Is leasing more cost effective than purchasing? How expensive is it to rent gym equipment?
It’s no question that fitness centers are among the most effective startup businesses around simply because they’re designed to be local and build communities within the neighborhoods. It doesn’t matter what career you have or what job you go to; at the end of the day, so many people go the gym.
Plus, there are many different types of fitness that people utilize in their gym routines, from cardio to weightlifting to yoga and more. It’s convenient to have all of the equipment you could possibly need right there for you to use, and being able to work out with other people helps you with getting better with your own workout.
Fitness centers are easily some of the better businesses around when done right, but, like any other business, starting them up requires some knowledge in marketing and finance. Advertising your gym is important to raise awareness and gain customers, but the quality of your gym and the financial setup that makes your fitness center run is absolutely essential.
That’s why getting equipment is so important; you want the best equipment possible, and you want to pay a decent rate for it. Many business owners look into how expensive is it to rent gym equipment and compare it to purchasing rates to determine the best choice for their fitness center.
Purchasing your Own Gym Equipment
Of course, as a business owner you want to own everything with your company. It’s understandable to want to own all of your hardware, but purchasing is not always the viable option in many cases, especially as far as fitness hardware.
For instance, when your purchase heavy duty hardware, you do get the benefit of claiming the equipment as a business asset and get funding for it, but that’s not where the spending ends. Over time, all equipment breaks or at least goes down on quality, meaning you have to spend money on repairs or replacement.
As a newer business, you already spent so much money on your hardware, and you have to budget wisely over the next few years while your business gets on its feet financially. However, if you’re spending a great deal of your funds to purchase your gym equipment and then purchase it all over again within a few years, this can put your business in trouble financially.
This can be made worse if you get a loan, because the interest rate can be very crippling in your business depending on how much you loan out, no matter how small the interest rate is. If you have to pay to replace your equipment every few years after getting a loan, that means you stall paying off the loan that much longer.
How Expensive is it to Rent Gym Equipment?
There are quite a few advantages to leasing compared to purchasing your gym equipment, mainly in the sense that you avoid the downsides of owning hardware. Leasing equipment involves a flat, monthly rate you pay in exchange for the equipment loaned out to you.
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This means you don’t deal with an interest rate or an expensive, up front rate; low monthly rates are so much easier for businesses to manage, especially when they’re just starting. With leases, you don’t have to worry about getting your hardware repaired or replaced; if your hardware is damaged or stops working, your leasing vendor takes care of the issue for you.
Instead of paying a high rate to replace or repair the hardware temporarily, the leasing company takes care of it for you at a much more manageable rate. Plus, leasing offers you tax benefits, meaning you get money in your pocket every year come tax return time.
The trick to leasing is making sure you get the best deal possible because everything in a lease is a predetermined contract that you have to agree on to get the lease. If you get a bad lease, you had to agree to it first, meaning it’s best to know what’s best for your business as far as a lease.
Knowing how much you should be paying and what you should get out of your lease is important, but when it comes to how expensive is it to rent gym equipment, it varies as far as your lease but is generally very inexpensive.
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