FEATURE Bargain Hunt
Robert Kravitz, a former building service contractor in the U.S. and now a writer for the professional cleaning industry, explains why that second-hand bargain may end up costing you more in the long run.
When I was in the contract cleaning business I got into a habit of selecting used or previously owned vacuum cleaners as they were needed by my crew. The reason for this came down to one thing: costs. While a new vacuum cleaner might cost £200 or more, I could select a used machine for about £50 or less.
This was a big cost difference, which I interpreted as a big cost savings. But was it? I never took notice that most of these used vacuum cleaners only lasted about a year. Once they broke down, I usually had them serviced once or twice, usually for about £40. After that, I would just buy another used one.
So, did I save money? Let’s punch the numbers:
If I purchased three used vacuum cleaners over a three-year period, that would be £150. Let’s say each of them was serviced once during this time period amounting to £120. That would mean owning these three “cost saving” vacuum cleaners actually cost me £270.
Now, if I purchased one new vacuum cleaner for £200 and there were no repair problems during the same three year period, I would actually save £70.
The point I am trying to make is that it is very important to think about not only the cost of a cleaning machine when purchased, but also the costs that can mount once you own the machine. This is referred to as total cost of ownership (TCO), and it’s a key consideration when selecting many things, including cleaning equipment.
The TCO Of
Floorcare Equipment We’ve seen how important it is to consider the TCO of vacuum
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cleaners. When considering more pricey cleaning equipment, such as floor machines, the TCO can become an even bigger issue. Below is a comparison of different automatic scrubbers as well as a new system recently introduced, an AutoVac floor care system. Let’s run the numbers again to help us determine the total cost of ownership of these comparable floor scrubbers on an annual basis:
• A walk-behind, 32-inch automatic scrubber that can clean almost 15,000 square feet per hour costs about £7,800 to purchase and another £845 to service and maintain*.
• A 27-inch walk-behind scrubber cleans 12,500 square feet per hour costs approximately £6,500 to purchase and roughly £715 to maintain.
• A 20-inch walk-behind machine costs £4,000 to purchase; around £500 to maintain; this machine can clean 9,700 square feet per hour.
• A battery powered AutoVac costs £2,250 to purchase and £250 annually to maintain. It can clean about 20,000 square feet per hour**.
Before comparing the TCO of these four floor care systems, we must also compare how much floor space they can clean. This is significant because labour costs must invariably be considered when it comes to floorcare. If the machine enhances worker productivity – meaning it cleans more square feet per hour – that alone can be a significant cost saving.
In The Budget? The total cost of ownership of cleaning equipment is typically not figured into the equation when it is being selected. Instead, sticker price, bells and whistles – and even how the machine looks – are often paramount when making a decision. The problem this creates is that the costs to own the machine are not budgeted for. Very often a cleaning contractor will select a floor machine, for instance, but not have the funds at the time to repair it when it breaks down. Now those bells and whistles mean nothing.
It is very important to think about not only the cost of a cleaning machine when
purchased, but also the costs that can mount once you own the machine.
Hopefully, you will learn from my experience. It is always important to consider the total cost of ownership of cleaning equipment and its potential to improve worker productivity. Comparing these costs is how you find the true savings when selecting cleaning equipment.
*All amounts are based on costs in the United States and have been converted into pounds. These amounts may be more or less in England and in other parts of Europe.
**Square footage cleaning rates based on ISSA’s Cleaning Times.
www.alturasolutions.com
www.tomorrowscleaning.com
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