For any company that is into manufacturing, construction or mining business the most important this is to maintain the balance between Revenue and Profit. Such companies always look forward to extend their production capacity and grow more business and for this purpose you are solely relying on the equipment that is being used in the factory to run the supply chain. Therefore the major expense for such companies is always and will be the replacement of machine.
Purchasing new machine or factory equipment is not an option that is available to all the business owners because of the high cost these machines incurred and all the hassle it takes to buy the brand new machinery. People that are running companies successfully understands the importance and benefits of buying used machinery as its cost effective and save you time as well.
Let us look at some benefits a company can get by buying used machinery
- Cost Effective
You can easily save a good 30-60% of cost on buying used machinery. Comparison of new machinery with used is exemplary and the used machine can cost you as low as 50% of the new machinery price. It saves you substantial amount of bucks as well as time. However, it’s important to check and re-assure over the quality, condition and model of any machinery.
- Say Good bye to Loans!
It’s a common observation that companies reach out to banks for mortgage or loan on buying new machinery and then pays the debt with interest on the actual price of the machine whereas the machine starts depreciating right from the 1st minute of its purchase so it’s a loss on both ends. Hence opting for used machinery is always a feasible option since its under your budget and you can avoid taking any long run loans.
- Proven Performance Output
Used machineries can be tested and verified by the actual output it product and time lapse performance. One can always assess the actual result expected from any used machinery. However, in case of new machinery buyer has to believe on what the company claims and it’s yet to be tested.
- Saves your time
When you chose to buy used machinery you are saving your time. In case of new machinery one has to first book the machinery then process the payment and waits for the supplier to assemble the machine and ship it. This all can take an unusual time;
- Less maintenance cost
Used machineries if bought under running condition will not cost you that much on maintenance as equipment are already under running flow and stability control. Where as in case of new machinery there is a chance of high maintenance due to updated model, different tools, and parts and up gradations that requires tuning every other week or month.
All in all it’s a smart option to go with as used machineries saves you labor cost, machine cost, time cost and maintenance cost whereas you are increasing the production by adding one more equipment.