What Everybody Ought to Know Before Doing A Print Machinery Investment

The problem with machinery investments

Did you know that it sometimes takes up to between 6 and 12 months for the pain of regret to set in after making a significant equipment investment? 

1. This timeframe aligns with the period when you can properly assess:
2. whether the equipment is performing as you expected,
3. its operational costs, and
4. alignment with your business strategy

The problem is by then, you're stuck with it. It's taking up space in your shop, driving your operators crazy, costing you time and money, and you're questioning what went wrong. 

How did we end up here?

No one wakes up and decides "Today's a good day to make a bad business decision".

There are lots of factors that play into the decision, like the time pressure of an old, otherwise reliable machine kicking the bucket in the middle of a time-sensitive job.

That's a problem that needs urgent attention. So it's not even like you can spend months searching, comparing machines and watching dozens of videos; trying to figure out which ones are most suitable and profitable for your print shop.

And even then, in that instance you're replacing an existing machine so the stakes aren't as high as if you were investing in a brand-new piece of machinery.

But the trouble is what can happen as a result of poorly-planned decisions, especially when it's brand-new to you and your shop.

• Financial Pressure

When the total cost of ownership hasn't been accounted for, it causes a problem. The initial cost of owning a machine may seem manageable, but ongoing maintenance, supplies, and operational costs can quickly add up. And before you know it, you have a machine on your floor that's guzzling more profits than it's earning you. 

• Misalignment with Business Needs

Sometimes print shops unintentionally invest in equipment that doesn't align with their existing services or customer demands. For example, buying a machine because you "might win a bid". Because sometimes even after winning the bid, instead of the customer ordering 3 sets every few months, they may order 1 set and don't come back. Then you're stuck with a machine that can't be justified by demand.  

• Market Changes

Another factor — and unfortunately one that we have no control over — is that the market changes. Shifts in customer preferences or market conditions, and/or advancements in printing technology, can render certain equipment less valuable. 

So if you want the competitive edge of proper planning

Properly planning and evaluating ROI before making these purchases gives you a huge advantage because:

• Your choices are better informed and based on the business' needs and goals.
• Your productivity stands a better chance of increasing, rather than being hampered by the new machine.
• You have a better grasp of cost management because you've done the research on maintenance, supplies, energy consumption, etc.
• You've considered the big picture, i.e. your broader strategic plan, and see exactly how your investment aligns with your long-term business objectives.
• You know what you're looking for in terms of ROI, and what this investment will contribute to the bottom line.

• You're confident that this equipment improves your competitiveness in the industry, allowing you to offer new services or improve existing ones and therefore attracting more customers.

And because you've done your research, you're more confident that the purchase is the right one for your shop at this time. 

Here's how to make sure your equipment purchase doesn't come back to bite you 

Now here's the thing. The upcoming print tradeshows, Section 179 purchases, etc. put a lot of pressure on print shops to make investments. So your main focus is likely how to make sure that your equipment purchase doesn't come back to bite you. You want to make sure you're investing smartly.

We've created a Print Investment Checklist, which walks print shop owners through the things they should consider when purchasing a new piece of machinery. It includes things like considering your suppliers, making sure you have enough floor space, calculating ROI, etc.

 Download the Print Investment Checklist here

Another helpful thing is seeing the machinery run live. And that's exactly what we'll be doing at the upcoming Printing United tradeshow! Visit us at booth C1225 to see our machines run live and chat with one of our product consultants.

(Or, if you can't see the machine in person, see if you can request a virtual demo from your vendor. Anything at all is better than never laying eyes on the the machinery before it arrives at your shop)

And, for more Section 179-specific information on machinery investments, check out our article here.