Businesses are always looking for ways to save money in the face of rising costs.
As a result of the pandemic and Brexit, the price of goods and services is projected to increase by 2.9% annually over the next 5 years, with some goods and services expected to see higher increases than others. UK inflation topped 5.4 percent in December 2021, its highest level in 30 years raising the price of everything from food to fuel. Business owners must take steps now to reduce costs in the future or risk their capital. One of the ways to do this, is to reduce costs on business equipment.
However, companies still require equipment and other essentials to run. New business will be hit the hardest. Those just starting out will need everything from tech and shipping materials to large scale distributional equipment. It’s a good idea to consider the value vs the total cost of ownership. The initial cost of some equipment may be high but when we divide that by how much use it gets and over the total amount of time it lasts it can save you money in the long run. The same goes for energy-efficient products, you may pay a high cost at first but then save much more on your outgoings.
Of course, initially it will all come at a huge expense especially as there are often unforeseen and therefore unbudgeted costs uncovered in the process. However, there are some strategies you can use to save money.
Here are some ways to save money on business equipment without sacrificing quality:
Buy new models only when necessary
Buying the best business equipment is important for any type of business, large or small. On the other hand, having the most high-end equipment is not always what your business needs. The newest models tend to be more expensive than their predecessors. For example, buying a new smartphone with all the latest features will cost more than one that’s a year old. However, you can still have a dependable device and save money if you only buy what’s necessary. Take this into account when you look for new tech options for your business. Most of the time the changes from one model to the next are minimal and not worth paying the extra money for. Read the specs and always pick what your company needs and nothing more.
Buy used equipment
Used equipment is a great way to save on costs and is a sustainable option. Most equipment has a longer lifespan than its need for. Think about your must-haves and only buy what your business requires. Do some research and you’ll be sure to find what you need, look for auctions, overstock sales and reputable online companies for quality products. Older products are not all the same so you may need to inspect them in person before committing to purchase. Another great option is to look for companies that refurbish equipment. This is usually of nearly new quality but at a fraction of the cost. Buying second-hand will also allow you to buy a more prestigious and trustworthy brand that you may not have been able to afford new. Look online for trustworthy companies such as Multy Lift, which offers a wide range of used forklifts in all the top brands and refurbished to industry standards.
Look for discounts and sales
Equipment dealers are just like any other retailer so be sure to look for any sales or promotions they may be running throughout the year. January sales and black Friday are popular when looking for cut-price deals. Look for memberships or discounts online when you sign up to their mailing lists. They frequently offer a percentage off your first purchase which can save you huge amounts of very expensive equipment. Some may offer a loyalty scheme where you will get a discount after so many purchases. If you plan on buying more than one piece from them, always ask if they can offer you a multi-buy discount.
How can you get the best deal?
Shop around and where possible cut out the middleman you will usually be able to purchase a product directly from the manufacturer at a lower price. However, be aware of low-quality products that do not match the description. Always do your research so you know the equipment’s market value and never accept their first price. Always try negotiating as most businesses are quite happy to haggle. Go in with a lower offer first as they will no doubt counteroffer and that way you haven’t blown your negotiating power at the first hurdle. Being bold and brave is the name of the game, and you are more than likely to get a great price.
Maintain your equipment
Ensure you maintain your equipment to a high standard. Be sure to carry out industry-standard maintenance and follow the necessary certifications. Equipment that breaks down all the time will add up to a much higher cost than regular maintenance. Not only that it will improve the lifespan of the product. Often overlooked but an essential part of maintenance is ensuring equipment is cleaned appropriately. Have a look online for more easy tips for keeping your equipment in top condition. This will help you to keep your gear working effectively for longer and reduce ongoing maintenance costs.