When it comes to investing in salon equipment, leasing can be a good option for some salon owners. Leasing provides some flexibility when it comes to upgrading equipment, and rental contracts can often be negotiated to accommodate your needs. Almost any piece of hair salon equipment can be leased from a reputable supplier. Whether or not leasing is right for your business is determined by why you want to lease and whether or not you ever plan on owning your salon equipment outright.
The Benefits of Leasing Hairdressing Furniture
One of the biggest benefits of leasing is the ability to upgrade equipment at the end of the lease. This works out great for pieces that are consistently being updated, such as point of sale systems, spa equipment, and possibly even your computer technology. When your lease contract is up, you often have the option of reopening your lease with the upgraded equipment. This insures your salon always has top notch supplies and equipment.
Leasing can also help you save money when you first open a salon. Instead of having to heavily invest in brand new furniture, you can lease everything from hair salon chairs to beauty beds. If the supplier allows, you may even be able to negotiate a rent to own contract where you will own the furniture after a specified period of time and when payment is complete. This saves you from a large up front investment and allows you to start turning a profit a little sooner.
The Disadvantages of Leasing
Two main disadvantages of leasing are that you don’t own anything, which gives you little to no business equity should you want to sell the business, and you may end up having to pay for furniture you no longer use due to rental agreements.
When you own your salon furniture you are able to include it as part of the equity should you choose to sell your salon. When a realtor or financer does a valuation of the property, they won’t be able to include the worth of any leased equipment which can cause a huge reduction in the overall worth of your business.
Signing a lease agreement means that you agree to pay for the furniture for a certain period of time, regardless of whether or not you still use it. If you lease a massage table because you initially hire a massage therapist and then later decide to stop offering that service, you will still owe any due payments on the table.
Leasing is a personal choice for each salon owner. To insure you’re making the right choice, make sure you understand the terms of the lease agreement and know whether or not leasing will save you money or cost you money in the long run.