There are lots of effective ways to cut costs when running a business. However, one thing that you don't want to skimp on is equipment. Below are just some of the reasons why acquiring business equipment on the cheap can be a bad idea.
The effect on your customers
Cheap equipment can often be basic and potentially poorer quality. This could have an impact on your ability to satisfy and attract customers.
Equipment that is used by customers needs to be high quality in order to create a good impression on customers. For instance, hospital beds need to be comfortable so that patients have a good experience - a cheap bed is unlikely to provide this comfort and your clinic could end up receiving bad reviews.
Equipment that isn't used by a customer but is still seen by customers can also create an impression. If a coffee bar is using a visibly low-end coffee machine, it may put off avid coffee lovers who know that they aren't going to receive the best brew in the world.
As for equipment used behind-the-scenes, you need to be sure that it is still going to be reliable enough to meet your customers needs. Cheaper equipment is likely to break more easily, which could affect the quality of product or service that you offer. For instance, a cheap die cutter that regularly breaks could inconvenience clients if you have to put business on hold in order to fix the machine, resulting in your client not getting their product on time.
The effect on your employees
Employees are likely to resent working for a company that uses cheap equipment - especially if employees have to use that equipment.
Cheaper equipment tends to be less efficient, which can make work harder for your employees. Your employees may feel undervalued - expecting employees to use low quality equipment can imply that you don't care about your employees wellbeing.
Are you actually saving money?
In the long run, cheap equipment may not save you money. Such equipment is likely to break more easily - which could mean more repairs and more replacements. There could also be money lost during downtime if broken equipment prevents you from offering a certain service.
What if I can only afford cheap equipment?
Not everyone has the funds to buy expensive top-of-the-range equipment and in many cases you wouldn't want to anyway - high-end equipment can be more complex to use and sometimes unnecessary. Instead, you should aim to buy mid-range equipment - such equipment is likely to be good quality without being unnecessarily complicated.
Buying such equipment outright may not be possible, but you could always consider hiring or leasing it. Such an option is popular with company vehicles and office computers.
There's also the option of buying on finance. When pursuing this option, always shop around for interest rates to avoid paying high excess fees in the future.
