Friday, January 31, 2014

Don't Go Cheap



Compressed Air ain't cheap.

Not only is it one of the biggest users of electricity in a factory, but if you want a quality machine, the initial cost can be extremely high.  If you try to cut costs and go with the least expensive offer, you'll pay for it later.  Not only will it have more problems and fail more frequently, which will cost you money in lost production, but it will cost a lot more to run in electricity. 

Never, never, never go with the lowest priced brand or offer on a compressor. 

I can't emphasize how many time we've seen customers get burned by this.  They're looking for a compressor, so they bring a bunch of compressor companies in, which is good.  It's a great idea to get the viewpoint and perspective of different compressor companies.  However, where they go wrong (very wrong), is that then they say "whoever comes in with the lowest price gets the job."  You are doing a huge disservice to your company if you simply go with whatever company gives you the lowest initial cost.  By doing this you are crippling your company with the threat of extra costs, lost production, and higher electricity bills for years to come. 



The initial cost of a compressor is just a small percentage of what you'll be paying.  Again, the price you pay for the compressor when you first buy it is only a small percentage of the cost of the air compressor - about 12%.    Here is a chart showing what the compressor actually costs:






So when you go with cheapest offer, you're actually not saving any money.  You'll probably end up paying more, because the cheapest manufacturer is the cheapest for a reason.  Ask all of the compressor companies to give you the 10 year cost of owning the compressor, including electricity and maintenance.

Buy your compressor based on:

1.  The real cost of the compressor (not the just initial price you're buying it for).
2.  The features and benefits of compressor.
3.  The trust you have in the company that's selling to you.
             Do they have the sales, service, and parts team to respond to your needs?
             How many service technicians do they have on the road?
             Do they keep the maintenance parts for your compressor in stock?
             How long have they been in business, and can they provide references?

More on #3 - you're not just buying a compressor from this company and that's it.  You are developing a 10-20 year symbiotic relationship with the company that's selling you the compressor.  That's longer than some people stay married.  Would you pick a spouse based on cheapest offer?

Your compressed air system is the life-blood of your production.  Don't go with the cheapest initial cost, because it may not actually be the least expensive.  You're essentially marrying your company to this company and the compressor is the house you're living in - pick the right partner and pick the right compressor.

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