Discussing The Options
When it comes to determining whether renting or purchasing two-way radio equipment is right for your organization, there are a variety of factors to consider. Organizations that are anticipating increased activity in the coming years are already beginning to consider their infrastructure needs, including communications. However, in today’s unpredictable economy, the need to exercise caution is still strong. Given the current climate, is it better to rent or purchase your two-way radios?
The answer is: It Depends.
There are a variety of factors that should be carefully considered. While the market shows signs of uncertainty, many companies have been hesitant to purchase equipment outright as they don’t know what the future holds. However, firms still require effective communication tools to ensure jobs are being completed at peak efficiency.
Unfortunately, there is no single fit solution, as unique solutions are required for companies experiencing different circumstances. So let’s explore the options in more detail:
Renting Equipment
Many companies stick to rentals as they can simply flow the cost through to the contracted customer.
On short term projects this can make the most sense. On a straight rental the radio dealer maintains the unit, so the contractor avoids the expense of upkeep. Also if a piece of equipment breaks down, the dealer will fix it, and if the repair will take an extended amount of time, the dealer will usually exchange the broken unit for a different one.
Long term rentals however, are much more expensive than a purchase. Most often, on long term or annually repeating projects it makes more sense to purchase and negotiate with the service provider for a managed service contract.
Purchasing Equipment
Purchasing your equipment means they belong to you and your team. Our team can also set you up with a maintenance contract to track the health and life cycle of your radios. You will be able to schedule repairs online, speak with our service team regarding any technical questions, and receive valuable advice about best-practices with your two-way radios.
Buying equipment offers immediate ownership, and deductions for depreciation and interest can bring down a firm’s taxable income and save the company on its taxes. More often, a larger company will finance the purchase of a piece of equipment. The equipment is added to the balance sheet as an asset, and the debt is noted as a liability. If your company has a cash reserve it is often advantageous to buy these resources outright.
So what is the right choice?
Typically if a company is renting equipment for more than 9 to 12 months, they should closely examine the benefits of purchasing with their accounting department.
An experienced communications consultant can provide guidance on how to make the best decisions for your needs, budget and financial considerations. If you would like to learn more about this, and what options suit your specific needs best, contact our team for more information! We would be thrilled to devise a cost effective strategy for you going forward.
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