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Understanding Equipment Total Ownership Costs vs Purchase Price.

Total CostWhen you are purchasing a piece of equipment, you obtain competitive quotes, verify specifications and generate a purchase order. For that matter, just about anything we purchase goes through the same process. However, there is much more to purchasing forklifts and other material handling equipment. We have found, over the years, that often there are variables that can greatly affect the total cost of ownership of anything, be it an automobile, forklift or a giant cargo container.

The price you pay for your piece of equipment, by most accounts, reflects about 10% of the total ownership costs of that piece of equipment. This leaves 90% of your total costs up in the air. Depending on many variables, you could pay much more for the equipment than you needed to, or much less. These variables include:

Performance and Reliability of Equipment – Comparing cost per hour to operate can give you a good idea of what competing pieces of equipment will cost you over their useful life. When comparing cost per hour to operate, you should be sure you’re comparing similar models under similar circumstances. A lift truck operating 1500 hours a year for a light weight product manufacturer will cost far less over its lifetime than the same lift truck operating at a recycling facility. This cost should reflect general maintenance requirements as well as fuel costs.

Fuel Consumption – While this is often a part of performance and cost per hour, knowing the fuel costs for each comparing brand and calculating total costs over the life of the equipment can sometimes be quite an eye-opener. In addition, what are your fuel alternatives? Can you use electric models? Thinking outside the box may result in lower costs to power your forklift and other lift equipment.

Specifications vs. Operations – It is rare that two 5,000-lb-capacity forklifts from competing brands will have similar specifications. Knowing what your facility will accommodate and comparing that with each model will give you insight into how each model will perform, given your operating parameters. Factors include: aisle width vs. turn radius, draw bar pull, suspension and ergonomics compared to your floor condition, indoor/outdoor use and ceiling height/rack height vs. max lift height. You will also want to compare features between brands to ensure that each lift truck model is equipped with the proper components to meet your operational requirements. For example: Can it operate properly inside your ice cream freezer?

Ergonomics – A comfortable and smooth-running piece of equipment will provide you with increased productivity. These are costs hidden in equipment that are quite real in daily operating conditions. How much time and research and development, does each brand put into the comfort and ease of use of their equipment? Happy, comfortable operators are simply more productive.

Safety – Never underestimate the safety features of your equipment. What equipment is being specified and what equipment is optional from each manufacturer is very important to know. Reducing your accident costs or product/facility damage can make a big difference in your total fleet operational expenses.

Useful Life – Finally, how many hours can you expect from each piece of equipment until the cost to operate becomes cost-prohibitive? This can vary widely depending upon brand and model. But having some qualitative and quantitative information on hand, if possible, will help you make a better decision about the total cost of operating each unit/model. Our flagship line, Linde forklifts are widely considered the world’s most cost-effective and productive forklifts. Their engineering and construction make them the lowest total ownership cost forklift available!

There are many factors beyond price tag or lease rate that can help you make good decisions about the equipment you purchase. Having a partner that listens, evaluates and fulfills your needs is essential in building a fleet that is most productive and less costly in the long run. Contact us at 866-393-9833 to speak to one of our material handling professionals about the right forklift for your operation.

 

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Long-Term Equipment Rentals

Changes may ensue quickly and unexpectedly. Owning in addition to investing in depreciating capital equipment will frequently and most often be a large specific drain on your company’s money/cash flow as well as si heavy as a large asset on your books. A nicely thought-out forklift acquisition strategy is able to often include rental options.

Tri-Lift NC Inc maintains experts at designing brief and long-term plans to obtain the equipment you’ll need at the terms which are flexible enough for you to accept. We will likely work with you to style a custom designed rental and equipment acquisition strategy that assists you to achieve your own materials handling goals as well as accounting goals.

The benefits of of Long-Term Rental accommodations include:

Absolutely no up-front capital cost. Whether your company needs one forklift to or looking to acquire an entire fleet, we are able to deliver to your door immediately, and an LTR options allows you to preserve hard-cash for other running business needs.

Reduce your growing fleet and write off stand-by equipment simply by renting from Tri-Lift.

Eliminate obsolescence with flexible upgrades whenever your operational business needs have changed.

Renting is generally classified as a 100% Business expense. Discard complex accounting allowance and depreciation schedules.

Tri-Lift’s exclusive Single Page Paper Performance Dependent Contract means one monthly payment for your own long-term rental, and then we handle all the of the maintenance.

Flexibility. The client can rent in several different term lengths like by the day, 7 days,  and by the month…. we even offer 12 months rental terms for those clients interested in short term rentals with Long-Term Rentals offering terms of up to 8 years!

If any any moment during your rental term, your company decides that you would rather purchase and own the quipment that you have been using rather than renting it, no problem. Simply contact the rental department at Tri-Lift NC Inc or your regional equipment representative and we can works out terms for ownership quite easily since the assets below to our rental fleet rather than a third part bank.