Next to inventory and labor, the equipment you need to run your business probably represents your largest expense. These three tactics can help you save money on your equipment purchases.
Purchase Used Equipment
Used equipment can often be purchased at a fraction of the new price without sacrificing functionality. Used offset printing machines for sale at secondhand dealers can be an example of a large piece of durable equipment that makes a good candidate for buying used. You may also want to check online or look for remodeling or business liquidation sales. For some types of equipment, such as office furniture, you may be able to find a good deal at a thrift store or even a yard sale – the internet is also a great place to find the right furniture to suit your office and your budget.
Negotiate for a Better Price
Whether you are purchasing new or used, you can sometimes save money by negotiating for a lower price. Start by determining what your minimum requirements are and what the maximum amount you want to pay is. Even if the vendor’s first offer seems good, try offering them a lower, but still fair price. Be polite, but also prepared to walk away if you don’t get the deal you want.
Take Advantage of Tax Incentives
Certain types of equipment can be immediately expensed on your return the first year you begin using the equipment. The rest of your equipment should be eligible for annual deductions for depreciation. Additional tax incentives may be offered to encourage the purchase of certain types of equipment, so it may be a good idea to consult your tax professional to see if you are eligible for any other tax credits.
Unwise equipment purchases can quickly eat into your bottom line. Shopping used, negotiating the price and taking advantage of tax incentives are all good ways to increase your profits, by lowering your equipment costs.