I. Thou shalt not max out your line of credit on a new piece of equipment. Research lease/purchase options. And the cheapest deal isn’t always the best. The decision to buy or lease equipment is usually an analysis of your company’s cost of capital, cash flow and time value of money. Seek competitive bids to see where you can find better deals and don’t be afraid to ask for extras or upgrades on the equipment that can be added at no charge. II. Thou shalt weigh the pros and cons between new and used equipment. You have a fever, and it’s being fueled by that awesome new product you saw at the trade show. But before picking up the phone and calling your friendly sales representative, consider whether the benefits of new equipment outweigh the cost difference for the used model. But keep in mind that used equipment might break down more often. And equipment failures cost money not only in repair bills, but also in down worker time. Take your time and physically write down a list of pros and cons of new vs. used equipment before making your decision. The decision to purchase new or used equipment is no easy one. Make sure you consider extra down time that may be associated with used machinery. III. Thou shalt not buy a new plug transplanter from a dimly lit warehouse at the end of a pier. To keep your own equipment from ending up in the crime syndicate, weld your phone number or an owner-applied number on all your machinery. IV. Thou shalt read, and perhaps re-read, the operation manual. “They won’t make it into a movie, so it’s a good idea to be familiar with the novel,” Behe said. Mark sections you’ll need often and keep manuals handy. No one is going to refer to the manual if it’s hidden under boxes of old tax returns. If something in the manual doesn’t make sense, ask the manufacturer or dealer. V. Thou shalt understand the meaning of a product warranty. However, most warranties are null and void once a piece of machinery has been altered. Talk to the manufacturers. Tell them what you need. Can they build something to your specifications? “With the exception of some tractors, I don’t think we’ve ever bought a piece of new equipment that we didn’t have to tear apart and rework it so it works effectively,” said Denny Blew, president of Centerton Nursery in Bridgeton, N.J. Also never, ever, tamper with a piece of equipment’s safety guards or devices. Never sacrifice employee safety. VI. Thou shalt conduct training sessions on the equipment operation. The manufacturer or dealer may offer a service to train equipment operators. Ask if your dealers offer an orientation or mentoring period after a purchase, and if refresher courses are available. VII. Thou shalt begin, and continue, a maintenance schedule for each piece of equipment purchased. If you don’t properly maintain the equipment, you’ll likely void any warranty (see Commandment V). And keep good maintenance records. Ask peers for advice before purchasing new equipment. Photo courtesy of FlowVisionVIII. Thou shalt ask peers for advice before purchasing new equipment. “It works great as long as you keep it out of the rain.” “It’s good, but I wish I would have bought the upgrade that works with 25 more types of plug trays.” Check with local greenhouse or nursery grower associations to see if they have any equipment demonstration days scheduled. Also check to see if trade shows offer automation demonstrations as well. Check Internet sites for demo videos and for product testimonials. IX. Thou shalt ask employees for a wish list and consider their needs before purchasing automation equipment. “My advice is, no matter what you buy, involve everyone that is going to use it in the decision-making process,” said Amil Kleinert, president of T-Mate-O in Charlestown, Ind. “I spent most of my years in farming buying machinery and hoping I made the right decision. Most of the time it works out great, but then sometimes it’s like one time: My wife hated the new $1,500 mattress we had just gotten a year earlier, so I gave it away and bought a new one. This one is even worse, so we are going to look for another, but this time we both need to be involved.” X. Thou shalt not have equipment envy and purchase the latest-and-greatest product to upstage your neighbor. Gut feelings are no basis for capital expenditures. Think things through and do your homework before signing on the dotted line. For more: Bridget Behe, Michigan State University, behe@msu.edu. Denny Blew, Centerton Nursery, (800) 533-1132. Amil Kleinert, T-Mate-O, www.treesupports.com. |
Explore the March 2011 Issue
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