Facility managers often face the challenge of justifying the purchase of new cleaning equipment. With limited budgets and numerous demands, convincing upper management to invest in new machines can be difficult. However, by following a few tips and strategies, facility managers can make informed decisions and successfully justify their cleaning machine purchase.
Start with a Thorough Analysis of Your Current Process
First, gather data and analyze the current cleaning procedures and equipment in use. Evaluate the facility’s square footage, the cleaning staff’s efficiency, and any storage space constraints. Identify specific areas that could benefit from new equipment.
- Highlight labor savings: New equipment, such as a ride-on floor scrubber, can reduce the time and effort required for floor cleaning.
- Emphasize improved procedures: New equipment can offer enhanced cleaning procedures, allowing tasks currently outsourced to be handled in-house.
Calculate the Equipment Return on Investment (ROI)
Calculating the return on investment (ROI) is crucial in justifying the purchase of new cleaning equipment. Facility managers must demonstrate the investment’s financial benefits to upper management. By considering factors such as initial cost, maintenance costs, labor savings, and improved productivity, facility managers can accurately calculate the ROI and make a compelling case for purchasing new equipment.
- Initial cost: Compare different models and brands to find the best value for your budget. Weigh the initial cost against the long-term benefits and savings the equipment can provide.
- Labor savings: If the new equipment is more productive, calculate the annual hours saved and multiply this by the hourly cost of the employee, including benefits. This annual labor savings, divided by the equipment cost, provides the ROI percentage.
Consider Other Factors Besides the Purchase Price
When justifying new cleaning equipment, consider more than just the purchase price. Look at factors such as durability, efficiency, versatility, and safety features to ensure the best choice for your needs. Thoroughly research and compare different models to find the equipment that offers the best overall value and meets the facility’s specific requirements.
- Total Cost of Ownership (TCO): Beyond the initial purchase price, TCO includes all costs associated with owning and maintaining the equipment. This includes maintenance and repair expenses, routine upkeep, and replacing worn items. High-quality equipment with a lower TCO can lead to significant savings over time.
Think Beyond Cleaning Machines
Sometimes rephrasing a problem can lead to new, unexplored solutions. For example, instead of asking, “How much should I spend on a floor scrubber?” ask, “How can I clean this area for the lowest total cost?” This approach requires examining the entire process, not just the cost of a piece of equipment.
- Considerations: What floor finish should be used? Should you use brushes or pads? What chemicals should be used? Can dust mopping be improved? Would a bulk chemical or dilution control station lower costs? What is a greener, more sustainable process?
Consider Leasing Versus Buying Equipment
When considering investing in cleaning equipment, weigh the options of leasing versus purchasing. Leasing can benefit businesses with limited storage space or fluctuating needs, allowing access to the latest equipment without upfront costs. On the other hand, purchasing may be more cost-effective for businesses with consistent and high-volume cleaning requirements.
- Benefits of Owning: Significant cost savings over time, despite the initial purchase price. Owning allows for customization based on specific cleaning procedures and staff preferences.
- Benefits of Leasing: Flexibility to upgrade or change equipment as needed without the burden of a long-term commitment. Leasing also provides access to the latest cleaning technology without a hefty upfront cost.
Ask for Help
Justifying cleaning equipment purchases can require substantial upfront research and experience. Having someone knowledgeable in your network who has access to current state-of-the-art products is helpful. Pike Systems representatives can help you sort through your choices and justify your budget.
- Pike Systems representatives can: Calculate equipment return on investment, understand your total cost to clean, and determine the best products and processes to deliver the lowest total cost to clean.
Frequently Asked Questions
How do you justify the purchase of equipment? Consider the cost-benefit analysis of the purchase. Equipment can help improve efficiency and safety, reduce waste, and increase employee morale. Additionally, purchasing the right equipment can be a cost-effective way to provide high-quality service and extend the life of surfaces.
What are the advantages of cleaning machines? Cleaning machines offer a variety of advantages for businesses that require thorough and efficient cleaning regularly. They can drastically reduce the time it takes to clean a large space compared to manual methods, are less labor-intensive, and require fewer staff members, resulting in lower labor costs.
What is the Total Cost of Ownership (TCO)? TCO is an economic concept considering all costs associated with a purchase over its expected lifetime. This includes the initial cost of the equipment and any ongoing maintenance, operational, and energy expenses. By considering these factors, businesses can make informed decisions and determine which product is the most cost-effective solution for their needs.