Do You Really Need Backup Food Processing Equipment?
Running a successful business means you should always be aware of what assets you’re working with and ensure you extract every bit of value you can out of your equipment. In the food processing and packaging industry, one important questions to ask yourself is, “Do I really need backup food processing equipment?”
The answer to that question will vary depending on the unique attributes of the business you run.
Some businesses have longer lead times that enable them to keep on hand only the equipment they truly need. Others may work on a tighter timeline or on a larger scale, and may not be able to afford a delay in production, so having the redundancy of a backup machine in case the main one breaks or needs maintenance is a must.
Sometimes, fluctuation in business lead to ownership of backup equipment. If sales are strong for a new product you’re marketing, and you’re trying to ramp up production quickly, would you feel vulnerable without a backup machine? Or maybe you were recently awarded new business and bought additional equipment to meet production needs, but then business slowed down and you ended up keeping the extra machine around as a backup.
Last but not least, anytime you purchase a new or quality reconditioned machine, you may be used to shelving your used equipment and keeping it as a backup to the newer machine.
Due to this wide variety of situations, most food processing and packaging businesses end up with at least some backup equipment on their hands.
However, if you do have backup equipment that’s sitting around, it’s worth it to occasionally ask yourself, how long has your backup equipment been around, and what are the odds that you’ll actually end up using it? If it’s been several years and you haven’t ever had a need to use your backup equipment, chances are you may have your operation working in such a way that you don’t actually need a backup.
Another thing to consider is that your backup machine probably isn’t getting used much, and probably not getting a lot of TLC or maintenance. That means its condition will deteriorate over time, and that you’re essentially sitting on a depreciating asset without getting any use out of it.
Why not consider selling the backup equipment you don’t use, and use the freed up cash to invest in other parts of your operation? Or, if you’re nervous about not having a backup, you could always put away the money from the sale in a dedicated account that’s there to fund the expense when a machine does break or need maintenance. Unlike an unused piece of backup equipment, cash in an account will not depreciate (aside from inflation), and it gives you other options when it comes to running your business effectively.
Whether you’re looking to purchase a backup food processing machine for your operation, or are looking to liquidate your backup equipment, M&M Equipment can help. Get in touch with us today!