Let’s talk usership versus ownership
The way we think about ownership is changing, and many B2C industries are already adapting accordingly. So why shouldn’t we? Especially when use is subjected to fluctuations that are becoming harder and harder to predict.
Clearly, the time has come for a more comprehensive, flexible cost-effective and measurable solution. One that gives you back control over your operations and your capital.
"Goodbye ownership. Hello usership!"
Wondering whether usership is relevant for your business?
"Goodbye ownership. Hello usership!"
Wondering whether usership is relevant for your business?
The true value of ownership is use
More and more companies are making the shift from “owning” to “using”. The concept of usership touches on many different, often complex factors. Therefore, the independent European Rental Association and the Solvay Brussels School of Economics and Management developed an objective and transparent method of calculating the total cost of usership of any given piece of equipment. The criteria go beyond the financials alone and include such factors as support services, sustainability, logistics and access to expertise.
Are you considering all aspects before making an investment in new equipment?
There are many factors that determine the respective advantages of renting and buying. For each organization, the “crossroads” at which they intersect will be different. But overall, the equation revolves around three main parameters.
1. Percentage of utilization
If there is even a small chance that the equipment you are thinking of purchasing will not be in operation 100% of the time, it is essential to look at the total cost of usership. Our experience has shown that once the rate of utilization drops to 40% or lower, the flexibility afforded by renting makes it the overwhelming favorite. Allowing you to increase capacity for recurring or emergency peak shaving and decrease it in response to both foreseen and unforeseeable downturns in production.
2. Cost of utilization
When most people think about operating or utilization costs, they think about repairs and maintenance, and the cost of parts and labor. But what about things like electricity or fuel consumption, installation time, ease of operation? Not to mention the issue of reliability and the indirect costs of potential downtime! All of these costs go up as your machine gets older. And the potential cost savings of newer, more efficient technologies can only be booked as a missed opportunity.
3. Agility of utilization
Flexible decision making is an important part of an agile organization. One that is capable of adapting to market changes efficiently and effectively. Renting essential equipment typically involves much shorter validation procedures with fewer stakeholders. Thus lowering the barriers to financial decision-making and saving valuable time throughout the whole process. And we’re sure we don’t need to tell anyone that time is money.
Of course, renting and buying need not necessarily be mutually exclusive. A combination of both is quite common and, in many circumstances, to be recommended. By renting a proportion of your base and/or reserve capacity, you retain maximum control while sharing the liability during peak production and adding an extra buffer of reliability to your operations. All with the added peace of mind that your machine park – the means with which you create value as a business – is in the hands of trustworthy specialists.
Usership in action: how other companies optimized their balance sheets through usership.
Utjevning av pålastningstopper under innhøstingssesongen
Hvis du er i næringsmiddelindustrien, vet du godt hvor kritisk timing kan være. Alt må være ferskt. Og når det er tid for innhøsting er det bare å gi bånn gass! Men hva med resten av året, når dampgeneratorene, dampkjelene, mate- og avblåsningstanker osv., som du normalt bruker til sterilisering og/eller forvelling, ikke brukes og forvitrer? Når bruken er sesongbetont, er det mye bedre å leie enn å eie.
Modulær kraftanlegg for et bryggeri i full vekst
Den potensielle kunden vår, et industrielt bryggeri, hadde en stor beslutning å ta. Alternativ 1: Vente i tre år på at det lokale strømnettet ble oppgradert, slik at det nylig ferdigstilte glassverket kunne starte opp. Alternativ 2: kjøpe de fire 1 MW generatorene de trengte for å starte opp anlegget umiddelbart. Alternativ 3: Leie strømgeneratorer i stedet. Alternativ 1 var ikke et alternativ i det hele tatt! Og en innledende mulighetsstudie talte for kjøp fremfor leie. Men selv om denne studien tok hensyn til alle mulige faktorer, fra kapitalutgifter og servicekontrakt til indirekte kostnader, avskrivninger og administrasjonskostnader, var det basert på en åpenbar antagelse: en utnyttelsesgrad på 100 %. Virkeligheten viste seg imidlertid å være en helt annen historie!