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Contract Testing vs. Buying Your Own Test Machine
Orders are coming in faster than you ever imagined. That’s great BUT you still have to pass all of your testing requirements before a shipment goes out the door. You’ve hit a speed bump. No worries, you’ve overcome bigger obstacles than this.
You’ve got this! Take a deep breath and let's weigh the pros and cons… should you hire a contract testing service or buy your own test machine?
Contract Testing
Pros
Low Upfront Cost - If you know that you need to perform a one time test, contract testing may be the best option for you. The upfront cost is low because the contract lab already owns the machine and you are paying them to provide a service. They handle the setup, running the test, and provide you with the reports. You will need to analyze the results and make important decisions.
Cons
Long Setup Times - When you hire an outside company to provide a service, it takes some time to plan, coordinate and perform the service. They will need time to set up the system and specifications in order to meet your exact testing requirements.
Limited Testing Ability - Contract testing isn’t bad if you have a very common test but it’s not so good if yours is anything other than standard. Custom testing is possible with some contract testing labs but as you can imagine, it comes at a premium, and possibly a contract. The lab isn't going to purchase a new system just for you without a guarantee that it is worth their while and will quickly earn their money back. Custom testing can become very expensive very quickly.
Overtime The Cost Adds Up - Is your test something that you are going to re-test periodically for quality assurance? Are you wanting the flexibility to test a variety of samples? The cost could really start to add up after a while. It starts out as a tempting option because of the lower initial cost but it could easily become a money pit and leaving you wishing that you would have just bought your own machine.
And how about the extra fees? Some of the common ones are:
- Same day turn around or high priority rush jobs
- Special handling
- Return of samples
- Freight/customs
- Consulting fees
- Evaluation of test protocols
- Modifications
- And more!
Chances are that you don’t have a testing lab right across the street. It can get expensive shipping your samples and products to and from the warehouse.
The Dreaded Queue - You know what they say, time is money. Sure contract testing frees you and your staff up but how much time do you have to spend with the contract lab to make sure they are going to test your product correctly? You might begin to feel like it would have been faster to just do it yourself. And what if you miss a customer deadline?
If you are expecting to test the sample multiple times, anticipate more sample testing or hope to grow your business then buying new might be your best fit.
Buying Your Own Test Machine
Pros
Save Money Over Time - You need to take a look at your business goals. Are they long term goals or short term goals? Where do you see the company in 1 year, how about 5 years? 10 years? If your goal is to grow then buying a test machine may be in your best interest. Once you own the machine, you save money over time.
On-Demand Testing - You no longer have to wait to get on a schedule or wait for someone else. Need to run a test on a small batch of samples? You can! Want to do a quick quality test and report the results during the upcoming board meeting? No problem. You are in control.
Systems Designed to Meet Your Exact Requirements - Get a machine that is designed to your exact needs. Buying your own system provides freedom for future expansion. It’s your machines, you can design it the way you want it.
Testing Flexibility - Opens you up to a wider range of applications with a few tweaks of the machine/accessories. Quick change adapters make it faster than ever to switch between a wide variety of grips and fixtures designed to handle a wide variety of test samples. Need an environmental chamber? No problem! We have what you need to be successful, both now and in the future.
Tax Advantages - Did you know that you can deduct the entire purchase price of test equipment and software purchased during the tax year? With the Section 179 tax deduction, you can buy or finance qualifying equipment and deduct the full purchase price from your gross income, up to $1,000,000. That's right, you get to write off the entire equipment purchase price during the year you buy it. Learn more about the benefits of the section 179 tax deduction
Cons
Higher Upfront Cost - The initial investment is typically more than hiring a contract testing company. Some companies aren’t comfortable making the large investment upfront for a variety of reasons. In that case, contract testing may be the best option.
Trying to decide between contract testing or buying your own system? Let us help you decide which option is best for you. There are other options like used test machines, upgrading your existing system, and more! We will compare all the options with you so you can make an informed decision. Contact us!
