Cost Comparison: One of the Easiest Ways to Decide Whether or Not Buying is a Good Business Move
Renting test equipment is a good option for a business that rarely needs to test their devices. However, if a business is frequently renting test devices, it might be a better move to buy equipment. Cost comparison is often used as the deciding factor for buying a set of devices. Risk assessment isn’t always applicable to all types of businesses. If it doesn’t lead you to a decision, comparing costs is your next option.
To do this, you just have to determine how much it’ll cost you to rent equipment in a given period over the market value of the equipment. If, for example, you need to conduct Megger insulation test every 3 months, sum up the rental cost you’ll pay for a year and compare this to the market price of an insulation tester. You also have to consider the operating life of the equipment. If the equipment can last for 3 years, you can try and multiply your rental cost for five years and see which value ends up higher than the other. If the market value of the equipment is lower than the rental cost multiplied by the number of years the equipment can last, you may want to consider buying the tools.
Protec can help you decide on the right option for your business. We offer equipment for rent and also sell devices. Contact us for more information about our services and a list of equipment you can rent or buy.