Typical laser rentals in Canada are between $500-750 per day depending on the market and device chosen. So let’s take a look at the pros and cons of both and why some business owners choose to rent over purchasing a laser.
Let’s take a closer look.
When making a business decision to whether to buy or rent, it is important to understand what your goals are. For example if you are an existing Spa or Medical practice and have some clients that are requesting treatments - rather than risk losing them to a competitor - you might consider renting a device one or two days to service that need. This limits the initial investment risk and makes excellent business sense if you only have few clients and your goal is not to grow your laser services.
One administrative challenge to keep in mind when renting a laser is scheduling.
You will have to schedule all your clients to adhere to your device availability and not
their convenience - this can create very awkward customer service issues.
Also keep in mind that your laser treatments have to earn $500-750 per day just to break even on the laser rental. This may not be a problem if your business earns enough through other products or treatments.
If you find that you are bringing in more laser treatment business than the few days you are renting, it would make good financial sense to then invest in purchasing a device as the monthly lease costs can be as low as a 2-day rental.
Although device technology is advancing in terms of simplified operation and more user-friendly interfaces, these advances are often incremental and the underlying treatment technologies have been in existence for years and in many cases even decades.
When renting a laser, the maintenance fee is included and the rental company is required to repair the laser, however a breakdown is inconvenient to your customers and should it happen after you have scheduled clients on the one or two days you expected the laser - this will be very frustrating for both you and your customers. Furthermore, rented lasers are more likely to malfunction because of excessive transportation, wear and tear and multiple operators.
Some claim that the device repair or upgrade costs are a factor in their decision - but typically, these costs amount to less than the amount it would cost to rent a device for 1 or 2 weeks (depending on the laser manufacturer rates) and that repair/upgrade cost would be spent sometime over the life of the device, which could easily last up to 10 years with proper care.
But, the best reason to purchase, rather than rent a laser is simply because your revenue will be substantially higher.
For example, if you choose to rent a device for 2 days and the rental cost is between $1000 to $1500, you only have two days to earn that amount before you show a profit (excluding other operational costs).
For the same amount of money each month, you can lease-to-own a device and you have 30 potential days to earn the same amount, making it much easier to create a very good revenue stream.
Lets break it down in a chart (see below):
Rental:
2 days $1250 rental cost
5 full lower leg hair removal treatments ($250 each) in a two day period,earning $1500
Profit = $0 (must earn $625 per day to pay for rental)
Purchase:
30 days $796 lease cost
5 full lower leg hair removal treatments ($250 each) in a two day period, earning $1500
Profit = $454 (earn just $41 per day to pay for lease-to-own)
AND there are still 28 days remaining to book treatments and earn a profit!
Lets recap: When deciding whether to rent or purchase laser equipment, consider your business goals. Are you providing laser services to expand your business or are you simply offering an additional service to your existing customers? The choice should be based on whether your revenue exceeds the cost of ownership. The Dermalase IPL should earn between $300,000 to $500,000 over a typical 5-year-term-lease.
And don’t forget that after the purchase of the device is complete, you have a physical asset that is still earning revenue and included in the value of your business assets.
Read this customer story of how Christina of Allure Laser earned $7500 her first month and $9000 her second with a Dermalase IPL
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If you want to learn more about the Dermalase IPL - the lowest priced, Health Canada approved Hair Removal and Skin Rejuvenation device manufactured and serviced in right here in Canada, including training and certification - just give us a call at 604-788-3413 to book your FREE demonstration.
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