"What's the cheapest price we can get on a new machine?" This difficult question is pondered every day among companies planning their next capital expenditure. And for good reason! Pressure to cut costs and increase productivity is the norm, and one of the easiest places to look for savings is in big purchases like production equipment. Sometimes, however, the lowest price is simply unaffordable.

How "Low Cost" Can Drain Your Profits
In manufacturing, there is a great myth about low price as it relates to the real cost of machinery. More often than not, the lowest price ultimately exceeds the "higher price" when production inefficiencies, delays, breakdowns and other build-quality issues cause production lines to run below performance standards. Such was the case with one Creative Automation customer who couldn't resist a lower price from a Creative Automation competitor.

An Unfortunate Experience with "Cheaper"
After multiple runoffs at the vendor's facility, the new, low price equipment was finally shipped. Unfortunately, all the issues with the machine were still not resolved and startup was an overly long process that ate deeply into profitability. Months went by and full capability had still not been achieved.

Taking the obvious cue from the difficulties with the cheaper equipment, the company committed to buy quality from a reliable vendor for their future needs, even if the initial costs were higher. They knew from experience that total cost of ownership, when all factors were considered, would be less in the long term.

Righting the "Equipment Ship"
Since the experience with "cheaper", the customer has taken delivery of several machines from Creative Automation, who remains that reliable "vendor of choice" for automated material handling and processing equipment. Production efficiencies are up and labor costs are controlled because of wise planning and a commitment to forward thinking.

It is always tempting to take the lowest price. The manufacturer represented in this story found out the hard way that a lower price will often become a premium price (and then some) in the long run. Sourcing the best available machinery pays for itself in productivity and profitability, and can quickly make up the difference between the low price and smart price.

If your processing environment is due for an upgrade, contact Creative Automation at 715-223-6321 to begin discussing how Creative Automation processing and automated material handling equipment can improve your production reliability and workflow.