One of the biggest challenges faced by manufacturing companies is providing a wide variety of products to suit the market demand. The even bigger issue is sourcing the necessary industrial equipment to fulfill the customer’s demand.
Whether you are a large-scale manufacturer or a small shop, you have two options for purchasing industrial equipment.
It could be purchasing a piece of new equipment or a used one.
Both options need certain considerations before reaching a decision. Like with everything else, there are pros and cons to whatever you choose.
Understanding these pros & cons beforehand will put you in the best position. Rapidly changing technology might influence you to buy a piece of new equipment. But, that doesn’t necessarily mean the best decision for your business.
First, you need to ask yourself the purpose of purchasing the equipment. Does it help you increase orders & thereby revenue or are you looking more long-term?
Here are some of the Pros and Cons of buying new equipment
If you’re planning on using your equipment for a long period of time, then investing in new makes sense. Chances of breakdown are rare & even if it does, the warranty covers it.
If the brand image is your concern, then new equipment will give you a professional look & also boost customer confidence.
A couple of concerns around buying new equipment have got to be the price & lead times. You will have to bear the costs upfront which is not always an option if your budget is tight. The lead time includes identifying the right vendor, along with time spent negotiating, ordering, and paying. You also need to factor in the depreciating asset value.
Here are some of the Pros and Cons of buying used equipment
Not all manufacturers can afford to buy new equipment & used equipment does come with certain advantages. Most of the used equipment can be purchased at a deal price and you can get something that’s almost new for a fraction of the price. This means that someone else has to absorb the cost of depreciation.
Just because something is used, doesn’t mean it’s unreliable. There are many suppliers who offer guarantees, support, and extended coverage on their used equipment. Lower prices give you room to buy more equipment, in turn, boost production further.
Like everything else, purchasing used equipment comes with its downside. You have to be cautious about who you’re buying from because anyone can sell used equipment. You need to extract information on how the equipment was cared for, used, and maintained. You will be relying on what the seller is telling you, but you can cut the risk by asking the owner to provide you with relevant documents. Sometimes the equipment, though functional can still be outdated.
Make sure you always weigh up the options of a newer version before handing over any cash. Sometimes, you may get a warranty included if you buy from a dealer, but this is not always the case.
There are advantages & disadvantages to both used and new. As a business owner, you must weigh the options and decide what is best for you.
You save both time & money while choosing used versus new industrial equipment. At ToolScribe, we have access to a large number of used machinery that is ready for inspection at an excellent selling value.
ToolScribe gives you a clear picture of the machine timeline, when was it purchased, its working condition & when was it last serviced.
Interested in buying used equipment? ToolScribe will help you choose the right set of used equipment for your need.