Business equipment is one of the most significant expenses to consider both in new and established organizations, regardless of size. With the pace that technology advances, it can be necessary to replace or upgrade existing equipment to keep operations productive and able to cope changing working practices.
When you made the initial purchase of equipment, you may have considered your options based on the startup funds of the company. If you decided on lease equipment, the upgrades and regular maintenance would have been included in the cost of your contract, but for many companies, this would not have been an option so early on. For most, starting out would have meant buying new equipment to last a good few years before requiring newer models and considering whether to replace this as it gets older or upgrade it is a crucial decision according to business funds.
If you’re considering your options for new and improved equipment, whether it’s production machinery or computer technology, take a look at some things to consider before taking the leap.
How much of the latest advancements will you use?
New technology and equipment usually come with a variety of new features that boast a whole different way of working. But if you already have systems in place in your organization, will you require all what package includes to satisfy your needs? Although you may need the production capacity and improved speed and accuracy, there will be lots of functions you don’t use on a regular basis. Considering whether you need all of these features can save you money in the long run and also reduces the need to overcomplicate the implementation of updated equipment.
It’s very easy to go with the same suppliers time and time again, and if you feel like they are giving you a good deal then this might be suitable but shopping around is strongly recommended in these circumstances. There are many other places where they’ll be able to beat prices and provide extras for the money you’re spending. Comparison costs should also include the potential charge to fix a broken computer or what warranty the equipment comes with to protect you. Be sure to check the small print and get something for the best price that suits your business needs.
How much are the running costs?
The initial outlay of new equipment isn’t just a standalone cost, as you have to consider how much it will be to run it on a daily basis. The beauty of modern technology is that it is being built to better standards in regards to energy efficiency. This element could be hugely beneficial in regards to lower business overheads such as electric and could also help to improve the company’s carbon footprint.
Choosing between leased equipment and outright bought company assets can be tricky but ensuring you have all the details and prices before making any decisions will help to get the best deals for your company budget in the long-term.