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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.
The rental period plays a vital role in this decision. The extent of demand of the machine will determine whether to buy or rent. It is ideal for one to buy equipment that is going to be used for a considerably long time. This is logical because such machine will certainly pay itself. However, when it comes to devices that are demanded on a contract or season basis, be sure to select the rental option.
It is also necessary to compare the upfront costs against monthly payments. The method of acquiring a medical device is dictated by your financial muscles at the instant. For businesses with low cash at hand, but having continuous cash flow, renting becomes the best option. Making monthly payments will leave the enterprise with some operating cash. However, for a firm with ample cash at hand, buying is the ideal and cheapest option. The monthly remittances vary from one dealer to another.
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 number of times the device is used, forms a significant part of your interest. In the medical arena, the tools vary in the extent of use. While there are those that are used more commonly, some are rarely used. The frequency of usage must thus be put in mind before deciding whether to rent or buy a device. A firm implement can only be bought when it is used regularly.
Whether to buy or rent an implement is also influenced by the resale value. The medical field is one of the most rapidly changing professions in terms of technology. New machines come with new features, rendering the current ones obsolete and ineffective. This calls for continuous upgrading of the facility, which may mean selling the old machine. Having equipment with good resale value facilitates obtaining a new one at a better rate. A machine with low resale value will be hard to sell.
However, the question of whether to buy or rent also depends on who you are asking. The decision is subjective. Both options have their own advantages and shortcomings. The decision process relies on trading between the negatives and the positives. A strategic decision can be reached at by referring to the circumstances of the firm at a given time.
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.
The rental period plays a vital role in this decision. The extent of demand of the machine will determine whether to buy or rent. It is ideal for one to buy equipment that is going to be used for a considerably long time. This is logical because such machine will certainly pay itself. However, when it comes to devices that are demanded on a contract or season basis, be sure to select the rental option.
It is also necessary to compare the upfront costs against monthly payments. The method of acquiring a medical device is dictated by your financial muscles at the instant. For businesses with low cash at hand, but having continuous cash flow, renting becomes the best option. Making monthly payments will leave the enterprise with some operating cash. However, for a firm with ample cash at hand, buying is the ideal and cheapest option. The monthly remittances vary from one dealer to another.
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 number of times the device is used, forms a significant part of your interest. In the medical arena, the tools vary in the extent of use. While there are those that are used more commonly, some are rarely used. The frequency of usage must thus be put in mind before deciding whether to rent or buy a device. A firm implement can only be bought when it is used regularly.
Whether to buy or rent an implement is also influenced by the resale value. The medical field is one of the most rapidly changing professions in terms of technology. New machines come with new features, rendering the current ones obsolete and ineffective. This calls for continuous upgrading of the facility, which may mean selling the old machine. Having equipment with good resale value facilitates obtaining a new one at a better rate. A machine with low resale value will be hard to sell.
However, the question of whether to buy or rent also depends on who you are asking. The decision is subjective. Both options have their own advantages and shortcomings. The decision process relies on trading between the negatives and the positives. A strategic decision can be reached at by referring to the circumstances of the firm at a given time.
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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