Because many tools and shop equipment are costly, it is important to get the most from them. However, with the financial and abstract benefits of each tool and piece of equipment, calculating the return on investment (ROI) can be tricky, note officials at FASTORQ (http://www.fastorq.com), a company that designs, manufactures and sells innovative hydraulic, mechanical and pneumatic tools.
They say answering four questions can help determine if a tool or piece of equipment is paying you back.
1. Did the tool/equipment break?
If a tool or equipment breaks and needs repair, are the cost of the repairs and the financial loss of productivity being added to the tool’s/equipment’s initial cost?
If not, you are missing true costs involved in owning the tool/equipment and do not know if it provides a good ROI, say the officials. A tool/equipment with an industry-leading warranty helps to increase the ROI by removing the costs associated with unwarranted repairs.
2. Did I settle on a tool/equipment rather than get what I wanted?
If you need a custom tool, but choose to make due with a standard, non-customized one, there will be consequences, FASTORQ officials say. Ultimately, if the tool/equipment tool doesn’t meet all of your needs without much fuss, it wasn’t worth it. More time and money will often be spent trying to make it do what you need rather than just purchasing the right tool from the start.
3. Will I ever need this tool/equipment again?
Sometimes, a tool/equipment is needed once, note the officials. If an inexpensive tool that handles the job is purchased, and it is only needed once, then there is probably a reasonable ROI.
However, if the tool/equipment is needed more than once, breakage and poor performance needs to be taken into consideration, they say. Purchasing a strong and innovative tool/equipment may cost more upfront, but it will pay back exponentially by being dependable and being used over and over again.
4. Do I regret my tool/equipment purchase?
There are purchases you know were good and worth the expense. Others you are not so sure about. Maybe the tool/equipment doesn’t perform like you had hoped, or its design does not consider the operator.
If you are constantly regretting your tool/equipment purchases, FASTORQ officials advise keeping emotions in check and making decisions based on a rational analysis of available alternatives.
