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Hire An Equipment Procurement Expert
There is a right and wrong way to buy equipment. Big companies have their own dedicated procurement managers on staff. Do you have the training, skill and knowledge to get the right product at the right price?
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Make the right decision
There are so many different options for equipment such as photocopiers, machines, IT systems and the like. Hire an expert buyer with years of commercial purchasing experience to make the right decisions and take the headache out of the process.
Save time, save money and get the right machine for the job. Guaranteed. Whether you are in the market to replace outdated equipment or looking to purchase the latest and greatest in new technology, it’s important to choose the right equipment for the right environment.
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We help you do your homework
We will help you ask the right questions to help determine exactly which piece of equipment will best meets your needs. It’s important to choose wisely when making such a significant purchase; do not rush the process, time is your friend when it comes to getting it right!
That's why you need to take the time to talk to us first.
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The bottom line
When purchasing new or used equipment, obviously price is always a very major factor. Not only should the intital purchase price be taken into consideration though, but also how much will it cost to properly maintain the equipment throughout its lifecycle; how much are replacement parts or consumables; and how does the purchase price compare to other similar makes and models on the market? Those are just some of the questions we will help you get answers for. And then of course we help you get it for the best possible price!
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Buying for your specific needs
Another important factor when considering the purchase of equipment is usage. How often and in what environment will the equipment be used? The circumstances in which the equipment will be utilized will help determine the list of product features necessary to get the job done.
How much will parts cost when things go wrong or the equipment starts getting older? What is the cost of OEM certified parts and new consumables versus refurbished parts and consumables? Are the new or refurbished parts and consumables readily available at prices that fall within your budget? All these pros and cons need to be carefully considered before you can make the right fully informed decision.
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Lease VS Buy
One of the fundamental decisions you first need to make is whether you should lease or buy, and this is an area we can very much help you with. Each situation is unique and the decision to buy or lease business equipment must be made on a case-by-case basis.
We help people to negotiate on lease arrangements as well as for purchases - everything in this world in negotiable! So either way we are in your corner ok!
Regardless of your decision to buy or lease, and regardless of the overall cost to you, it is crucially important to keep quality front and centre in your mind. Your aim should always be to get equipment that does exactly the job you need in the most efficient/effective manner , and that lasts as long as possible. Remember, saving a few dollars now might come back to really hurt you later!
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Why buy?
The most obvious advantage of buying business equipment is that, after you purchase the equipment, you gain full ownership of it. This is especially true when the item has a long, useful life and is not likely to become technologically outdated. Tax incentives (for businesses) are often another good reason to consider purchasing business equipment outright.
However, purchasing your equipment may not be an option for you if the initial cash outlay is too high. Even if you plan on borrowing the money and making monthly payments, most banks require a significant deposit of around say 20%. You also run the risk that your equipment may become technologically obsolete, and you may be forced to reinvest in new equipment long before you had planned to, with your original purchase having very little residual resale value.
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Options When Buying
If you do make the decision to buy outright, once you have weighed everything up, then you still of course have options available to you!
Rather than buying new, you could consider buying used, if you can find one in good condition, as often the saving may be more than 50% of the new cost. Refurbished equipment also often makes good sense. In the case of consumer electronics for instance, what you often get is something that has been brought back to top shape by a third-party retailer, which comes with a full warranty making it just as reliable as new equipment.
Some equipment, particularly office equipment, can be purchased for multiple functions (ie say scanner-printer-copiers). Buying these as a three-in-one will always costs less than buying the three separately.
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Buyologists have been kindly donated a limited number of copies of
Negotiation Essentials
By Peter Papermon
- Apply your negotiation skills in a work context
- Negotiate effectively with expert salespeople
- Know when to use hard or soft negotiation stances
- Avoid over-negotiating or negotiating too often
- Use the right words to achieve precise results
- Accurately read and project body language
- Build relationship through effective eye contact
- Prevent heated discussions from getting out of control
- Use verbal agreements in the right contexts
- Get better outcomes in a range of practical scenarios
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Advantages of leasing
Leasing equipment can be a better option for people who have limited funds or people who need equipment that must be upgraded every few years (whereas purchasing is often better for equipment that has a long, usable life) The primary advantage of leasing equipment is that it allows you to acquire it with minimal initial outlay. Because equipment leases often don’t even require any down payment, you can obtain the goods you need without significantly affecting your cash flow.
Another financial benefit of leasing equipment (for a business) is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. In addition, leases are usually easier to obtain and have more flexible terms than loans for buying equipment.
Leasing also allows you to address the potential problem of obsolescence. If you are needing equipment that may become technologically outdated in a short period of time (such as computers), a lease passes this risk back onto the lessor and you are free to lease new, more up to date equipment after your lease expires.
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.. or maybe not?
Leasing business equipment has two main disadvantages though - overall lifetime cost and lack of ownership. With regard to lifetime cost, leasing an item is almost always more expensive than purchasing it. In addition to the higher cost, you will have built up no actual ownership/equity in the computer, ie once your lease expires it’s not yours any more!.
Another downside to leasing is the risk that you are obligated to keep making payments for the entire lease period, even if you stop using the equipment for any reason.
Rather than leasing, an alternative arrangement known as Corporate Hire Purchase (CHP) is often a better option, particularly for businesses.
CHP is especially suited to businesses that need to finance income producing equipment or vehicles and want to own the asset at the end of agreement, while preserving their working capital. Under this structure, you buy the equipment and hire it back over an agreed period, but at the end of the term when all repayments have been made you are the full owner (as opposed to a lease when the item is still not owned by you).
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Training & Tech Support
Will users require training on how to properly operate the equipment to its full potential and is that training provided at no cost? Will the end-users have unlimited access to online usage, maintenance, and vendor performance reports and will those reports be provided at no cost? Is technical support bundled in when you purchase?
Service Contract
How long does the manufacturer warranty last? After that warranty period expires, it is extremely important to consider what service contract terms & conditions are available and at what cost. Is the service contract long or short-term; is there an auto-renewal clause; what are the cancellation fees; is there a guaranteed response time; and are parts and travel included in the contract cost? Before entering into any contract with the Original Equipment Manufacturer (OEM) or alternatively a Third-Party Vendor, it is vital to understand exactly what you are signing.
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We help you with the fine print
You can’t afford to assume the contract is all ok, you do need to read the fine print! Thats why you need an expert like us before you sign a contract, regardless of what the salesperson tells you – because at the end of the day they are not on your side! We know all the tricks of the trade to negotiate favorable contract terms & conditions.. and we know all the clauses they’ll try and slip in to the contract without you even noticing!
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Got more questions?
We hope this tells you a bit more about us... but you might still have loads more questions. If so, we would love to hear from you, to talk in more detail about how we can best be of service to you...
In the meantime we invite you to browse our
Frequently Asked Questions page, which answers lots of the common questions our clients ask us.
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Contact Buyologists