Equipping a business with everything it needs can be a costly task. Make a mistake and buy the wrong product and the problem will just be compounded. It is important to save money wherever possible when buying equipment, not waste it on an incorrect purchase. You also need to understand the financing deals you can choose from, as some of them are very good while others will up the cost a great deal.
Leasing And Renting
Before you sign any sort of rental or lease contract, you need to read the small print about the terms and conditions.
Usually, with a rental agreement, you never own equipment and you just pay the rent for as long as the agreement you have signed stipulates. It is worth shopping around with rentals, as often the dealers will have special offers if you choose to rent from them.
A lease is slightly different in that you pay the agreed amount for the term of the lease and then at the end of it, you can be given the option to purchase the equipment at a reduced price. However, the company leasing to you will also take it back and let you have the latest version with a new lease. You are basically paying for the equipment over the term of the lease, and when you come to renew, the value of the used product is knocked off the new lease.
Consider Used Equipment
Buying used equipment can save hundreds if not thousands of dollars, especially if you are after several pieces. Take a look at online auction sites or some of the best western auction houses, which specialize in industrial equipment to see if they have what you are after in one of their sales. Because they are used does not mean they have reached the end of their life and there is often bargains to be had if you look in the right places. Just consider when a company goes bankrupt, for example, a sale could include equipment from them that is no more than a few months old. Some of it could be perfect for your business and buying used is definitely worth considering.
Look Out For Special Deals
Sign up for newsletters for anyone you might purchase equipment from. Often, these are the first place they will show any special offers they have, as they want to encourage customer loyalty. Keep your eyes open for sales and special discount codes as this can give you a significant saving towards the cost of new equipment.
Do Not Be Afraid To Walk Away
Never be afraid to walk away from a deal. You have to remember that the supplier wants your business, just as you need the sales from your customers. Sometimes, if they see that you are about to walk away from a deal they will make you a better offer just to get the sale. If they won’t, there are not many items you can only buy from one place and you should look elsewhere if a supplier will not give you the deal you are after.
Running a business successfully is all about making profits, and you do not want to give those profits away by overspending on new equipment.