In the current climate where everyone is working with increased costs and ever tighter margins, price is paramount in everyone’s minds to increase profitability and stay within budget requirements.
But the question is, what’s the real cost when purchasing new equipment? The initial fiscal outlay is only part of the consideration when looking at a new purchase, particularly when the outcome of this decision is hopefully with us for an extended period of time. Looking at the lifetime of working with the machine is paramount in making an informed decision come acquisition time.
It is expected that a purchaser will want to shop around to achieve a cost objective when purchasing a new machine, but the issue is often that just considering an asset at a lower price to fit a budget requirement in the long run ends up costing the company more. Longevity is the name of the game, knowing that your purchases will - if looked after - be with you long after your ROI is achieved. At Promac International we don’t aim to have our machinery be the cheapest, but we do always aim for it to have the best components and user experience at a fair price; not just at purchase time, but with the ongoing user experience throughout the lifetime of the asset.
As a machinery manufacturer, Promac always aims to develop machines with the long term in mind which is why we insist on the best components such as Leroy Sommer alternators, Perkins, Kubota and Cummins engines and also continue to look for new and innovative ways to make our products not only better, but more cost effective for our clients. Take for example our early adaption of LED technology in our lighting towers. We were able to greatly reduce the running costs with savings in fuel, metal halide globes, longer re-fuelling hours, increased lifespan with our heavy duty LED luminaries and savings with less glass breakage by switching to this newer technology all of which save the customer in most cases in excess of $20,000 per annum when compared to traditional Metal Halide towers. These savings alone make the ROI on these machines around 2 years!
The other costs often not factored in are the ones that seem less important when purchasing, but significantly add to the bottom line of a company over a year. Things such as increased safety achieved by reducing the LED 2400W Minespec tower from 240V AC to 48V DC to help protect operators from potential shocks, eliminating the need for heavy ballast systems that could cause back injuries and downtime for the electricians working on them, longer running times between re-fuelling saving on staff costs, having service kits packaged up for ease of use for the mechanics servicing them as well as faster back up service with a full parts department to ensure our customers can get parts effectively when needed.
Of course there is another unsung cost that is becoming more important in our equation due to increased government legislation and that is the environmental factor. There have been the direct reductions in environmental impact such as using our lights in sensitive areas to negate the negative impact on local marine wildlife, but also the more indirect considerations such as massively reducing the CO2 emissions of our lighting towers, over a year’s running by as much as 30 tonnes per machine per year. These costs are savings that possibly aren’t considered at the time of purchase, but when you factor in the number of machines on the average site, this reduction alone can be a huge saving off the company’s total CO2 emission targets per annum.
These are the real costs that affect a business every day that we can minimise to improve your bottom line. The real cost of any purchase comes not just at the time of acquisition, but in the quality of the equipment and company you are entering into partnership with.
To have a look at the potential savings you can achieve on your site, feel free to have a look at our interactive Lighting Tower Savings Calculator here.