Episode 34: The Hidden Costs of Cheap Air Compressors

Jason Reed

Alright, welcome back to The Big Dog Podcast! Let's cut through the noise and get real about compressed air. I’m Jason Reed, and as always, I’ve got Lisa Saunders with me. Today, we’re talking about something that trips up a lot of folks—those “can’t-miss” deals on air compressors. You know, the ones with the big red tags and the “buy one, get one” banners?

Lisa Saunders

Yeah, Jason, and I gotta say, it’s so tempting, right? You see that low sticker price and you think, “Hey, I’m saving the company a ton!” But here’s the kicker—what you pay up front is just a tiny slice of the real cost. According to industry and government research, the initial price is only about 12% of what you’ll spend over the compressor’s life. Electricity? That’s a whopping 76% of the total cost. So, if you’re just chasing the lowest price, you’re probably setting yourself up for a much bigger bill down the road.

Jason Reed

Exactly. And those “blue-light specials”—I mean, I remember those old commercials, but in our world, it’s more like, “Here’s a deal on something you don’t even need.” Maybe you need an oil-free compressor, or a two-stage unit for better efficiency, but the special is on a single-stage, basic model. If it doesn’t fit your application, you’re S-O-L. And then you’re stuck with a machine that’s not right for your plant, or you’re missing out on energy savings that could pay for a better unit in just a couple years.

Lisa Saunders

I almost made that mistake once, honestly. I was working with a client who was all in on this “deal” compressor. Looked great on paper—until we dug into the service fees. Suddenly, the math changed. The “cheap” compressor was gonna cost them way more over five years than a higher-quality, energy-efficient model. It’s like, you think you’re getting a bargain, but you’re just moving the costs around—and usually making them bigger.

Jason Reed

Yeah, and that’s why you gotta decide what you actually need before you even start shopping. Figure out the right type, the right size, the right features. Then, and only then, start looking at price. Otherwise, you’re just buying trouble. And, honestly, we’ve seen it over and over—folks get lured in by the sticker, but the real pain comes later, when the bills start piling up for power, maintenance, and downtime.

Lisa Saunders

And if you missed our episode on turning air into profit, we talked a lot about how the right system can actually save you money in the long run. So, don’t get blinded by the “deal”—look at the whole picture.

Lisa Saunders

So, let’s talk about the fine print—the “gotchas” that come with those bargain compressors. First up: service contracts. Some manufacturers basically give away the compressor, but then they lock you into these expensive service agreements. You’re paying monthly or yearly, and you have to use their service teams, which can get pricey fast. And don’t even get me started on the parts markup.

Jason Reed

Yeah, and it’s not just the contract itself. It’s the way they structure it. The initial cost comes out of your capital budget, but all those service fees and parts? That’s operating expenses, and it adds up. I always tell folks—ask for a five-year, line-by-line quote on every service item. Consumables, hard goods, oil, the whole lot. And compare the big-ticket repairs—like airends, motors, drives. That’s where the real money goes.

Lisa Saunders

And don’t forget about parts availability. I mean, it’s wild—some companies don’t even keep critical parts in the country. So, when your compressor goes down, you’re waiting weeks, sometimes months, for a replacement. Meanwhile, you’re renting a portable unit, burning through diesel, paying extra labor, and just bleeding money. Jason, didn’t you have a plant that got stuck in that exact situation?

Jason Reed

Oh, yeah. This one plant—big operation—had their airend fail. Turns out, the OEM didn’t have any in stock in the U.S. They had to ship it from overseas, and it took, I wanna say, almost three months. The plant had to rent a backup compressor the whole time, and the rental fees alone were brutal. Not to mention the lost production and all the headaches. That “cheap” compressor ended up being the most expensive decision they made that year.

Lisa Saunders

That’s why you gotta ask the tough questions up front. Where are the parts stocked? What’s the lead time? Can you get a commitment in writing? And, like you said, Jason, get that five-year quote so you know what you’re really signing up for. Otherwise, you’re just hoping for the best—and that’s not a strategy.

Jason Reed

And look, every manufacturer wants you to use their OEM parts, but some make it so expensive you’re tempted to cut corners. That’s a bad move. We’ve talked before about how using off-brand parts can wreck your system—fires, explosions, you name it. But the answer isn’t to gouge people on parts. It’s to make it cost-effective to do the right thing. That’s how you keep your system running and your costs down.

Jason Reed

Alright, let’s get into warranties and support—because this is where a lot of folks get tripped up. Some companies offer these “amazing” warranties, but if you read the fine print, there’s all kinds of loopholes. I’ve even heard of companies with warranty quotas—like, they’ll only pay out so much per month, and if you’re late to the party, you’re outta luck. That’s just… I mean, it’s not right.

Lisa Saunders

Yeah, and the length of the warranty doesn’t mean much if the company won’t actually honor it. You want to see the terms, in writing, and make sure you understand what’s covered, what’s not, and who’s actually going to do the work. And honestly, local support makes all the difference. If you’re stuck calling a corporate call center three states away, good luck getting someone out to your plant when you need them.

Jason Reed

That’s why I like the way Kaishan does it. They’ve got a lifetime airend warranty on their KRSP and KRSP2 compressors, and they back it up. But more importantly, you’re working with local, independent distributors—folks who know your business, who can get you parts fast, and who actually care if your system is down. No red tape, no waiting weeks for a tech to show up. Just real support, when you need it.

Lisa Saunders

And those local pros—they’re trained, they’ve got the tools, and they’re invested in your success. We’ve heard from customers who get same-day or next-day service, and that’s huge when you’re trying to keep production running. It’s not just about selling you a compressor—it’s about building a relationship and making sure you’re set up for the long haul.

Jason Reed

So, bottom line—don’t get blinded by the sticker price or the flashy warranty. Ask the hard questions. Who’s gonna service your unit? What’s actually covered? Where are the parts? And is the company gonna be there when you need them? If you do your homework, you’ll avoid the traps and get a system that actually works for you, not against you.

Lisa Saunders

That’s it for today’s episode. If you’ve got questions, or you’re looking at a “deal” that seems too good to be true, reach out—we’re always happy to help you sort through the details. Jason, always a pleasure.

Jason Reed

Same to you, Lisa. Thanks for tuning in, everybody. We’ll be back next time with more real talk on compressed air. Take care!

Lisa Saunders

See you next time on The Big Dog Podcast!