In this edition of “Mondays with Matt”, we talk about the importance of tracking equipment expenses and the advantages of replacing equipment sooner rather than later.
Matt expressed that any good mechanic should be tracking current market value of their machinery, how much a new machine costs and how much time and money is currently being spent on repairing machines in the fleet.
Matt shared a few justifications for spending the money to replace your machines rather than frequently fixing them.
- If you’re spending hundreds of dollars to repair a machine with a low resale value, you’re going to be in the hole very quickly.
- On top of spending money on repairs, you have to account for the time that the machine is inoperable.
- The longer you wait to replace a machine, the resale value will continue to decrease while prices of new equipment will often increase over time.
“One train of thought is that you can run it into the ground… but then you still need to replace it.”