Equipment makes up for at least 20-30% of a business’s capital. As a business owner, how can you save money on buying equipment? Is it even possible?
Many companies tend to overspend on equipment, thinking that in order to perform well, you need brand new items. That is not entirely true. Yes, brand new equipment is better than old ones in many aspects, but if it’s going to drain your budget, it’s not worth it.
Here’s how to save money while buying equipment for your business:
1. Wait for sales and use coupons
Wait for commercial equipment stores and dealers to hold sale events before buying what you need. A discount is a discount and you shouldn’t miss out on a bargain when you see one. Non-essential equipment such as transparent waste recycling bins or office decorations, for example, should be bought for a much lower retail price. In this way, you have more money to buy more important equipment.
Another great way to save money on equipment is to use coupons. Look for coupons at the checkout counters, on the company’s website, or other promotional materials.
2. Consider buying secondhand
Secondhand equipment is much cheaper than their brand new counterparts, and will definitely save you a lot of money. Don’t hesitate to buy secondhand for items that you don’t need to be brand new. You can seek out excellent bargains from dealers, online sellers, or a company that is closing nearby.
However, since the condition of used equipment will vary depending on the previous owner, make sure to inspect equipment thoroughly before you make the purchase.
3. Don’t buy what you don’t need
Don’t overspend on equipment when opening up a business. It will not only offset your budget, but it will also be wholly unnecessary. Hence, don’t buy what you don’t and wouldn’t need to operate your business. Stay away from overly complicated equipment, too, and stick to the basics.
4. Know when to repair
Before replacing a piece of equipment, make sure that it is no longer repairable. New equipment can take a big chunk out of your business expenses, but repair fees won’t. So, make sure to have it checked out by a professional repairman. If they say it’s no longer salvageable, that’s the time you should get a new one.
However, if the repair costs will rack up to more than 50% of the price of brand new equipment, then it’s probably better that you go straight to buying a new one.
5. Look into energy-efficient models
Buying cheaper equipment may seem like a great way to save money, but it can be actually costing you more in the long run. Instead of regular appliances, look for ENERGY STAR labeled models. Products with these labels can use up to 50-70% less energy than regular ones, which can save you hundreds, if not thousands, of dollars in utilities every year.
Finally, learn how to maintain your equipment to keep it running smoothly for as long as possible. This way, you won’t have to pay for costly repairs or undue replacement.