Renting vs. Buying a Cryotherapy Machine

Both modes of acquisition could work, but which one should you go with? Here&#;s a quick overview of buying and renting out a cryotherapy machine. 

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Pros of Renting Cryotherapy Equipment

Keeps up With Technology Changes

As technology advances in the health and wellness industry, old models of cryotherapy machines are becoming obsolete. There are newer and more effective ways to perform the service with better models of the machines.

Renting a cryotherapy machine for a short duration of time means that you can adapt to the technological changes by renting the new models. You can easily upgrade your machines every few months, differentiating you from your competitors.

Low Periodic Payments

Buying a new cryotherapy machine requires a significant capital outlay. This is difficult to manage, especially for first-time investors in the industry.

Renting the machine, however, provides a cheap and sustainable alternative for new businesses that do not have enough cash flow to purchase the machine.

No Commitment to Keep the Machines

There is no commitment to keep the cryotherapy machines past the expiry of the rent periods. New businesses without a clear business vision can rent the equipment, try it out, and return them if the cryo business model does not work.

Pros of Buying the Cryotherapy Machine

Lower Cost in the Long-Run

The initial cost outlay of buying a cryotherapy machine is high, but there are no subsequent charges. Leasing or renting the machine requires periodic payments that will over time accumulate to more than its purchase price.

Ownership of the Equipment

Buying the machine transfers all the ownership rights to you. You are free to use it without any third party's control. This also guarantees that you get all the machine's profits since you don't have to pay any rental or leasing fees.

Tax Advantages

Favorable tax laws such as Section 179 deduction¹ give a tax advantage to those that purchase cryotherapy equipment over those that lease or rent the machines. 

These advantages make purchasing the equipment even more economical in the long-run.

Should You Buy or Rent a Cryotherapy Machine?

Getting a cryotherapy machine for your business can be financed in various ways, including buying, leasing, and renting the equipment. Buying a new cryotherapy machine is the most capital intensive of the three, but it also gives the buyer the most control over the machine. 

Rejuvelab supply professional and honest service.

On the other hand, renting the machine requires the least capital outlay to start with but gives the renter the least control.

It is generally recommended that you should buy the equipment only if you use it to generate 60%-70% of your business.² You should then rent the equipment if you are generating less than 60% of the business revenue from cryotherapy.

Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.

1. IRS issues guidance on Section 179 expenses and Section 168(g) depreciation under Tax Cuts and Jobs Act - https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act 

2. 15 ADVANTAGES TO RENTING EQUIPMENT VERSUS OWNING IT- https://www.holtca.com/company/news/renting-equipment-versus-owning

NOTICE: Information contained within this website and in all materials, communications, or presentations by Cryo Innovations and Cryo Recovery Lounge is for informational purposes only.  Whole Body Cryotherapy, infrared sauna, hyperbaric chamber, and any and all recovery methods described and/or offered by Cryo Recovery Lounge or Cryo Innovations are neither designed nor advised for treatment or cure of any illness or disease.  No cryotherapy chambers (including the XR) have been tested or approved by the FDA.  Please consult with your medical professional before beginning any cryotherapy or recovery method.  All material contained within this site is copyrighted and may not be reproduced in any form without prior written permission. All rights reserved. For permissions contact Cryo Innovations.

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