purchasing industrial equipment is failing to research their suppliers. Equipment is expensive, and finding creative ways to keep costs down is often beneficial to the company. However, to do so at the expense of functionality or lifespan of your equipment is simply unwise. Equipment such as inflatable pipe plugs need to be reliable – or you will find that the piping or ducts you thought were blocked, actually were not (and this can be quite dangerous depending on the work you do). Make sure to thoroughly research your suppliers, and ascertain the quality of their equipment.
- Not considering alternative options – when it comes to equipment, not everything has to be brand-new, and not everything has to be purchased outright. Of course, there are plenty of equipment that need to be bought in brand-new conditions, especially if they have pesky legalities surrounding their usage status. However, if you consider equipment such as proof load test bags, you will see that a few years of usage has not made much of a difference in terms of functionality. The point, though, is that you can save a considerable amount of money by opting for this route, and it can be especially useful if you are short on funds at the start of your business operations.
- Not considering waiting times – and lastly, do not forget to factor in the waiting time, or the lead time. Simply explained, this is the time period between your purchase of a piece of an equipment, and the time it takes to have it delivered to your company. Depending on what you ordered, this waiting time might only include the time taken to ship the equipment to your company, whereas in other cases, this can even include the time taken to manufacture the equipment from scratch (a likely scenario if you ordered rare equipment, or customized equipment). The mistake is that many businessmen fail to correctly account for the waiting time, leading to financial losses due to delay in company operations. As such, make sure to make your purchases well ahead of the time they will be needed.