Return of investment: Why should business be thinking about this when choosing rental chairs?

Rental businesses or venues have difficulties choosing equipment. It depends on a diversity of variables we're about to explain for you to choose wisely.

Purchasing materials, equipment and products is always something one ought to perform in a very careful way. The SeatCo will tell you all about ROI, which is a very useful instrument when taking wise and educated decisions. Let’s dissect this! 

Different Aspects.

There’s a diversity of things our business has to think about to make an enterprise work like an oiled machinery. Most of them, one would think, should have to do with lowering our costs to the minimum to maximize the return or profit. But… oh surprise! This is a huge mistake, actually, lowering costs via cheaper labor, raw materials or equipment is --and always will be--, the worst scenario for your company. 

Why?

In the long term cheap = expensive. On the other hand, any quality service, labor, material or piece of equipment will generate a long term profit.. trust us… a very  beautiful one, actually!

By now you’re probably wondering…

How do they know?

Well… it all has to do with ROI or, for an easier understanding: Return of Investment. What does this mean? This means that, by applying a very easy formula, you’ll see the numbers change like magic right before your eyes. 

A crystal clear example, please!

Well, there’s no better example than our own chairs. Let us elaborate: 

rROIC stands for Rental Return on Invested Capital and it´s gaining interest in the rental industry, as a calculation to keep in mind when making equipment purchasing decisions.

A simple way to calculate rROIC is through this equation:

rROIC = (Rental Rate x Utilization) – (Maintenance + Repair Costs) / (Acquisition Cost – Residual Value)

Here you can compare the ROI between our Aluminum Chiavari Chairs compared to the ROI of Resin Chiavari Chairs and Wooden Chiavari Chairs. These numbers were verified by actual customers.

Here’s another example: 

Regarding the use of Steel, for instance, the investment you’ll make is just the very best choice. Here, as you’ll be able to compare, is the same situation when we talk about economical chairs. 

Equipment as capital.

The latter being said, now you probably understand why the equipment you choose is profitable, when thought about as an investment that, through the passing of time, will be more than just an uneducated purchase, but one of the most intelligent steps your company can give.

Take a look:

Keep tuned…

...for more “business healing” information. 

The SeatCo has chairs like no other!