The market for medical equipment is marred with a lot of diversity in terms of quality and price. This, coupled with the drastic decrease in profit margins, has led to profound concern world over. Considering the high initial cost of investment and the level of sophistication of the machines required, practicing medical service is one of the most expensive ventures. However, some practitioners have sorted to renting medical equipment in an effort to cut on the investment. This demands some requisite knowledge on buy versus rent decision, as outlined below.
To begin with, it is worth considering the rental period. Before ordering the equipment, consider the rental period. As a general rule, an equipment that will be in use for a long time is better bought than rented. However, where the device is needed for a short period of time, it is more convenient and economical to rent. The time value of money falls into play when evaluating between a buy and rent options.
Also, make a close comparison between monthly payments and upfront costs. Buying a medical machine requires a high cash outlay that may be unhealthy to small and infant firms. Such firms are better served by rental devices, which permit monthly payments. For well established firms with large cash outlay, a purchase decision is the most suitable.
The cost of maintaining the equipment also falls into play. For most rental agreements, the responsibility of repairing and maintaining the device remains with the rental company. For such deals, you are relieved of the burden of having to repair and maintain the same. However, for purchase decisions, you are solely responsible for the maintenance. This task can be very expensive and demanding. As such, always analyze the cost of servicing and repairing the machine and opt to rent it where the expenditure is not justifiable.
The other vital factor of concern is the frequency of use. While some medical tools are used on more often, others are required on rare occasions. In case you require specific gadget frequently, it is recommended to invest in it. This is particularly due to the fact that such machines will soon pay themselves off, making the investment valuable. Those that are used on rare occasions are better rented.
In addition, the amount to be realized from the sale of the gadget also matters. Before upgrading to modern facilities, the old facility has to be sold to pave way and contribute to the financing. A good buy deal should have a reasonable amount as resale value. Selling a system with low resale value is difficult and even expensive.
Nevertheless, be sure to opt for nothing less than convenience. Both methods have different implications to different practitioners. While renting is fast and friendly to the flow of cash, buying brings with it a sense of freedom and peace of mind. With rental agreement, you can access advanced equipment that may not be possible to buy.
Simply put, be thorough in your analysis and use the requisite information in reaching the decision. A well informed decision will, out of doubt, be an asset to your business.
To begin with, it is worth considering the rental period. Before ordering the equipment, consider the rental period. As a general rule, an equipment that will be in use for a long time is better bought than rented. However, where the device is needed for a short period of time, it is more convenient and economical to rent. The time value of money falls into play when evaluating between a buy and rent options.
Also, make a close comparison between monthly payments and upfront costs. Buying a medical machine requires a high cash outlay that may be unhealthy to small and infant firms. Such firms are better served by rental devices, which permit monthly payments. For well established firms with large cash outlay, a purchase decision is the most suitable.
The cost of maintaining the equipment also falls into play. For most rental agreements, the responsibility of repairing and maintaining the device remains with the rental company. For such deals, you are relieved of the burden of having to repair and maintain the same. However, for purchase decisions, you are solely responsible for the maintenance. This task can be very expensive and demanding. As such, always analyze the cost of servicing and repairing the machine and opt to rent it where the expenditure is not justifiable.
The other vital factor of concern is the frequency of use. While some medical tools are used on more often, others are required on rare occasions. In case you require specific gadget frequently, it is recommended to invest in it. This is particularly due to the fact that such machines will soon pay themselves off, making the investment valuable. Those that are used on rare occasions are better rented.
In addition, the amount to be realized from the sale of the gadget also matters. Before upgrading to modern facilities, the old facility has to be sold to pave way and contribute to the financing. A good buy deal should have a reasonable amount as resale value. Selling a system with low resale value is difficult and even expensive.
Nevertheless, be sure to opt for nothing less than convenience. Both methods have different implications to different practitioners. While renting is fast and friendly to the flow of cash, buying brings with it a sense of freedom and peace of mind. With rental agreement, you can access advanced equipment that may not be possible to buy.
Simply put, be thorough in your analysis and use the requisite information in reaching the decision. A well informed decision will, out of doubt, be an asset to your business.
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Get an overview of the advantages of renting medical equipment and more information about a reputable medical equipment rental company at http://www.kenquestrentals.com now.
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