What You Need to Know Before a Major Equipment Purchase

Your business is growing, and you may be struggling to keep up with demand. You might think the time is right to add to your fleet of equipment. This is an exciting time in the street sweeping and paving industry.
However, before you write that check or take on a loan, there are some things you should consider before making a major equipment purchase for your business.

Understand Your Customer

Before you started or purchased your business, no doubt you knew at least a little about your ideal customer. You probably understand your customer better now that you have been in business for a while.

If you constantly find yourself spread too thin with your current equipment, struggling to meet the demands of your customers, it may very well be time to add to your fleet. If you often have equipment sitting idle, you may want to rethink an additional investment of money on more equipment.

Evaluate Your Ability to Increase Work Load

When you add equipment to your fleet, you have to ensure that you have the right employees available at the right times to maximize profit on your investment.

Have employees that need work? Adding to your fleet is probably a good idea. Only have one or two employees that can operate the equipment you currently have on hand? It might be best to think about the cost-benefit of adding employees or providing more training to the employees currently on the payroll.

Understand the Equipment

Buying heavy machineries like a street sweeper or paving equipment is not like buying a new or used car. You’ll want to make sure you have answers to the following questions:

Is the Equipment Easily Serviced?

Whether you have an in-house service center or you outsource your equipment service to another vendor, you’ll want to make sure that any new equipment you purchase is easily serviced. You don’t want to be hampered by costly maintenance schedules or breakdowns that prohibit you from completing jobs promptly.

Do Your Employees Understand How To Use the New Equipment?

It is vital to have qualified employees to run your equipment without a steep learning curve. Maybe you already have plenty of employees that know how to use the equipment you want to add to your fleet. If not, think about how long it will take to get employees up to speed.

Do the Features of the Equipment Align With Your Business Goals?

It is easy to get swept up in the shiny new equipment donning the showroom floor. However, if the equipment does not align with your business goals or won’t be beneficial to your bottom line, it may be time to reconsider the purchase.

How Old Is the Equipment?

If you are purchasing new equipment, this will not be a concern. However, if you are purchasing used equipment, look at the maintenance schedules provided by the seller. Ask to see logs of performance. The last thing you want is to purchase equipment that will need costly repairs as soon as you get it out on the job.

Know the Price

When you get ready to buy equipment, you’ll want to make sure it fits within your budget. You also need to think about how the addition of equipment will affect your overall bottom line. Does the addition increase or decrease the profit you will earn on every job? Adding equipment only makes sense if you have the workload to keep that equipment running.

Evaluate New Purchases Using Our Suggestions

We understand that your business has a lot of moving parts and buying new equipment is just one of the things you have to think about. Hopefully, these suggestions will help you determine if the time is right to add equipment to your business. Stay informed on industry trends in the cleaning industry when you subscribe to North American Sweeper Magazine. From software systems to best practices for customer service, you’ll find everything you need to run an efficient, thriving business.