Save Money on Business Equipment
There are plenty of equipment expenses when it comes to your business, but if you’re in an industry that requires advanced equipment or heavy machinery, then you’ll know that we’re not just talking about the cost of a laptop here: we’re talking big bucks. Though the figures may, at first glance, be eye-watering, it’s important to remember that there are always ways to reduce the costs involved. Below, we take a look at nine ways you can save money on your business equipment. Thank us later!
1. Is it Necessary?
First thing’s first: before you begin figuring out how you’re going to pay for all the equipment you need, ask yourself if it’s really necessary. It’s easy to make a list of equipment that covers every eventuality, but the truth is that the instances when you’ll need some of the equipment you have on your list will be few and far between. You may also not even need the equipment for the jobs that you know you’ll be doing over and over again, if it’s a job that you can outsource. So when it comes to buying your equipment, make sure you’re only buying the tools that you’re sure you really need.
2. Renting Versus Buying
Even for the equipment that you positively need to have onsite at all times, you’ll have options. Because the cost of buying new machines can be so high, it often makes more sense to lease the items. Under this arrangement, you’ll lease the equipment for a set number of years, and then return the item once the lease is up. The advantages of this are that you won’t need to spend full price, the payments will be spread out, and if there’s ever a problem with the machine, fixing it will be the owner’s responsibility. It’s a good option if you don’t know how long you’ll need it, but you may want to consider something else if you know you’ll need the item for years.
3. A Good Deal
Fortunately, you’re not locked into just buying an expensive, brand-new piece of equipment, or sinking money into leasing an item that you’ll never own. There’s another option, which is to buy second-hand machines. These can work just as well as a brand-new version, but can be much cheaper, especially if you get them through an auction site like Equify. So long as the machine has been well-maintained and is fully functioning, it’ll feel the same as buying new — but you’ll have much more of your working capital to play with.
4. Invest in Quality
Of course, it’s important not to push it when you’re buying second-hand machines. Buying from a reputable dealer or auction house is one thing; buying a piece of junk from Craigslist is another. If you’re going to buy a piece of machinery, make sure you’re investing in quality. You’ll only end up spending money on expensive repairs — and eventually replacing the item — if you select an option that wasn’t made to last. It’s about finding a model that’s not overpriced and too shiny for your needs, but also not too cheap and liable to breaking down.
5. Efficient Machines
It’s not just how fast or powerful the machine is, but how efficient it is when it comes to its energy usage. You could find a bargain option that appears to well amazingly well for the task it was bought to do, but which is still not the best option, because of the amount of energy that it takes to run. The total cost of the machine isn’t just what you’ll pay up front to use it, but how much it’s going to cost you in energy.
6. Take Care
It’s best to treat your business machinery like you do (or should) your car. There’s a big difference between the functionality and longevity of a car that has been well-maintained, and one that is just used and used and used. When it comes to your equipment, make sure you’re taking the time to have it properly serviced by an expert. They’ll give it the TLC it needs to be at its best. They’ll also be able to fix any small issues before they become big problems, which will save you the cost of expensive repairs.
7. Renting Out
Why not put your business equipment to work? If you’ve got a specific piece of kit that not every business owns, then you can look at renting it out to other companies on an “as needed” basis. Even if you don’t make a profit from this venture, at the very least it’ll help cover the costs of the maintenance of the machine. If you can see that you’re not going to use it for a period of time, you can lease it out to another company for that period. This will also open up some space in your facility, which you can then fill with goods that will make your business money.
8. Reduce Tax Bill
Specialised and heavy equipment can be expensive, but it can help to save you money in another financial area — your taxes. You may be able to deduct the cost of the machinery when it comes to filing your taxes. If you’ve bought a lot of expensive equipment that year, then that could add up to big savings.
9. Resell Old Goods
Finally, let’s think about the easiest to save money on your equipment: selling your old goods. This can be an excellent way to raise some capital (on the items you no longer need, of course), and if you’ve properly looked after the maintenance of the item, then you should be able to recoup a significant amount of the initial cost you paid (specialised machinery has a lower rate of depreciation than, say, a car).
There’s no getting around the fact that you’ll need to part with some serious cash in order to get well-working, high-quality machines for your worksite. But as we’ve shown above, there are ways to limit these costs, which can help you save a lot of money.