Your business has many options when it comes to providing your customers with the best quality and most efficient gym equipment.
The equipment that you provide is the very basis of your entire business model. The cost and return on investment have the biggest impact on the overall efficiency of your model as a whole. Obtaining the highest quality and most effective equipment at lower than market prices is at the very heart of a solid business plan.
At Used Gym Equipment, we offer the flexibility and solutions that best support your business plan. The foundation of the flexible solution is your option to purchase, to lease, or combine both. The dollar multiplier is the cost savings that comes with fully refurbished equipment.
Leasing fitness equipment allows you to deduct the payments from your income as an expense. Usually as an operating expense. The effect of the tax deduction is significantly lowering your total costs. At the same time, leasing offers a non-tax benefit because monthly payments are often low to preserve the cash flow for your business.
As for purchasing used gym equipment, the Tax Cuts and Jobs Act of 2018 significantly increased the maximum tax deduction for the purchase of most types of equipment from $500,000 to $1 million for businesses that spend less than $2.5 million per year on business equipment. There is also a first-year bonus depreciation deduction available for property placed into service from 2018 to 2022.
Opting to purchase or lease is a decision based on the unique needs of your business. A wise business solution could be purchasing free weights, benches, and fixed equipment, while leasing the equipment with moving parts that tend to have a higher maintenance cost as it ages. In both cases, commercial used gym equipment is the solution to overpriced new gym equipment that dramatically loses value the very first year.
The Long-Term Vision for Your Business
One thing that you can depend on in the fitness business is that your future equipment needs will be different from what you have today. But there is more to your business model than that. What are your long-term goals? Will you open multiple boutique gyms in strategic locations or is your intention to grow into a large, full-service facility?
If you are growing a large membership base, you need to provide not only the widest selection of equipment but also the right number of each piece of equipment. Both the equipment and quantity will change over time. Your ability to grow and be flexible depends on your operating costs just as much as income from growing membership. Our flexibility and cost advantages match well with your future needs for flexibility. At Used Gym Equipment, we strive to be your long-term business partner.
Commercial-grade exercise equipment is made to last. If it wasn’t, we would not be in business and certainly, we would not have lasted since 1989. Because of our quality and dedication, we have been helping customers put together incredible fitness facilities for over 30 years. Together, we make used gym equipment a win-win for everyone! For further information about our fitness equipment and/or services, please contact Used Gym Equipment at 310.638.4800 or visit www.UsedGymEquipment.com to learn more.