End users are increasingly focused on the initial cost of acquiring equipment. This Acquisition Cost is only the beginning point for evaluating the true cost of capital equipment purchases. Using software programs and information you provide us, our material handling professionals are able to determine your Cost of Operation. Add in the Acquisition Costs and we can determine the true Cost of Ownership of your equipment.

Evaluate All Costs

Acquisition costs constitute only 10-15% of the total resources spent on a capital forklift purchase. The remaining 85-90% of costs are realized after the initial purchase. These costs are known as Real Costs and can be broken down into Fixed Costs and Variable Costs.

• Fixed Costs include forklift operator wages and insurance and benefits and may account for 35-40% of a company's resources devoted to equipment ownership.
• Variable Costs include maintenance and repair costs, fuel, downtime (loss of use) and the cost of rental equipment that may be required to avoid lost productivity. Variable Costs may represent 45-55% of ownership costs.

Reduce Costs

Purchasers should consider the impact that Acquisition, Fixed and Variable Costs may have on the overall cost of ownership. Fixed Costs are hard to reduce without impacting productivity, (i.e. removing a forklift from service reduces costs but also reduces productivity). Because Variable Costs account for a larger portion of ownership costs than do Acquisition Costs, its clear that forklift owners/purchasers can more effectively reduce cost by purchasing a forklift that is of better quality, more reliable, requires fewer repairs (and thus uses fewer replacement parts), consumes less fuel and increases productivity.

When purchasing a lift truck, look beyond the quoted price and consider the quality of the products and the dealership backing the equipment. In the long run, a lower quality truck is sure to be more costly over its useful life.

Hull Lift Truck and Toyota Material Handling are confident that the features, benefits and quality that are the trademark of Toyota forklifts will yield a very real reduction in the Variable Costs associated with owning and operating a forklift and can substantially offset the up-front savings from purchasing a lower quality truck. Contact Hull Lift Truck to learn more about Toyota’s latest line of quality lift trucks and Hull's innovative maintenance programs.