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Initial Purchase vs. Cost of Operation

Number of messages: 5

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mike_j
California, United States

In today's market which is a bigger concern, Intial Purchase Price or overall Cost of Operation?

Posted 20 Jan 2007 6:02 AM

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bojan_p
serbia, Serbia

My plant is purchasing at this moment five units up to2.5 tons,both characteristics are involved,the proces(buyer-seller) must be in two ways.The ultimate request is reliability and a lowest price it can be.

Posted 20 Jan 2007 6:59 AM

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BENNY
Michigan, United States

We have found that you should always try to calculate the total cost of ownership over the economic life of the vehicle

Purchase price, preventive maintenance frequencies, cost of replacement parts, reliability of the equipment based on other users input, warranty of the vehicle, dealer support, ergonomic features of the vehicle.

To base an aquisition on the purchase price alone would not be a true business case.

Posted 1 Feb 2007 11:11 PM

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GALIFTER
Georgia, United States

Benny - Not only would it not be a "true business case", but it would be stupid.

Posted 2 Feb 2007 12:44 AM

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bill_reimundus
Essex, United Kingdom

It's true that the overall cost of forklift operation should take precedence over initial truck cost but defining what lifetime cycle costs should be needs care. One should, for example, include interface costs within total operational costs, like how a truck affects costs like warehouse construction and rental, utilities, and not least truck productivity in terms of pallets moved per hour. Some types of forklifts, in particular the articulating kind, (Bendi, Flexi, Aisle Master,) can save so much space, time, and maintenance costs that they can allow the closure of remote warehousing sites and so give instant truck payback.

Posted 14 Feb 2007 10:41 PM

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