How to Save Money When Buying Oil Immersed Transformer

Every business decision should involve some long-term thinking. Spending more for a quality product can end up being a more cost-effective decision in many cases. You probably know this is true for plenty of things, but what about transformers? Not all transformers are created equal. Some transformers can drain you financially, while higher-quality ones can help you save money over time.

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Transformer Life Cycle Analysis

When you’re price-comparison shopping, your first thought may be to look for the product that comes with the lowest price tag. However, experienced shoppers know there’s a lot of truth to the adage, “You get what you pay for.” This principle certainly holds true when it comes to transformers. Some transformers may seem like a great deal at first, but you’ll think differently if the transformer ends up costing you through inefficient operation or premature breakdowns.

If all you look at is the initial purchase price of transformers, you won’t get an accurate idea of how much they’ll cost over the course of their service life. That’s why you should consider a transformer’s life cycle cost, also called total owning cost. In addition to the initial purchase price, a transformer’s total owning cost includes ongoing operating and maintenance costs.

By factoring in these costs, you may find a transformer with a lower price tag will actually cost you more in the long run than a higher-quality option with a higher price tag. In addition to adding all the costs involved, you should divide these costs by the years the transformer is expected to last. This exercise will show just how much lower costs can be when you opt for a transformer with a longer life span.

Why Cheap Transformers Fail

We’ve observed three main issues that cause seemingly more affordable transformers to fail:

• Poor craftsmanship: Transformers that are made by assembly machines may end up with weaknesses that get missed and lead to issues, including total equipment failures.
• Low-quality materials: The quality of materials used in a transformer is also important. A manufacturer’s material of choice for insulation and wire can make or break a transformer’s longevity.
• Inferior design: The design — specifically, how the coils are wound around a transformer’s core — has a major effect on a transformer’s durability over time.

You can avoid these problems when you choose a higher-quality transformer created by expert craftspeople using only the best materials and designs. You’ll pay more for one of these transformers, but you can feel confident that your transformer will last longer and cost you less over time.

How Cheap Transformers Cost You Over Time

When you settle for a cheap transformer, you can expect to run into the issues above. These issues can force you to incur some serious costs that ultimately make the budget choice less cost-effective. There are some direct and indirect sources of cost to consider. The most notable direct costs include:

• Wasted energy: The Department of Energy (DOE) sets standards for what constitutes a highly efficient transformer. Transformers that don’t meet or exceed these standards are known to experience energy losses you could avoid with an efficient model, racking up higher operating costs over time. The DOE notes that while energy-efficient transformers tend to have a higher purchase price, they also tend to be more cost-effective long-term.
• Repairs: Transformers that are made with inferior materials or a lack of craftsmanship can also experience more problems that necessitate frequent repairs. The cost to repair a transformer depends on the issue it’s experiencing and the solution needed to fix it. Whatever the problem, these are costs you could avoid with a transformer that offers more dependable service.
• Replacements: Even more costly than repairs is the cost to replace a transformer that has reached the end of its productive service life. The expected life of transformers is often between 25 and 40 years, so it may surprise you if a transformer you bought just a decade ago seems beyond help. This scenario can occur when you get an unreliable product, especially if it’s poorly installed, landing you with the unexpected expense to get a new transformer.

These costs are likely enough reason to choose your transformer wisely, but the costs don’t stop there. There are also indirect costs you may have to deal with when a cheap transformer fails. This might include costs associated with:

• Unplanned downtime
• Damaged company reputation
• Regulatory fines
• Civil litigation

If you’re currently dealing with a failing transformer, an emergency replacement can help you keep indirect costs to a minimum by getting you back up and running quickly. In the end, that lower-cost transformer can prove to be more costly than you imagined.

Benefits of High-Quality Transformers

Spending more to purchase a high-quality transformer is a forward-thinking business decision. With a better transformer, some of the benefits you’ll enjoy include:

• Higher efficiency: With an energy-efficient transformer, you’ll experience lower energy losses, which means lower operating costs. This is also a more environmentally responsible choice, which is important for companies trying to minimize their environmental footprint.
• Increased reliability: Anyone who has driven an old car that requires frequent trips to the mechanic knows how great it feels to drive a vehicle that’s truly dependable and only needs basic preventive maintenance. The same principle applies with transformers. With a well-made transformer, you can count on it to work as it should without frequent, unplanned maintenance needs.
• Longer life span: One of the biggest benefits of a high-quality transformer is that it will last longer. This is a key part of what makes these transformers more cost-effective. Instead of spending another chunk of money to replace a transformer that failed too soon, that initial purchase price will get you more years of dependable service life.
• Lower costs overall: Lower operating and maintenance costs, plus all the indirect costs you avoid with fewer equipment breakdowns, add up to some substantial savings over time. You can also go a lot longer before replacing your transformer.

Get Transformers That Are Made to Last From ELSCO Transformers

When you want a transformer crafted with more than a century of expertise and an unending commitment to quality, trust ELSCO Transformers. Our medium-voltage dry type transformers are reliable and come with an industry-best warranty. Plus, we can repair transformers of any make or model. If you need a replacement transformer on a budget, we can help you find a cost-effective solution you can afford, possibly even a reconditioned or remanufactured transformer we’ve inspected and certified.

If you have questions about how we can help you with your transformer needs, call us at 800-232- or contact us online.

In a perfect world, mechanical breakdown wouldn’t happen. After all, every piece of mechanical infrastructure comes with significant costs, and it would be ideal if they could all last forever.

Unfortunately, breakdowns are very real, and the cost of transformer repairs and maintenance can be high. When it comes to transformers, a low-quality unit could potentially cost you millions in lost time and labor if it goes down. If your transformer fails, your entire operation comes to a screeching halt. The implications of that are costly at best and terrifying at worst. And to think, that failed transformer is something you paid for.

There are steps you can take to avoid a bad investment when it comes to your transformer. The first is to work with transformer experts that know what they’re talking about when it comes to transformer build and installation. The people behind the units at ELSCO Transformers are exactly the type of experienced experts that can guide you through the transformer buying process. When this happens, you might end up with an estimate that is higher than others you may have received. Our philosophy is that it’s better to invest in quality upfront to avoid a devastating failure later.

When comparing prices for a new transformer, it’s important to consider all the things you AREN’T paying for should you choose to go with a lower estimate. Here are just a few, and as you read on, ask yourself this: are you willing to gamble on your investment?

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What to Expect When You Buy a Cheap Transformer

Below are some things that won’t be included in the purchase price of a cheap transformer.

You’re NOT Paying for Quality Materials

Transformers are expensive. Period. If a company is offering you a “deal” on a transformer, it’s because they made it with inexpensive materials. After all, the transformer business is a business, just like yours, so no one is going to sell you a transformer that they’re not going to turn a profit on. If they’re able to offer you a low price, you can bet they got the lowest price for the parts inside the unit.

Cheaper materials are directly correlated to the likelihood that a transformer will fail. That’s why at ELSCO, we use only the best of the best: durable copper for our windings, 200°C insulation, and SG 200 fiberglass solid insulation for our molds and barriers. And that’s just the tip of the iceberg. If you want to know more about the quality materials inside of the units we build, give us a call. We’ll happily take you through, part by part.

You’re NOT Paying for Efficient Design

We understand the value of quality materials, but unlike other transformer companies, we design transformers to complement your entire infrastructure.

Our transformer designs consider the efficiency of the entire system. We determine this by individualized consults so that we can design a transformer that is exactly right for your needs. If you buy a cheaper transformer, you might pay less upfront, but you will suffer losses over time caused by trying to make a transformer work that isn’t a good fit for you. It would be like buying a pair of shoes that aren’t your size, just because they’re on sale — it just doesn’t make any sense.

Custom builds are the key to getting the most value out of a transformer. No matter what anyone tells you, transformers are not one-size-fits-all. Don’t pay for something that isn’t a good fit for you.

You’re NOT Paying for a Long Lifespan

So maybe you’ve found a transformer that you think might work for you, and it’s one of the cheapest estimates you’ve gotten. Are you prepared to pay that price again in ten years?

It’s incredibly possible that cheap transformers are built to fail. Companies are employing planned obsolescence more and more to stay afloat. At ELSCO, we’re old school. Our business depends on building relationships with customers who are thrilled with the quality and longevity of our products. We’re the go-to guys for contractors who want to install quality builds, and they come back to us again and again.

Our history proves that when you pay for an ELSCO transformer, you won’t have to buy another transformer for decades.

You’re NOT Paying for Build Expertise

ELSCO Transformers does transformers. We design them. We build them. We repair them. We don’t do anything else. We live and breathe transformers, day in and day out.

There are other companies that have expanded their offerings. They’ve chosen to cast a wide, shallow net. When you’re focused on manufacturing so many things, it’s impossible to give every type of product the attention to detail it needs to last.

ELSCO’s expertise is specialized and deeply rooted in decades of both lived and passed down experience. We’re confident in every unit that leaves our warehouse because we know that it was built by a team that puts together quality units every single day.

What You Will Be Paying for With a Cheap Transformer

While it might seem tempting to buy yourself a cheap transformer due to the upfront cost savings, you’ll likely end up paying for it in the long run. Cheap transformers will cost more due to maintenance and repairs as they age.

Some of the hidden costs of a low-quality transformer include:

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• Faster equipment deterioration and repurchase: Since you’ll need to buy a new transformer sooner, the overall value of the initial purchase is drastically reduced. You’re getting less bang for your buck.
• Downtime: An unexpected transformer failure can cause extensive downtime as you work to replace or repair it, cutting into profits, interrupting service and putting excessive strain on generators.
• Costs of labor and supplies for repairs and installations: Of course, a transformer failure will cost a pretty penny to fix, but a transformer replacement will come with further costs associated with the installation and removal of the old one.
• Increased maintenance demands: Transformers should be reliable, but if failure is in sight, you’ll need to spend more time and money on providing excessive maintenance.
• Safety: If your failing transformers pose a safety risk, there could be a lot more on the line than money. Neverthless, minimizing risk can also minimize workers’ compensation claims.

Contact ELSCO for High-Quality Transformers