Smart management not cheap management

As business managers, we all care about reducing costs and maximizing profit, we look for ways to acquire assets at the lowest possible cost. One of my clients who I do consulting work for have the habit of buying used supplies including computers. He gives me a lot of work trying to fix his network that runs on old used computers. I asked him many times why he keeps buying old computers while by spending few hundreds extra dollars he can get himself new computers? He said “I run an insurance company and most of the time my staff uses the computers only to fill forms online, I don’t need new computers with extra features that I will never use.”

I understand his reasoning, but I also understand that old machines will keep breaking and his maintenance bill will keep going up.

This client has many offices that I do network and computer maintenance work for, so one day I told him “lets start buying new computers for one of your offices and see how this will reduce your maintenance cost”, he agreed and we got new computers for that particular office, and the results amazed him, his maintenance and network support calls for that office went to almost zero, and he was able to recover the cost of the new computers from the saving he made by not losing work hours due to network down time and not having to pay for network troubleshooting.

At my current consulting job, we have the same problem, some off brand computers that breaks every few days and not reliable web hosting company for our e-mail services. Now again, I am starting to clean up this company and show the management how they can save by investing in good equipment and reliable services, even if the cost is bit high, but it will pay-off later.