How to make a business case for new gear
Strong financial info is powerful, but it’s not all about the benjamins.
So, your favorite brand has a new camera out – and it won’t come cheap. What’s the best way to prove to the decision-makers in your company that it should be purchased?
Some managers are more interested in ROI and financial figures, while others are more interested in performance and user experience. To convince them all, you’ll have to prove – financially, and from the perspectives of the users – that the investment delivers value.
The money side
Compare purchase price vs. rental price, and calculate how many times you estimate needing the equipment per year.
Calculate depreciation; if a EUR 8k camera is “old” after 4 years, and renting it costs EUR 200 a day, you’ll have to use the camera 22 times over 4 years to justify renting vs. buying.
The people side
Get consensus from the bottom up by talking with the people who use the equipment. Figure out what they’re looking for in a piece of gear like this and what outcomes they value. Put their consensus down on “paper”.
Perform a test on the equipment; does it work as promised? Do your users like it? Is it easy to use? If the results are in favor of the purchase, collect detailed feedback from the team and put it into context for your manager or business decision-maker.
Should you buy or should you rent
Why you should buy
- Tax benefits for “fixed assets”
- Safely save presets and preferences
- Always available
- No transport needed
Why you shouldn’t buy
- Larger up-front investment
- You handle insurance, repair and storage
- You’re stuck with it for (its) life
Why you should rent
- Use awesome gear for cheap in the short term
- Quickly boost short-term capacity
- Insurance/maintenance included
- Flexible choices in equipment
Why you shouldn’t rent
- More expensive in the long term
- Can’t safely store presets
- Time wasted on transport
CHEQROOM makes business cases a walk in the park by centralizing all information about every single piece of gear – price, warranty, times used, etc. – in one place.
If you want to read the complete AV Q&A series, click here!