Buying or leasing: exploring the advantages of each
Warehouse storage needs change pretty fast, and it is not uncommon to need extra space bang in the middle of a season. The two most feasible options for most people normally is either lease or buy.
Leasing versus buying
Leasing keeps the materials used up to date. The reason many warehouses have old machinery is the amount of investment involved in procuring a new machine. The leasing option means the issue of equipment age is another person’s problem. For instance, after a two year lease on a piece of equipment, the warehouse will be free to lease another more effective up to date version. This freedom endures maximum effectiveness in the workplace. When you buy, however, the outlook is completely different. The upfront cost is huge, but it is a one-time deal, and there is no obligation to keep buying new. This is especially true when one buys quality equipment like the 3st-ex3060-2as-95 storage cabinet.
Another benefit of the leasing process is the predictability of the monthly expenditure. When equipment is hired, most of the liability is covered by the company that leased the machinery. In case of breakdown, for instance, the repair job becomes the responsibility of the leasing company. All that is left for the warehouse is the monthly fee. Equipment purchase, on the other hand, offers the gift of freedom. You get to use the equipment as you wish, and can even hive it out during periods when the traffic is low.
Leasing also has significant downsides. Before making the decision to either lease or buy, think about such things as the lease duration, and the total amounts that will go into paying for the lease. This should ideally be compared to the amounts needed for an upfront payment when buying. Sometimes the long term leasing costs might be higher than the upfront payment, which makes many of the financial advantages of leasing obsolete. Also, purchasing only works when the equipment bought is of a high quality.
There is no wrong or right decision here, every company as its own unique circumstances that will influence the decision.