Is fitness equipment leasing a good business decision? Starting or owning your own fitness business can bring many challenging decisions. One of the decisions you’ll face as a business owner is leasing your fitness equipment versus buying it. Here are some factors to be considered when deciding which option is best for your business.
Fitness Equipment Leasing
With leasing you may end up paying more for your equipment purchase. Oftentimes with leasing, after your initial deposit, interest and monthly payments, you may end up spending more than if you would have purchased the equipment.
On the other hand, due to purchasing power, many times a leasing company will be able to get a better deal on the equipment than a small business could.
Another factor to consider when weighing the option of leasing fitness equipment is that you will be locked into monthly payments over an extended period of time. This is not a problem if you are seeing a healthy return from your equipment leasing investment. But, if your business is suffering from poor marketing and client loyalty- the monthly leasing payment will begin to feel like a milestone wrapped around your neck.
That’s why it’s critical that you have clearly mapped out both your long-term goals and your estimated return on investment from leasing the equipment. Additionally, you should set a monthly budget that you feel comfortable with paying and will not put your livelihood in jeopardy.
Furthermore, with leasing you don’t own the equipment. Often you may be allowed to purchase it at the end of the agreement. Yes, owning the fitness equipment would be considered an asset for your business. But, on the downside, you will be the one responsible to maintain and repair the equipment. Not to mention in many cases owning outdated equipment may be more of a liability due to a very low resale value.
One of the biggest pros that people currently leasing cite is the fact that since they don’t own the equipment, they are able to upgrade to the latest and cutting-edge fitness equipment once their lease is complete. Customers enjoy what they perceive as a state-of-the-art fitness facility and having the latest exercise equipment goes a long way towards establishing that fact.
The bottom line is this: when considering leasing or buying equipment, it is best to look at the individual needs of your business. There is no cookie-cutter solution.