The Art Of Comparing Apples To Oranges: How to evaluate two different proposals

by Eric Lunsford
March 14, 2016
Comparing Equipment Purchases

Be sure when evaluating equipment purchases that you are comparing apples to apples

“In The Absence Of Information People Will Buy Based On Price.”

I’ll admit that I can’t for the life of me remember who said that but I don’t believe I have the genius to think it up myself. And the default information finder of the 21st century, Google – hasn’t helped at all.

When clients are comparing two alternative proposals, far too often we find them preferring the cheaper option because it is exactly that, cheaper upfront…

The reason I say upfront is because when you buy a pump or a blower or an air compressor you are actually making a capital investment in your business.

You either have an existing unit that needs replacing or you need it as part of new process. No doubt that process is either going to cut costs or is going make you money by allowing you to offer up a new product or service.

So while it is tempting to pay as little as possible up front there is more to the purchase than just sticker price.

Let’s work through an example say purchasing a new air compressor unit.

We often find ourselves competing against the 800lb gorilla in the market and they will typically give away their unit in order to get the order; knowing full well that once you’ve brought their unit you are locked in with them for the life of the unit for spare parts AND servicing.

Sadly they know that you can’t shop those around and that you’ll have to pay their price. And their margins on parts and servicing will more than make up for the money they gave up on the initial purchase.

So while you might have saved money on the initial purchase, you will pay more over the lifetime of the purchase. Which means you haven’t actually cut your costs the way you thought you did or in other words, you haven’t made as much additional profit from your new products or service as you anticipated.

This is called Total Cost of Ownership – it’s a common metric for capital equipment purchases.

The Gardner Denver air compressors we carry might be a little more costly upfront than some of our competitors however you’ll find they are actually very inexpensive to own over the life of the compressor. Our parts pricing is competitive and our service contracts are more competitive (and handled by our own Gardner Denver factory trained service technicians). We do this for the simple reason we don’t run an extortion racket to make back the discounts we offered selling you the unit in the first place.

Along with the slightly higher price you also get better quality components and construction so that you’ll need less maintenance and repairs. Which means that you know your air system is doing what you wanted it to do all along – providing the reliable air you need without interruption.

Regardless of if you are looking for a new pump, air compressor, blower or vacuum pump, here at Pye-Barker we can help you evaluate your options so that you get the best option for your requirements and the highest return on your investment. Give one of the team a call at 404-363-6000 or drop us a line

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Savannah Office Address:
1105 Louisville Rd
Savannah, GA 31415
TEL: (912) 238-0303
FAX: (912) 238-5214
Forest Park (Atlanta) Address:
121 Royal Dr.
Forest Park, GA 30297
TEL: (404) 647-0986
FAX: (404) 361-8579
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Sylvania GA 30467
FAX: (912) 564-2636
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Orlando, FL 32824
FAX: (321) 282-6424
Main Switchboard:

(404) 647-0986

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