Beware of the bargains

With the South African economy struggling to grow and many companies tightening their budgets, it is very easy for businesses 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 longer-term?

According to Rhys Evans, managing director of Alco Safe, suppliers of superior drug and alcohol testing equipment and accessories, here are some of the issues to take into consideration when buying business equipment:

•  Does the model we would like to choose offer all the features needed to be able to efficiently execute the intended tasks to the best quality we can afford?

•  What is the expected life-span of the equipment? This includes manufacturer guarantees, warranties in place and anecdotal history from previous users

•  What is the projected cost of ownership of the equipment over its lifetime, when including estimates for repairs and estimated maintenance costs? Based on this, do you still believe that your cheapest buy is the most cost-effective option?

•  Is this particular model accredited and well-respected by the industry? Does the use of the equipment or the results from it have legal or life-saving implications?

•  Can the business afford to operate for more than one day without the equipment in the event of equipment failure?

•  Would equipment failure directly hurt the business operations or even its reputation among employees, clients and where relevant, affected legal and regulatory bodies?

Evans added, “The biggest benefit of purchasing quality equipment is that, once the investment is made, you can focus on other aspects of the business with the assurance that your equipment will do what it’s supposed to, when it’s supposed to.

”You also have peace of mind knowing that your budget allocation is unlikely to be derailed by unexpected repair costs. Quality equipment is also good for employee morale, as they don’t have to waste time with faulty equipment or waiting for someone to repair the instrument, which ultimately impacts their project schedules.”