The purchase of new equipment is the best, but also the most expensive option. The new machine has the manufacturer’s warranty, which protects the customer in case of a potential failure during the period of protection. We should remember that defects can happen even in the new equipment and the downtimes in the fruit sector are very costly, especially if they occur during the season. This does not change the fact that a new machine, in terms of statistics, requires less servicing than a second-hand one and thereby it reduces the total cost of ownership (TCO). Buying a new product, you can use specific equipment from the offer and personalise it with additions for your own needs. This option of purchases provides strong possibilities regarding the selection and matching of the machine productivity to own production parameters. Choosing this path, you have more time for making a conscious, calculation-based, purchase decision. When buying a new model, you are certain that you own a new, highest productivity technology, which corresponds with the current trends, and which will translate into a shorter ROI. Although the second-hand machine is less costly, it will be easier to finance the new equipment by leasing. A new machine may also be the subject of an application for a grant. Even more, if the equipment does not meet the customer’s expectations, it will be possible to sell it and recover a part of the invested capital.
Looking at that from another perspective, the investment in a new machine may be a stimulant for the company development. The spending of a large amount on the purchase forces the investor to use the equipment in 100%, which can mean the opening to new markets, suppliers, or the expansion of the business profile.
What are the drawbacks of a not used product purchase? Firstly, a higher cost of starting the investment. When buying new equipment, you block the money, which you will not have available for other expenditures. So, you reduce your cashflow. Secondly, machines for trays sealing, fruits packaging and sorting, or labelling are advanced pieces of equipment, which are not available on the spot. For the new equipment you will have to wait a dozen or so weeks from the contract signing.
The second-hand equipment is cheaper than new pieces, which is the crowning argument for persons looking for a second-hand solution. Why these savings can turn out illusory, we will tell later.
What are other, apart from the price, values in favour of purchasing a used machine? Definitely the fact that the used models are checked, and their parameters have been confirmed in practice, while the selection of a brand new machine may result in ‘teething problems’. Machines in the second-hand circulation are available on the spot and due to that such a machine can work in your company immediately after the transaction completion…
… if you can implement it and integrate with the production line. When deciding for a second-hand product, you must take care of the machine logistics, commissioning, and staff training on your own. When buying the new equipment, you usually get the installation and training in the package. A narrow selection is another drawback of this form of purchase. You have available only that, which is now on the secondary market. So, you buy what is available and not what you really need. Even more, choosing the second-hand equipment, you decide for a machine manufactured a few years ago. In the machinery sector the technological progress is very dynamic and manufacturers every year enhance their offers with novelties, which really improve the key parameters: productivity, speed, durability, and energy efficiency. When choosing a machine manufactured a few seasons ago, you have available only this, what at that time was within the manufacturer’s capabilities. Certain machines work that long that finding the spare parts or the software updating can turn out a challenge, and due to that the equipment cannot be adapted to the new guidelines.
The fact of uncertain history of second-hand goods is the key argument raised by the supporters of new products. The same applies to the sector of machines for fruits packaging and sorting. Unfortunately, the sector has not achieved the facilities available to drivers buying a second-hand car. There are no such practices in our sector. Therefore, the buyer must trust the seller with respect to the machine productivity and technical condition. Naturally, this can be verified personally, but that requires specific technical knowledge. A higher probability of finding a good second-hand machine exists if you buy the product directly from the manufacturer or distributor. Another issue is that even well serviced and cared equipment, which has already worked a few thousand hours, will break more often than a new machine. This generates the service costs (let’s remind: machines from the secondary circulation are not covered by the warranty) and, primarily, losses in the production caused by downtimes.
The lease is another option. In this version the equipment formally remains the property of the lessor, and the lessee can use it based on defined rules in a given period. The possibility of testing the technology before starting an investment project is the advantage of such a solution. The lease cost is paid in instalments due to which the company does not have to block the CAPEX budget. A low cost of investment starting means that there is no need to take a credit (and additional related costs), which can happen in the case of a purchase. The lease is also a good option for companies, which want to test a solution (e.g., start packing of a new type of fruits) and are not certain, whether this business branch will be profitable or whether the trend continues. If it turns out that it will not, after the lease contract expiry, they can return the machine and go back to the proven topics. The lease is an option favourable for companies that are packing in seasons.
The lease provides high flexibility, but it is not a solution without drawbacks. Because you have to pay more for the comfort and for a lower risk. If it turns out that the new project is less profitable than assumed, the machine lease will be a specific cost for the lessee. But if this is the material for profitable business and the company is willing to be more engaged, it will reach a moment when the operation of the own machine is more profitable.
The outsourcing of the production (or its part) is an alternative to both above options. In this case, you do not have to worry about the selection and purchase of the machine, the organisation of money for the purchase, or finding the place for the machine in your packing shop. You can choose among various service and technology providers. You are not burdened by the service costs or the purchase of consumables. The possession of a new or used machine in your plant requires personnel training and the knowledge transfer. By the outsourcing of the production such topics are no longer your problem.
A perfect solution? Not necessarily. When you delegate this part of production to someone else, you lose control of the process, you risk inaccuracy and poor quality, unpunctuality of the service provider, etc. You are also left to his business priorities and changes in the price policy. Furthermore, the transportation of packages with fruits to the place of sealing may be a big problem (maintaining a low temperature, mechanical damage to fruits, etc.). An additional cost in the form of logistics appears. The leakage of data on the production processes in your organisation is a potential risk. The service of outsourcing will work well if you need to serve one batch of production or one contract and you have a trusted service provider, who will do the job.
For more than a decade our company has been delivering machines checked by the fruit sector worldwide. We cooperate with the best manufacturers, e.g., a British company Packaging Automation Ltd or an American enterprise A&B Packing Equipment Inc. In our offer we have all the equipment necessary to develop a comprehensive line for blueberries, cherries, cranberries as well as other types of fruits and vegetables. Our machines are available in the form purchase and lease.
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