The Price Debate

3 tips on maximising value when buying equipment for your mine site

maximising value

Ever wondered how two things can look so similar and yet differ on price?There should always be a reasonable answer, usually associated with quality, capability or some other service or specification offered

The first question to ask is: Am I comparing apples to apples here?

9 times out of 10 with proper investigation you’ll find the answer is ‘no’.

We’ve all had this experience…two machines advertised in the same space to the same end user, yet on closer inspection one is actually built to withstand the rigors of the job and the other would be lucky to make it on site and would probably fall to pieces even if it did.

Once all the necessary extras and upgrades are added to the “cheaper” machineit’s amazing how quickly the price gap disappears!

Smart marketing can make it difficult to know the difference. Even more so if this isn’t your area of expertise!

So how do you arm yourself with the right information to make a proper decision?

You can:

  1. Take things on face value (which is generally poorly advised).
  2. Research, ask and compare

The second option is generally the best for obvious reasons!

Find out what’s really needed.

Don’t just ask the vendor (after all, their job is to sell you on their equipment) speaking to fitters, mechanics, electricians and maintenance supervisors. These people have generally been around machinery for a long time and have a good idea what to look for and what is needed both to get the job done and to be compliant. You then have a list to go back and measure your potential purchases against.

You will also be able to see if there are any hidden ‘extras’ that are actually a requirement for your site and then get a more realistic price comparison.

Quality is King.

Factors like the quality of steel used, welds, undercoat and paint, electrical outlets, proper wiring, world class components…the list goes on. All of these things add expense to a product, even something seemingly simple like going to the extra effort of using marine grade paint over powder coating can add expense to a machine, but ensures it lasts in harsh mine site environments.

But why should you care about these things?

Return on Investment.

While these extra touches of quality may seem like an extra expense come purchase time, they will save you significantly over the life of the machine and greatly improve your ROI.

Don’t put yourself behind the 8 ball.

These extra touches of quality are things you can’t (or at least not easily and cheaply) fix or add later on, meaning if you buy poorer quality equipment you are stuck with it and even worse will be buying new equipment to replace it even sooner.

Having better quality components ensures you have less breakdowns, keeps you project on track and reduces running costs.

All positives for you to hit your KPI’s!

These long term savings are important and outstrip the slightly higher price you may have paid at purchase time for better quality equipment…the equipment you actually need to get the job done.

So next time you buy equipment, take a minute to check: what am I really buyingand how do I maximise my value?

Ben Bunker.