Equipment that breaks needs to be fixed, but should you repair it or replace it? Here are some questions to ask yourself that could help you to make the right decision when dealing with broken business equipment.
Which is cheaper?
Often it’s cheaper to repair than it is to replace, but there are times when replacing could be cheaper in the long run. If a machine has been cursed with problems up until now and it seems likely that there may be more issues in the future, consider whether the machine is really worth all these repair costs.
In most cases, its sensible to stick by the ‘fifty per cent rule’. This states that if repairs cost more than fity per cent of an item’s total value, you’re better of replacing than repairing.
Often you can save money on equipment by regularly servicing it yourself and spotting faults early. Wait until the damage gets worse and its likely that repairs will be much worse too.
Smart analytics technology is now being used to detect faults before they happen. You often have to buy technology with smart sensors already in-built, however as this site https://www.iot-inc.com/retrofitting-connected-sensors-iot-products-podcast/ shows some companies are now beginning to offer smart sensor retrofitting services which could allow you to keep your old tech whilst using modern smart technology.
Meanwhile when it comes to emergency damage, consider insuring your equipment. This could help to cover all costs so that repairs/replacements aren’t such a heavy blow to your business. Some commercial property insurance schemes include contents, however you may have to take out a separate scheme such as https://www.allianzebroker.co.uk/commercial/engineering-solutions/insurance/machinery-breakdown.html to get full cover on expensive equipment.
Which will cause the least disruption?
Repairing or replacing equipment could cause downtime in which your business can not function efficiently. This could cost you money, but it could also negatively affect your reputation. It may depend on how vital the apparatus is to your business – if you run a coffee shop and your coffee machine breaks, you’ll want to find the quickest option as not being able to make coffee won’t go down well amongst your customers!
Some companies will search far and wide to find niche repair services such as https://www.houstonrebuiltaxles.com/bent-axle-and-spindle-end-repair.htm rather than replacing, simply because it could cause less disruption. Replacing may involve having to search for new equipment, deliver it, license it and perhaps even retrain staff how to use it if it is different to previous equipment, all of which can cause a lot of downtime.
You can limit disruption time by keeping spare equipment to use in its place such as a spare computer or spare business vehicle for your fleet. It’s worth also forming relationships with fellow companies who you can borrow equipment from in the event of an emergency.
Could you benefit from an upgraded replacement?
A replacement can sometimes have benefits over a repair. A new upgraded machine could be better for your company’s reputation than an old machine – your old machinery could be causing clients to think that your company is old fashioned whilst a new machine could show innovation. New equipment could also get the job done faster or save you money in running costs – for example a modern computer could be more energy-efficient and faster than your older one. It could also be easier and smoother to use, making your employees happy. All in all, in could be worth shelling out on an upgrade if your machinery is old.