Variable vs Fixed Expenses

Variable and fixed expenses are things that every company deals with. Variable expenses fluctuate from month to month whereas fixed expenses are the ones that remain consistent. As an example, things like gas/water/electric bills, paying contractors, and even marketing costs can all be considered variable expenses. On the other hand, more consistent expenses, such as loan payments, insurance premiums, or machinery purchases are all fixed costs.

Today we want to talk about a variable expense: renting equipment. Heading into a new project, potential and excitement is extremely high. However, it’s difficult to judge exactly what you’ll need to maximize that potential until a few months in. From the time you place your order on a new machine, it can be two to three months before the equipment is in production in your plant. In another two to three months, you’ll know a lot more about your project. With Frain, you have four to six months to decide whether you want to keep the equipment, lease the equipment, buy different equipment, convert the equipment to purchase, or return it with no penalty.

Have you always shrugged off renting as a waste of money? To be honest, renting done right can save you thousands of dollars in the long run. Trust the experts at Frain to walk you through all of the options you have. Start your project immediately while simultaneously taking your time in finding the right machine for you.