Purchasing a submersible pump is more involved than many of our customers initially think. Your application and situation are unique. As such, the submersible pump that is right for you must take these factors into account. In some instances, the right pump for your application may be more expensive than the pump it is replacing. Rather than falling back to a cheaper pump that doesn’t address all of your needs, we recommend considering the Total Cost of Ownership (TCO).
TCO is the accumulated expected costs associated with the pump throughout its service life. Understanding the concept is one thing but applying it to your budget is another. Thinking in terms of TCO for equipment usually means thinking differently about how you budget for it. But, the benefit could be thousands of dollars in savings. Below, we’ll examine three of the biggest budget issues you may have to work through.
Internal Employee CostsThe biggest argument we hear when we bring up costs for pump repairs and care is that “it’s the maintenance crew’s job and they’ll take care of it.” It’s not seen as a cost because they’re paid to do all the maintenance from pulling the pumps to changing lightbulbs. But, consider this: how many companies have maintenance teams with enough staff and time to not only fix everything that breaks, but also perform preventive maintenance work? With the right submersible pump, the time currently spent pulling and unclogging the pump could be used to do that preventive maintenance to keep the lines running and prevent additional downtime. Tracking labor costs for your internal maintenance teams will allow you to quantify the opportunity costs of poorly performing pumps.
Capital Budget vs. Operating BudgetThis argument is going to require seeing the bigger picture and the good of the company as a whole. The cost of the pump itself usually comes out of a capital budget while maintenance and repair costs come out of an operating budget. In a lot of companies that’s a big deal as each budget generally falls under different departments or owners.
We see a lot of companies who have a large operating budget, but a small capital budget. This causes them to buy a cheaper pump and then pay more for the maintenance. These companies can’t, or don’t, spend the money to buy the right pump, but can spend the additional money to fix it. When you factor in the downtime and associated costs for repair, spending the additional capital money up front more than offsets the resulting operating costs after the purchase.
Replacement and Maintenance TimingMany times, pumps fail and have to be replaced quickly at times you don’t expect. So, you go with the cheapest pump available because you only have a fraction of the budget left to use. The intension is to upgrade when the cheap pump fails. The pumps don’t last long and can rarely stand up to the job you need it to do. So, the result when factoring in all the costs is that you pay more than if you just went with the pump you really need.
Budgets should also be considered when you factor in future years for the maintenance costs. Some companies are ok with higher maintenance costs because they don’t hit the budget until next year and the year after (and so on). But, how good would you look if you came to the table with lower operating budget needs every year? What other projects could benefit from that reallocated money?
We can help you select the right pump for your application. And, we can help breakdown the TCO benefits in a way that can help you get the approvals you need. It all starts with years of experience to diagnose your needs and the expertise to recommend the pump you need, guaranteed.
Contact us at +971 4 252 2966 to request more information or to initiate a personalized evaluation of your submersible pump needs.