nb: collaborative post
If you’re reading this, it means you use some type of machinery in your business. This can relate to manufacturing equipment, vehicles, and anything else within the same category. It’s an essential part of what makes your company work, but there’s a huge issue – it costs a lot of money!
Machinery costs money to acquire, but it also costs a fortune to run. All the while, your business is slowly being depleted of precious funds. In some cases, the costs of using machinery are far too much, leading to a reduction in profits.
Let’s be real, nobody wants this to happen, yet how can you stop it? You can’t get rid of the machinery as you won’t be able to do all of your work! This is where your leadership skills are put to the test as you figure out how to cut machinery costs without damaging your company. It’s not impossible to do this; you just have to think outside the box:
Rent don’t buy
Renting machinery and equipment is usually more cost-effective than buying them. You pay a small amount every month, making it easier to manage your cash flow. In comparison, buying machinery can deplete your resources and leave you in a bad financial place. Also, renting lets you pay for machinery when you need it. So, if you only use a specific thing once every few months, you only have to pay for it when necessary. This saves you spending a fortune on something that collects dust for most of the year.
Lastly, renting gives you the chance to move between suppliers and find the best deals. You may find that another company provides the machinery you use at a much lower rental cost. As such, you can make the switch and save even more money.
Save money on fuel
Most machinery needs fuel for it to operate – particularly things like forklifts and other vehicles. Did you know you could save a lot of money by choosing red diesel over regular diesel? Both fuel types work, but the red version isn’t used for road vehicles, meaning it bypasses the higher fuel tax rates. Essentially, it’s a cheaper option!
There are lots of red diesel suppliers out there that provide this fuel in bulk. Making a simple switch from white to red can save your business a fortune.
Employ trained professionals
Lots of money can be spent on training your employees to use different machinery. Unfortunately, this costs a lot of money and means you waste valuable time. A better approach is to refine your hiring process and employ people with prior training. This prevents the need for constant training as they already know what to do. Again, a simple little switch, but one that saves a good deal of money in the long term.
Generally, the best way to improve your profit potential is to work on making more money. However, it helps if you can save cash without harming your business. By reducing your ongoing machinery costs, you can lower your expenses while ensuring your business still performs at maximum capacity. Ultimately, this will widen your profit margins!