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Massage Today
May, 2011, Vol. 11, Issue 05

Equipment Amortization 101

By Angie Patrick

At some point in our lives, we have all had an expectation that was proven to be unrealistic in the normal course of life. This might be expectations we have from family, from friends, from our car, maybe our relationships, even down to the products we buy.

I think it is only human; we all want what we want, when we want it, and how we want it. It is the society we live in and it is an incredibly common happening.

While I am no expert in on human behavior or interpersonal skills, I am an expert on products. And I have had the good fortune to be in this business for over a decade and have pretty vast experience with various manufacturers, products and suppliers. I have seen things happen to therapists and spas in the course of business that could be easily avoided with a little information. Below is some insider information intended to help make buying products and equipment a bit easier, whether it be from a supplier or direct from a manufacturer.

Tips on Buying Goods

Buying goods should be a task in which you have full confidence. I believe buying Professional Grade Products can help you make certain your products can withstand the rigors of professional repeated usage. Manufacturers and suppliers want nothing more than to please a client. (It is our prime directive!) But sometimes meeting those expectations are not so easy.

A product warranty is a miraculous thing. Most Professional Grade Products offer a limited or lifetime warranty to protect the buyer against manufacturer defects or shortcomings. These are especially handy when something breaks down within the warranty timeframe, and you can get a replacement or repair in a timely fashion. Often, the warranty is offered as a safety net for the buyer, given the buyer follows and complies with all usage directions and procedures.

And while manufacturers should have no problem whatsoever in caring for items in the marketplace still under warranty, there is always a segment of customers who have overinflated expectations about product performance. The purpose in sharing the following scenarios with you is not to say there are any issues with particular products, rather to point out some common unrealistic expectations of product performance.

Scenario One

Customer: "I am very disappointed with my sheets (XYZ product), I am seeing them begin to pill and fade, and I want my money back."

Me: "Oh I am so sorry to hear you are dissatisfied, let me pull your order up in my system so we can get your issue handled."

After a few moments of searching for the XYZ product in the order history, the manufacturer notices they purchased the item in January 2009.

Me: "I am looking in the account, and I see this was purchased in January 2009."

Customer: "That's right! I cannot believe how these things are showing wear, I am very disappointed with the quality. What can you do for me here?"

Me: "Well, how many times a week are these used?"

Customer: "4-5 times a week, we launder them often."

Me: "And just to confirm your usage of these items since 2009 is that correct?"

Customer: "Correct"

After some quick calculations, I came to the following conclusions:

107 weeks in usage
535 washings
535 clients
Original cost: $14.99
Cost Per Client Use: .03 cents per client

I shared this with the customer, and suddenly they saw things in a whole new light. Even cars depreciate after two and a half years. And they are not laundered every day! Suddenly, someone who was very disappointed with the product in the beginning was impressed with the same item, once they considered how much use it had provided. They purchased more sheets happily. They began to see the product replacement after due course of usage as a cost of doing business rather than a failure of manufacturing or supply.

Expecting items to last forever with daily and repeated usage is unrealistic. Just as people age, so do products. One way to see if you have actually received substantial benefit from your investment is to amortize the cost of your product across the number of clients seen since you purchased it.

Another thing to consider is timing. Consider this, you have bought an inflatable Christmas decoration from the Big Box Store down the street and have used it for the past two seasons. Now, in season three, it no longer inflates. But the likelihood of getting a replacement is really remote since it is three years since your purchase, and it might not occur to many to even try. It is accepted that things wear out, or can deteriorate with poor storage and lack of usage.

Scenario Two

A customer is opening up a new location, and has ordered various equipment from various manufacturers. The items arrived, but are not inspected before they are signed - stating they are in good condition. They are put into a room to store until the location opens, which may well be two or three months later. These items may need to be moved within a facility a couple of times before the facility is ready to open.

Nearer the opening date, the items are finally opened and it is found the item may be damaged due to shipping, the wrong color, or even non-functional. Obviously, this is a problem. However, because it was not inspected upon receipt, months have now gone by, and the opportunities to file any claims with the shipping company have long passed. Additionally, if the product is just simply the wrong color, or not what you expected, you will likely now have to pay the shipping back to the manufacturer and possibly pay a restocking fee. This is the best argument I can provide for taking the time to inspect your equipment upon arrival and ensure it is in working order. Once you have stored it for months, moved it from room to room, it is very hard to prove an item was improperly working from the start. Many manufacturers are now cracking down on this type of return.

A business owner/manager/director should be responsible to make sure the items arrive in-tact. If something looks amiss, the packaging is damaged, do not sign the paperwork that says everything is fine without notating on the delivery slip that there are problems with the packaging. Notating it can help the manufacturer file a claim and get your issue resolved far faster with this information, but you have to let the manufacturer know upon delivery. If too much time passes, it will be harder to get your issue resolved. Also, if you are buying equipment that must be assembled, a smart rule of thumb is to do it in the first 30 days following purchase. The reason for this is to be proactive and report any issues with your equipment in a timely fashion to the manufacturer or supplier you have utilized, and gain resolution proactively rather than a delayed report months down the line.

Making sure your business runs efficiently is in large part dependent on the products you utilize. Taking a moment to consider the information in this article can help you make sure your next expansion goes well with your equipment and product needs. They may also help you determine if there is a basis for complaining about performance or whether it may just be time to replace your goods. As with most suppliers and manufacturers, the whole reason we exist is to serve our customers.

I hope the scenarios I shared can provide you a behind-the-scenes glance of what may be entailed in a return and how you can help yourself (and the manufacturer) by notating and documenting issues, while considering the age and longevity of usage. No doubt your supplier will work hard to provide you the best service possible, and that is made far easier by utilizing these tips along the way!


Click here for more information about Angie Patrick.

 

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