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S N I A G R A B E H T BEWARE OF ways best Why cheaper is not al
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ith the South African economy struggling to grow and many companies tightening their budgets, it is very easy to fall into the trap of choosing price over quality when making purchase decisions.
On the surface, cheaper equipment may offer most of the features and benefits that the more expensive model offers, without the steep price tag. Sometimes the transaction is even termed a great bargain, whereby the buyer believes he got more value than what he paid for. But is it a bargain? Or are we sometimes unknowingly deferring the full payment, costing the business more in the long It is very easy to fall into the trap of choosing price over quality when making purchase decisions. term? When it comes to practical equipment, have you ever wondered In some instances, the end-user does not • Is this particular model accredited why one option is so much cheaper and well-respected by the industry? provide their input into the purchasing than another? Does the use of the equipment or the of testing equipment. In such cases, your results from it have legal or life-saving This doesn’t suggest that you should not buyer may choose equipment on the implications? basis of cost and because of their lack of consider price when purchasing business experience on the qualities to look for, equipment. Of course it’s hard to justify • Can the business afford to operate they may end up choosing the cheapest investing money with an eye on the long for more than one day without the model or one that that looks impressive term when there are other areas of the equipment in the event of equipment but lacks substance. business that also need a cash injection. failure? This also makes it easier to buy what It is therefore prudent to consider is cheap now and not worry about the • Would equipment failure directly hurt business equipment purchases as an long-term impact. However, it is equally the business’s operations or even its investment and to empower the people reputation among employees, clients important that you ensure that the who make purchasing decisions so that and where relevant, affected legal and bargain of today does not turn out to be they are better able to consider the regulatory bodies? the money pit of tomorrow. As Benjamin overall impact of choices. Here are some Franklin once brilliantly put it, “The of the issues to take into consideration The biggest benefit of purchasing quality bitterness of poor quality is remembered when buying business equipment: equipment is that, once the investment is long after the sweetness of a low price.” made, you can focus on other aspects of • Does the model we would like to the business with the assurance that your choose offer all the features needed Making empowered equipment will do what it’s supposed to be able to efficiently execute the purchasing decisions to, when it’s supposed to. You also have intended tasks to the best quality we peace of mind knowing that your budget can afford? For many companies, the most popular allocation is unlikely to be derailed purchasing method is for those using by unexpected repair costs. Quality • What is the expected life-span the equipment to provide the buyer equipment is also good for employee of the equipment? This includes with clear specifications of what they morale, as they don’t have to waste time manufacturer guarantees, warranties require. The buyer is then tasked with with faulty equipment or waiting for in place and anecdotal history from finding the cheapest supplier that someone to repair the instrument, which previous users. meets those requirements. ultimately affects their work. • What is the projected cost of Unfortunately, this is not always the ownership of the equipment over its best approach as inferior products may lifetime, when including estimates for feature the same specifications. However, repairs and estimated maintenance they are manufactured to a lower costs? Based on this, do you still standard of quality and won’t last as long believe that your cheapest buy is the as a better quality product. most cost-effective option? Rhys Evans, Managing Director of ALCO Safe. 24
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