Buying vs Renting

BUYING VS RENTING

Sr.No.BUYINGRENTING
1While buying The proposed Racking Systems you Immediately have to Induce CapitalWhile Renting The proposed Racking Systems you can induce the capital in your working / manufacturing & pay a nominal amount to get the same Infrastructure as planned for Buying.
2When you buy the system the maintenance of the systems is completely in your scope , there is no Quarterly Audit of the supplied system and also NO training for your team on how to effectively operate the systemWhen you Rent the same system the maintenance becomes the scope of the renting company relieving you of the headache as we do a Quarterly Audit of the supplied system and also set up training for your team on how to effectively operate the system.
3Any Damages that occur will be a risk to the investment and also will incur additional cost to replace the damaged componentDamages are minimized since there is Quarterly Audit and also regular check up's done to ensure the right movement and method applied, also if any products are damaged then the replacement is immediate at no additional labor cost
4When buying the system it becomes important to identify and choose the right product components & buy them at the right price as all manufacturers have different designs / sizes and specificationsWhile Renting the systems we ensure to give you the right design & right product, since the product is ours we provide the best possible quality hence making your decision stress free & hassle free
5Every company calculates the ROI ( return on investment ) and in this case the company can calculate in the following manner •Calculate depreciation ( 10% P.a. under W.D.V which is accepted and allowed by our IT Dept. ( we have shared a brief illustration of depreciation calculation ) •Calculate and Amortize the cost of the system and adjust it in your profits ( by doing this your profits gets hit so normally people don’t use this method ) In both above methods the company either takes a hit in their profits by adjusting the amount or claims depreciation which takes more than 15 years to recover the induced costWhile Renting its extremely simple as the rent paid by the customer can be taken as expenditure in their P&L straight away and get all the money paid adjusted in the balance sheet . Note : while renting you do have a option of buying the racks at a depreciated value ( as per WDV ) , you also save on the cost of inflation while Buying the system at any point of time .
6When you buy the racking system you are restricted towards doing any kind of modification / changes in the design of the bought system since the product bought is yours. after sales service is at a regular cost .While renting you are free to expand / contract the storage systems designed & supplied without cuang your pockets since you are not restricted and you are not the owner of the product , all you have to do is contact us and tell us your changed in the supplied system and we shall do it for you . after sales service is FREE of cost when you rent the system .
7While buying you will have to rely on your team to plan the layout & design the desired system or you will have to rely on other companies to provide a correct solution for you and depending on their solution the costing keeps changing making your decision confusing , time consuming & expensiveWhile renting the system our team comes and CONSULTS-DESIGNS-EXECUTES the entire project understanding your needs and specifications & operating methods and also suggest the right product at the right price since we will be investing for you to store your product
6When you buy the racking system you are restricted towards doing any kind of modification / changes in the design of the bought system since the product bought is yours. after sales service is at a regular cost .While renting you are free to expand / contract the storage systems designed & supplied without cuang your pockets since you are not restricted and you are not the owner of the product , all you have to do is contact us and tell us your changed in the supplied system and we shall do it for you . after sales service is FREE of cost when you rent the system .
7While buying you will have to rely on your team to plan the layout & design the desired system or you will have to rely on other companies to provide a correct solution for you and depending on their solution the costing keeps changing making your decision confusing , time consuming & expensiveWhile renting the system our team comes and CONSULTS-DESIGNS-EXECUTES the entire project understanding your needs and specifications & operating methods and also suggest the right product at the right price since we will be investing for you to store your product
8Every organization are now going in a ASSET LIGHT rather than ASSET TIGHT MODEL Model in which companies / organizations are not ready to invest in heavy assets and block their capital, by buying the system you become ASSET TIGHT as you block a Big amount of capitalWhile Renting you follow a ASSET LIGHT MODEL in which you have no liability or concerns towards the supplied system and you may end the contract or extend the contract depending upon your business plans.
9When buying the racking system your expansion plans may get limited due to the limitations of allocated budget and hence slowing the process of your expansionWhile renting you can opt for expansion immediately since you are not inducing Huge Capital at any point and hence your business can grow faster
10While buying the racking system you are involving in a commercial relationship with the vendorWhen you rent the system our relation becomes more personal & we become a part of your business growth story and we act as one team throughout to ensure that at every step your product is stored correctly and effectively to achieve the highest level of efficiency and in turn succeed together .