Due Diligence Part 9: Ongoing Costs - Don't Forget Consumables!

Of course, you can’t know every scenario that might face you down the road as an owner of the product under consideration, but you can definitely create some basic projections for what it’s going to cost to replace worn or lost parts. Ask the vendor about the average cost for consumable parts, and how easy it is to get those parts if and when needed.

Another factor in long-term cost of ownership is the time you must wait for such parts. Ask about average turnaround time for consumable supplies, delivery and repairs. Include shipping costs, which can often be significant, especially for more heavy-duty equipment.

What about ease of sourcing for such consumables? Are some repair parts proprietary, or can they all be purchased at a local hardware store or home center? This seemingly small detail can easily derail a project schedule if not planned for, and time lost is money lost. 

Cleaning and Maintenance

Find out the manufacturer’s suggested cleaning and maintenance schedules, and what they consider mandatory. How easy will it be to keep the equipment under consideration clean and properly maintained on an everyday, weekly, monthly and quarterly basis?

This is a regular and ongoing cost of ownership that can really add up over time, but if you take care of it, it won’t morph into an unpleasant surprise down the road. You also need to consider unplanned maintenance. How easy is it for your crews to perform minor field repairs on the product in question? If turnaround time isn’t quick, will the vendor provide a loaner replacement until yours is back online? If so, will it cost you anything?

Of course, some maintenance will cost money, even if it’s not unplanned. Explosion-proof equipment requires factory refurbishment due to safety considerations, but make sure you know about this up front.

Read the Rest of the Articles in This Series on Due Diligence: What You Don't Know, CAN Hurt You: