Whether you totally crushed your 2016 resolutions, or 2016 totally crushed you, it’s a new year so it’s time to set your 2017 resolutions. Sadly only 8% of people reported successfully keeping their New Year’s resolutions. So if you slipped, you’re in the majority. Now, it’s time to try again! Upon making your 2017 goals on January 1, you have over 364 days to make it happen. You have probably already begun implementing your personal goals. Spending less and saving more money is often at the top of everyone’s list. But are you setting the same type of financial goals in your business life? It’s been said that a good employee spends their employer’s money like it’s their own. So when it comes to buying service agreements to maintain your organization’s valuable equipment assets, have you done the due diligence required to ensure that you’ve purchased the best service at the best price?
Below are 5 tips on how to choose service wisely this year.
Have you been continually renewing the Original Equipment Manufacturer (OEM) service agreements simply because it’s been the norm? Do you feel like you have been getting what you’ve paid for? Maybe it’s time to reevaluate your needs and weigh some other options. If you bought the platinum plan, did you receive platinum service? Since it’s a new year, it’s the best time to start taking inventory and reassess your current service situation.
Start getting organized by creating an equipment asset list and identifying which equipment is covered by a service agreement and which equipment is not. Next, check the coverage levels for the equipment under service agreements: is it a full service agreement, preventive maintenance only, labor only, depot service, inspection/calibration only, etc.? You will also want to collect any manufacturer warranty information that you may have for newer equipment. Include the expiration dates of these agreements and the annual price. Depending on the size of your organization you may need to ask for cooperation from other departments in order to locate all of the documents and complete the inventory. Don’t bite off more than you can chew. Take one step at a time. This process can be time consuming but is well worth every minute in time and effort.
Next is to determine the necessity of each piece of equipment to the over-all success of the organization. Using criteria such as availability and access to alternate equipment to help determine the cost and consequences of the equipment not being available for use. Rate each piece of equipment on a scale from 1 to 5, with 5 being extremely necessary for day-to-day business. The cost to replace the equipment should be considered as well. This valuable information will help to determine which equipment will warrant the purchase of a service agreement and will also help to discern the appropriate level of service that is required.
Poor performing service vendors can have a significant impact on your business. The consequence of a poor performing service vendor is inoperable equipment and lost revenue. Choose your service partners wisely. Shop around. A quick internet search may uncover multiple service organizations that can repair and maintain your equipment. You may want to start tracking the level of service that you are currently receiving from your vendors today. This information will help to make informed decisions on which vendors you wish to utilize in the future.
If you make the determination to buy a service agreement, make sure that you fully understand the terms and conditions of the agreement before signing it. Contract language can get a little murky; so it’s important to get clarifications and/or verbal promises in writing. Also be wary of long-term service contracts that lock you into utilizing one service organization for the duration of the contract. Service organizations can change over time; corporate mergers, acquisitions, reorganizations, and staff reductions can dramatically affect the quality of the service provided.
Wishing you the best of luck in keeping your 2017 resolutions for yourself and your equipment maintenance management needs.
If you would like help keeping your resolution for saving more money, try Remi! Send in your current equipment service contracts to see if we can put you back in control of your expenses! Please contact Shelley Schuster at email@example.com or visit our website at www.theremigroup.com.
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