While buying, we look at quality of the machine and after-sales service. This can be counter-checked from actual users. A visit to the manufacturer’s factory is a must. A tête-à-tête with the design / service team will go a long way in learning the strength and weakness of the manufacturer.

While considering capacity, stress should be on the quantum of rejections and the production loss due to frequency of machine breakdowns.

Now comes the affordability factor. Importance should be given to payback period rather than landed cost. The term ‘discount’ is a misnomer; it is another term for ‘price reduction’. Which honest manufacturer will do so unless he is facing dearth of orders due to the exorbitant price tag or technical inferiority?

e.g. A tube filler costs $ 100,000/-.

It produces 50,000 filled tubes / shift of 400 minutes. Three shifts will be 150,000 tubes. Suppose, the selling price of each tube is $ 2/-. With a profit margin of 10%, the income from the tube filler amounts to $ 60,000/- per day i.e. $ 9,000,000/- per annum of 300 working days.

Another tube filler costs $ 80,000/- but produces 40,000 tubes per shift i.e. 120,000 per day. The annual income will be $ 7,200,000/-. Out-put considered in both cases is at 90% efficiency during continuous operation.

Which machine is cheaper?

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