Purchasing decisions become tougher and tougher considering the rapid changes in technology and how it’s being adapted and applied. This puts business owners in a fix when it comes to buying equipment and machinery. More so, in case of transformers as there is always a cost and efficiency conflict when it comes to deciding between purchasing a pre-owned or a brand-new transformer.
Factors to Consider
When evaluating your choices with respect to buying a brand-new machine as compared to buying a pre-owned one, you need to carefully assess your process needs, the performance requirements, the duration of intended use. Sometimes, an immediate purchase may simply be required to accommodate unforeseen rises in demand as opposed to serving a long-term requirement.
Purchasing a Used Transformer over a New Transformer
Think about it – Given the chance, any business owner’s first impulse will be to buy a brand-new transformer thinking it will have the seller’s guarantee, it’s never been used before so it’s bound to perform well. However, all this comes at high upfront costs during the acquisition process as well as a variety of other hidden charges. Here are 5 additional benefits of purchasing a used transformer over a new one:
1. Reduce Acquisition Costs
Buying a new transformer not only comes with the base costs, but also involves a number of miscellaneous costs, which add significantly to the existing cost of a brand-new transformer when put together. These costs include transportation costs, costs of operational licenses, additional equipment required during the acquisition process as well as other taxes and fees. In fact, in some cases the cost of buying a new transformer could equate to that of two used transformers.
2. Get More Value for Money
Not all transformers are made according to the same quality standards as the best in line. And the chances are that you will have a brand preference to ensure efficient performance. However, the cost of purchasing equipment from more established manufacturing units may come with a premium due to the brand value associated with it. In such situations, it is better to purchase a used transformer from an established company as opposed to going for some of the cheaper varieties due to cost constraints.
3. Wider Range of Choices
The global market for used equipment is only expanding with time. In fact, these days there are special online marketplaces that are providing interested buyers and sellers with an undisrupted platform where they can engage in the buying and selling of used machinery. These websites are complete with all the information about the product, previous usage history while giving you multiple options to choose from. Not just this, many sellers also provide unused equipment at the price of used items which again will be highly beneficial!
4. Enhance Flexibility
By simply buying a used transformer, you will be able to minimize the initial investment, making it simpler to finance. This way you can pay for the transformer without burning a hole in your pocket. And even if you will need to take a loan, considering the lower acquisition costs, you can also consider taking up a short-term goal to finance your purchase, which you can pay back as soon as you hit your breakeven point with respect to the purchase. This automatically also protects your cash flow and helps keep it stable!
5. Reduce Your Carbon Footprint
Last but not least, buying used equipment is always a greener option! By choosing to buy a used transformer over a brand new one, you automatically help reduce the overall levels of industrial waste. This not only helps boost your CSR activities in terms of recycling and upcycling but also helps you reduce your company’s carbon footprint!
Used machines are not considered fuel efficient, yet they are still one of the unique ways of reducing the overall carbon footprint. Industrial equipment manufacturing plants consume lots of energy in the form of electricity, raw materials and human labor. Hence, by reusing the used equipment you can save on these areas and become an eco-friendly business.
Of course, ultimately the final buying decision lies in your hands, but it is always best to use a holistic approach when making such a buying decision. This will not only help you make the best of your investment but also allow you to maximize the output from such investments. So, take your time, evaluate your options carefully and make your decision wisely!