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The lifelong standard of renting vs. buying has always been in the favor of laying down the cash and making the purchase, if you have the money to spend of course. This is usually due to the mindset that buying something will pay off over time. In my business, the Audio Visual industry, more specifically, conferencing systems, the same is usually true. Unfortunately, purchasing equipment just isn't financially an option for most of us and we need to find reasonable alternatives to spend our money more wisely.
Currently the rental industry is thriving, whether we are talking about homes or AV equipment. Nobody is certain which way the economy is going to turn within the next few months or even years and the common consensus among Americans is to hold on to their cash. Doing so, the best way to get by for the time being is to rent.
On the contrary, even if the cash flow is low, there are still some occasions to buy. It is almost certain at some point the amount to continually rent will eventually equal the amount that the item would have originally cost in the first place. What needs to be determined is how often you will be renting and at what costs. An example being; conferencing systems will be used by some on a daily basis and others will use them on seldom occasions. If the annual cost of rental equals the total to invest, then invest. If the investment pays off much later down the road, it is safer to rent.
Renting provides two main benefits; the relief of stress for both financial obligation and maintenance troubles. Just as certain a purchase will pay off in the long run comes a certainty that maintenance will be required over time. Weather it is a simple fix or be sent for repair, you must have the time and the resources to either fix or resolve the problem. Renting relieves this concern and allows you to focus on the client and the quality of production. Expert support on the product can also me obtained by the rental company to provide that added layer of assurance.
The thing to remember is to not rush into any large purchases without certainty that it will pay off. Many AV production companies build too much overhead, too quickly without realizing the time it will take to pay off the original purchase and the maintenance required for upkeep of the merchandise. Mistakes like this will make or break a company's chances of survival in this economic downturn.
For most companies at this time, the best option is to rent equipment, especially with niche equipment, such as conference push-to-talk microphone systems. Short term spending in smaller increments is much easier to stomach than one large lump sum of money at one time. The assurance is in knowing this small investment will pay off in the short term while still maintaining positive earnings. This in turn will provide additional money allowing fewer setbacks such as employment cuts, less cutbacks on necessities and create a backbone for company growth.