Modern machinery and software can help companies to cut costs in many cases, but it can also have the opposite effect for those that choose the wrong type of tech or pay for extras they don’t need. Here are a few ways to ensure that you’re not overspending on technology for your business.
Focus on tech that meets your needs
A lot of companies get sucked into paying extra for technology that they don’t actually need. If you only ever need to print off documents once in a blue moon, there’s no need to buy a commercial heavy-duty printer – a regular everyday printer could be all you need. The same goes for business software – so many small startups pay for advanced accounting software when there are free accounting programmes out there that do everything a small company needs.
Whenever buying new tech, consider the functions that it offers and whether you’re likely to use most of them. There will always usually be a cheaper substitute that offers less functions – such technology could be better suited to your business.
Know when to hire instead of buying
A lot of companies can also end up spending a lot of money buying machinery when hiring it could have been a more sensible option. If you’re unlikely to use a machine regularly, you’re often better off hiring it as you’ll pay a tiny fraction of the cost of buying it. You’ll also save money on maintenance and other running costs.
There are sites out there such as https://www.freogroup.com.au/ that specialise in heavy equipment hire. It’s also possible to hire printers and laboratory machinery from many universities. There may even be another company in your area renting out machinery to use for cheap.
Hiring shouldn’t be confused with leasing, which is on a long-term basis. When leasing, you usually rent something out on a monthly basis and can pay more in the long run than were you to buy that machine outright. Leasing can sometimes be necessary when buying expensive industrial machinery that you’d never be able to save up for, but should generally be avoided when it comes to cheaper tech that you can easily raise funds for.
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Consider energy efficiency
Energy efficiency is an important factor to consider when buying new machinery. Some machines use up a lot of power and will result in you racking up high energy bills. This tends to be more of a case with older machines – many newer machines are a lot more energy efficient, which could be something to consider if you’re buying old equipment second-hand.
There are sites such as https://www.sust-it.net/energy-saving/desktop-computers that can help you to compare machines such as desktop computers to find the most energy-efficient model. This could be useful if you’re planning on buying lots of machinery that is going to be in constant use.
It’s worth noting that many companies waste money on machinery by simply not turning it off whilst not in use. Whilst certain machines are more energy efficient when left on standby, others such as desktop computer are better off being shut down and unplugged rather than left on overnight when not in use. Some machines also have energy saving settings which could be worth looking into.
Take preventative maintenance
Some technology can also end up costing a lot of money in repairs. There are a number of ways to reduce this cost – the first is to always read reviews before you buy a machine or programme so that you have a good idea of the general reliability. Certain models of machinery may be more prone to faults and by reading reviews online left by other users and professionals you can avoid these models.
When it comes to used machinery, doing your research is especially important. You should always make sure that you have a clear idea of the condition of the machinery that you’re buying as well as looking into any available service history so that you can check for recurring faults. Buying from a reputable seller online could also prevent you buying a used machine that’s got previous faults.
Once you’ve bought your machine, the next important step is to keep it serviced. This will help you to spot faults early – these minor faults are likely to be less costly to repair. Some modern machines have their own diagnostic features telling you when there is a fault, whilst other may need to be manually serviced. For those that need to be manually serviced, it’s worth keeping a service logbook and ensuring that any maintenance is done early.
Not all machinery can be easily repaired – advanced machinery such as lab equipment may be expensive to repair due to the scarcity of technicians that are able to work on it. When getting repairs, try to follow the 50% rule – only ever repair something if the costs comes to less than 50% of the machines’ value, otherwise you’re better off replacing the machine.
Avoid unnecessary insurance
Some machinery sellers may try to sell you extended warranties or exclusive insurance packages. Think carefully about paying extra for this insurance as it could just be extra money down the drain. You may already have taken out a business property insurance scheme that covers you for damage or theft to contents – such a scheme could be more appropriate than taking out an individual insurance scheme for that single machine. You can compare property and contents insurance at sites like https://www.aviva.co.uk/business/buildings-and-contents-insurance.html.
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