Tight post-lockdown budgets are no barrier to meeting peak demands
There’s still a degree of uncertainty about what the post-COVID trading world will bring. One thing which is certain is that many sectors – retail, warehousing and manufacturing amongst them – will have been hard hit by the prolonged lockdown and available budget through the initial ‘catch-up’ period will be modest at best.
With this in mind, it may be essential for many enterprises to investigate every option available to purchase the inventory they need to capitalise on the peak demands when they arise.
At PLM Global choice has always been important
We have always strived to offer a full range of options for our clients to ensure that we meet both their equipment needs and any capital restraints. That is why we offer both outright purchase and rental options, and why we have a repair and refurbish service as well as a buy-back, circular-economy offering.
We have been able to do this thanks to our truly global supply network (across 5 continents) and our belief in strong supplier collaboration. This means that our clients can always benefit from the best, most innovative technology but, more importantly in tough trading times, access it via a number of routes in order to minimise up-front investment.
Our solutions can be matched to internal budgeting options
Hand in hand with our range of acquisition options, there are two main choices as to how the business can cover the cost – either via their Capital Expenditure or Operational Expenditure budgets.
What is the difference between CapEx and OpEx when it comes to equipment purchase?
It’s essentially a matter of how the purchase can be viewed.
- Capital Expenditures (CapEx) are major purchases to be used in the future – examples include plant & equipment, building expansion/ improvements, hardware purchases and transport vehicles
- Operating Expenditures (OpEx) are day-to-day, operational costs of an operation – examples typically include rent, utilities, salaries & pension contributions, property tax and R&D
Interestingly however, Operating Expenditure can also include any cost associated with selling, general and administrative expense. Therefore, an item of equipment which might initially be thought of in terms of Capital Expenditure could be considered as Operating Expenditure if it were to be leased rather than purchased outright
Unlike CapEx, OpEx are fully tax deductible in the year they were made. During periods where cash flow is an issue, the ability to deduct the total cost of an item may be attractive – not to mention helpful – and allow the enterprise to obtain the systems needed to cope with demand even when finances are tight.
If you would like more help to assess your own options when it comes to hand-held capture devices, mobile print and EPoS hardware simply visit www.plm-global.co.uk