T E S T I N G www.foodtechnology.co.nz 45 By Kevin Malpas Two hours later I had written a document called ‘Disrupt the Norm’, covering various ideas that our company could apply to help small businesses. However, this article is about one specific section of the document - the purchase of a new boiler and how small businesses can achieve this with minimal funds available, up-and-down cashflow and banks already having most of their assets tied up as security. Most businesses in New Zealand are staffed by less than five people, and those with small boilers normally (from our experience) have less than 20 staff. These are businesses that would see an investment in a new boiler beyond their annual investment capabilities, yet if they could service the investment they would surely see a return on the money spent. They could ensure high quality steam at a reliable delivery rate with no excessive downtime due to maintenance issues that occur with out-of-date controls, valves beyond repair and a pressure envelope that is now closer to 40 years old than 10. Major combustion controller OEMs are now suggesting to major businesses that they should replace controls on the burners after 10 years of continuous service, to ensure that they limit control failures resulting in major down-time for these businesses…an option not really available to small businesses. So how do you help these businesses? How does an airline afford the latest jets to keep pace with the industry; how does a logistics firm maintain a reliable fleet of trucks; and why do so many vehicles become available for sale after 100,000km? The answer is simple - they are leased. So why not make this option available to small businesses? I approached our boiler manufacturer and burner supplier, and they were both happy to come onboard with support to help us to offer new boilers on a lease agreement. As 70% of boilers in New Zealand are less than 1.2MW, we negotiated for the availability of two sizes of shell boiler for lease in New Zealand. As with other forms of lease, you need to ensure the product you are leasing is serviced regularly, payments are forthcoming and the boiler is available if (for some reason) the client’s reimbursement on your investment stops. A lease has its detractors, of course, but what the leasee gets is not only a lease boiler but chemical supply and testing, yearly servicing of the boiler, and reliability. We also offer to our clients the right to purchase if their position changes. Their up-front costs, therefore, include the removal of the old boiler, and replacement and pipe modifications (tax deductible in that year). From then on, they pay for a monthly investment which, at any time after two years, they can change from a lease to ownership of the boiler. By paying a monthly service fee, there is no one-off large annual survey bill or replacement cost of chemicals, and the lease of a boiler has no minimal depreciation deductions annually. If you’d like to see a new boiler working, come visit us at 110 Cryers Rd in East Tamaki or contact Julie in Auckland on 0274 595 399 or julie@absboiler.co.nz; or Kevin in Hamilton on 0272 298 647 or kmalpas@absboiler.co.nz. www.absboiler.co.nz
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