It’s a tough question.

Earlier you determined the life expectancy for each item so you can be proactive in planning staffing and finances. But, when it’s due to be replaced, the question still comes up, “Do I REALLY need to replace it?”

The answer is not clear-cut. Here are some considerations for deciding to extend the life or not.

• Think about the cost of failure. Would you have additional costs because the repairs are not during regular working hours? Would there be significant damage if the item failed? Is the temporary loss of the use of the building a possibility? Example: commercial hot water heater catastrophically failing.
• Think about safety. Does the old item pose a safety risk? Does a newer model come with additional safety features? Example: buying a newer chain saw that has additional guards and safety features that the old chain saw doesn’t have.
• Think about your organization’s procedures. Do you have pre-determined schedules? Example: Maybe you rotate computers every four years and vehicles every 10 years. Both types of equipment will still be working, but for a wide variety of reasons, it’s been determined earlier when to cycle new pieces of equipment.
• Think about the effect on guests. Does the ‘older’ item affect the guest (either directly or indirectly with reputation and/or aesthetics)? Example: Does the individual lodging room’s heater/cooling unit provide responsive temperatures as needed? Does the unit look like it belongs in a salvage yard?
• Think about increased utility costs. Does the old unit draw more energy than the newer one? Example: Suppose you have an old household refrigerator for staff. Calculate how much electricity the old motor with inefficient seals is costing you.