building computers and leasing them. Good or Bad?

[Jbcourt]

Would building computers and leasing them to customers (businesses) wail taking care of all the maintnace needs the equipment will need for the leases life time, be a good idea?
And maybe leasing all the networking equipment and any other IT equipment that they may need?

 

[@ncient geek]

Would building computers and leasing them to customers (businesses) wail taking care of all the maintenance needs the equipment will need for the leases life time, be a good idea?
And maybe leasing all the networking equipment and any other IT equipment that they may need?

The mean lifetime of leased equipment is 2 to 3 years, depending on the type of site you install the systems (metall production, wood working, car shops etc may even have smaller lifecycles). After three years the equipment is obsolete in any case and should be changed.

This means that you have to make your profit within the first 12 to 18 months in order to cover unforseen events.

(acquisition price + profit + taxes + maintenance + inflation)/15 months = leasing rate

Usually this calculation is workable if you end up with twice the price of the equipment + maintenance, which, after taxes, will leave you with approximately 50% benefit on the equipment + maintenance. That is pretty measly if you work this on a small scale, but may become acceptable on a larger scale. If you dont have the necessary funds, don't even bother.

 

[Fubs]

I think you're better off running this through a leasing company and signing them up for a service contract for the maintenance--the latter could be paid as part of the lease or directly to you. I find it easier this way because I get paid right away and the leasing company assumes all the risk.

I had a client who was a general contract who I sold about $10,000 worth of labor and equipment to through a leasing company. About less than a year later he closed up shop when the building boom collapsed. If I had assumed all the risk and leased directly to him, I would be eating a big loss. Even with a judgement, if the client doesn't have the money or makes it difficult, it would cost more than the $10,000 in legal fees and time to retrieve it.