Buying a new machine or equipment is common in the business where manufacturing is involved. Even SME’s are required to get into the decision of buying or selling their workplace equipment in order to meet the production needs. This may seem a regular task for any manufacturing company but taking a decision on purchasing a new or used machine is very crucial as it puts your investment on risk. Moreover bringing in new machinery at your workplace or selling out the used one is also asking for labor cost as moving machinery from one place to another is a complete process.
Purchasing machines or equipment can be either profitable or can lead your company to a loss, therefore, the company must take careful considerations at the time of buying machinery for manufacturing purposes. This blog can help you identify those few things that you can consider before finalizing your decision of purchasing any machinery.
1) Buying New or Used Equipment
For business starters, buying used machinery is always the preferred option as it comes under your budget. But then again you are required to run an assessment on the used machinery you are buying to make sure the equipment is in perfect working condition and meets the requirement you are looking for.
2) Number of Units Expected
A production unit is an important aspect to consider and check before purchasing any equipment. A company needs to be sure of the amount of production unit the machine can produce under the price it comes in. An ideal machine for any business is one that produces a maximum amount of units per day in comparison to the current machinery they have. There is no point in buying machinery of the same performance caliber.
3) Price comparison
When it’s about spending money, every company owner becomes extra careful which is rightly so. Buying equipment that works similar to the already in progress machinery is a waste of investment. Therefore price comparison is very important. You may find vendors offering different price for a same machine or equipment, here you need to figure out the differences they offer in that machine, for example, after-sales service, warranty, additional features of the machine and other machine treatment tools. Compromising over quality at the time of purchasing can backfire in the long run, therefore, price over quality must not be kept in mind.
4) Factory’s Available Space
Every factory has a size limit that can be filled by a certain amount of machinery, labor, infrastructure and other elements. When you decide to buy a new machine you must first consider eliminating extra or useless machinery, items or material from the factory in order to create space for the new machine to fit in and get installed properly. A factory with a congested place to work in for labor will only welcome injuries and fatalities.
5) Warranty Claims and Period
If you are buying a new machine, you are advised to read the warranty claims properly and get it reviewed by your legal department. As there are many clauses under warranty that are overly misjudged by buyers and hence creates confusion at the time of claim. The warranty period should be checked before buying it. There are vendors that offer warranty plus service of new machinery bi-annually compare the price they quote with other vendors and buy only from Authorize dealers.
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This article is written by Jamshed Tariq who is the Business Analyst as well as industrial writer at number one online B2B marketplace Machinesells.com.