When you're running a business, your bottom line matters. Whether you rent or buy welding equipment can make a difference. How can you know which is more appropriate? Here are some pros and cons for owning your own equipment.
When You Should Buy Equipment
Buying equipment might be the right thing to do if your company uses welding equipment more than 60 to 70 percent of the time. Essentially, if you use your equipment most of the time, it's more affordable over time to buy it.
Also consider your capital. If you have the money available to purchase equipment and don't need to use that capital elsewhere, it's probably a safe purchase that will benefit you in the long term.
One of the most important reasons to purchase equipment is that it's ready to be used when you need it. If you have, for example, five welders at your company that use welding equipment five out of seven days of the week, then purchasing five sets of welding equipment might not be a bad idea.
When You Should Rent Equipment
While buying equipment has its pros, there are cons as well. For example, changing technology is a factor that can take some people by surprise. When you purchase equipment, you don't have the ability to upgrade all the time; with rentals, you simply rent the newest style of equipment, helping your productivity skyrocket.
Renting equipment is a good idea if you're not using equipment often or know exactly when it will be used. It's common for some businesses to have only one or two days a week, for example, where welding equipment would be needed for a few hours. If you can plan for when you need it, then renting equipment can be more affordable.
On the topic of affordability, remember that renting equipment keeps your capital free. Renting can be cheaper if you're not using equipment often, and without having to spend a lump sum on your own equipment, you have extra capital that you can use elsewhere, like in marketing or research. With that capital free, you have more choices as a businessperson, which can be hugely beneficial for those just starting out or with limited cash flow.
These are just a few of the pros and cons of owning or renting welding equipment. Only you know what will work best for your company, but utilization rates, your capital, and scheduling needs should influence the decision you make. Talk to a supplier, like Wayne Oxygen & Welding Supply Co Inc, for more help.