Should You Consider Purchasing New Products in the New Year?

Those who work in the food and beverage industry are no strangers to spoilage, and we’re quick to discard any ingredients that are past their prime. All you have to do is take a look (or a whiff) to know whether something is still viable. Keep it or toss it — it’s a simple choice in most cases. 

On the other hand, with physical and non-perishable assets, it can be trickier to determine when it’s time to trade up for a new model. Think about equipment and technology — your refrigerators, stovetops, company cars, cell phones, and computers. It’s not as simple as giving it a sniff test; instead, you have to be mindful of a product’s depreciating value and how its performance measures up to industry standards.

It may be evident in some cases, like a refrigerator that doesn’t stay cold. Other times, though, you may find that your equipment is holding on, even if it’s not at peak quality. 

Whether you are the type to consider replacements at the first sign of wear and tear or you prefer to hang on until the very end, purchasing a new asset requires forethought to ensure the cost and timing do not negatively influence your business.

As you set your business goals and create a budget for the year ahead, here are a few ways to determine whether you need to factor in new equipment expenses.

Your team has asked for it.

This is an easy one. Your team is in the trenches, working with these fixtures and products every day. If they’re telling you it’s time to buy new equipment, hear them out. Ask them about the issue. Is something malfunctioning? Is it dangerous or simply inefficient? What would they like to see as a replacement?

Listening to your team not only reveals the gaps in your team’s workflow but will also provide insight into what would help them perform better. For example, maybe they’d like the next stovetop to have a few extra burners or a company car that is more energy-efficient. Your on-the-ground team knows best, so make sure to consider their feedback.

Industry trends are calling for it.

Sometimes technology evolves faster than the lifespan of your existing equipment, which may call for an upgrade before an asset’s lifespan is up. Stay up-to-date on the latest industry trends to see what’s new on the market and determine whether it’s worthwhile. 

While there’s no need to jump on every trend, you may find that certain new technologies would support your team’s productivity and produce a strong return on investment. In an age where virtually everything is “smart,” don’t rule out the idea of upgrading for the sake of convenience and efficiency. If your existing equipment still has some legs on it, consider selling it to ease the burden of a significant expense.

You have the time and money to support the purchase.

While it may seem obvious to ensure you have the financial foundation to support your investment (whether it’s through cash or a credit line), don’t forget that replacing equipment can also involve a significant time commitment. You must dedicate time to research, purchasing, installation, setup, and implementation.

Even if research and purchasing are simple—say you know the model you want and buy it online—installation of major equipment can mean your team is out of the kitchen for a full day, barring any issues. Even smaller purchases, like a new computer or software, will take time to set up and implement into existing processes. 

Depending on the fixture, it may also take time for you and your team to familiarize with its features. Even something as simple as a stovetop may have different settings to learn before using it to its full capacity. The same goes for new tech, from getting to know a new operating system to onboarding a robust accounting software.

Needless to say, sometimes you have to purchase a product out of necessity — at which point these signs go out the window as you find an emergency replacement. However, if you’re not up against the wall, be mindful that there may still be a good reason to buy new equipment. Upgrading before it’s too late will prevent you from finding yourself in a stressful last-minute situation, so stay tuned into your team and the industry at large to determine the best time to make your investment.

Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 16% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.