PRICE
Where does it fit in your equipment buying decisions?
Isn’t
VALUE
a better measurement?
In any equipment buying decision, price is a factor. It is a known and can be used to measure the other factors that impact the eventual cost. Let’s look at a center pivot irrigation project. This is a complicated process and often a large investment that can impact your operation for decades, making it worthy of serious consideration. While a complex evaluation, the total return on your investment is probably a good approach when deciding which vendor to select.
If the expected life of the proposed equipment brand is 30% longer, say 39 years instead of 30 years, would a 15% higher cost be a worthy expense?
If a given brand has a reputation of higher quality with 25% lower repair expenses and the initial cost was 10% higher, is that a smart investment?
If the project design fits the field well and is more adaptable to future system expansion, would you be willing to pay a little more up front to get better performance and a more reasonable upgrade cost for additional acres in the future?
What is the dealership history and reputation? Do they have experienced staff, a good parts inventory and are they well equipped to handle repairs and field service? What value can you contribute shorter down time and faster responses with quality work when maintenance and repairs are required? Do you witness professionalism, trust, and ethical behavior in your meeting with the dealership staff?
Does the manufacturer market share exceed others indicating solid marketplace presence with a history of regular updates and upgrades, indicating they will continue to develop and market improvements and technology gains?
If everything in the project is the lowest cost, is the dealer able to make enough margin to keep the doors open, retain qualified staff, replace equipment, and stock the parts shelves?
If you could find a brand and dealership that excelled in several of these measurements, the difference could be cumulative. Five or ten percent better in multiple areas could easily support a higher initial cost.
While price is important, many factors need to be considered to determine the best value for your business. Some of these factors are difficult to put an exact number on, but intentional consideration will help you make the best buying decision for your operation. I place trust at or near the top of my list of factors. I will gladly pay a bit more if I am confident in fair future dealings and professional service.
If you were able to buy a ticket to heaven, but it required a few years of annual income, and a ticket to hell was free, would you work a few more years for peaceful eternity or hop on the free ride to the hotspot? For me, a few more years working would certainly be a far superior choice!
ABOUT THE AUTHOR
Pete is the marketing manager for Michigan Valley Irrigation, having joined the company in 2016. He was raised on a dairy farm in western New York and graduated from Cornell University with a B.S. in agricultural economics. His entire working career of over 37 years has been involved in agriculture. A farmer helping farmers. When away from Michigan Valley he operates, Joyful Noise Farm, a small livestock and produce farm and spends time with his family.
