Module 2: Buy vs. Rent — Which is Right?

💳 Module 2: Buy vs. Rent — Which is Right?

• Buying (CapEx):

  • Advantages (ownership, long-term savings, asset value)

  • Disadvantages (high upfront cost, depreciation, service not included)

• Renting (OpEx):

  • Advantages (low upfront, flexibility, bundled service)

  • Disadvantages (long-term costs, asset remains with provider)

• Real-life customer profiles: Government tender vs. startup clinic vs. school

🔹 Buying (CapEx: Capital Expenditure)

Advantages:

• Ownership of the Asset: Once purchased, the equipment is yours, contributing to company assets.

• Long-Term Savings: No recurring rental fees. Useful if machine usage is high and sustained.

• Depreciation Benefits: Equipment can be depreciated annually, providing potential tax advantages.

• Better Control: Full authority over how it’s used, stored, and serviced (depending on service agreement).

Disadvantages:

• High Upfront Cost: Requires large initial investment (often requires board approval, especially in public or government companies).

• Depreciation Risk: Equipment value drops over time and may become obsolete.

• Service Not Included: You may still need to negotiate FSMA or T&M for ongoing maintenance, adding to cost.

🔹 Renting (OpEx: Operating Expenditure)

Advantages:

• Low Upfront Investment: Ideal for startups, clinics, schools, or businesses with budget constraints.

• Flexibility: Upgrade or return at end of term. Scalable with business growth.

• Bundled Service: FSMA model often includes toner, drum, and service — no need for separate approvals or stock.

Disadvantages:

• Higher Long-Term Cost: Monthly rental fees may accumulate more than purchase price over many years.

• Asset Not Yours: Cannot claim depreciation or list it under company assets.

• Termination Clauses: Exiting early may require penalties or restrictions.

🔍 Real-Life Customer Profiles

▶️ Suggested YouTube Video Title

“Should You Buy or Rent Office Equipment? | Pros & Cons Explained”

(Animated explainer with examples of hospitals, clinics, schools)

[🎥 Recommended: ~4-6 min duration with local language subtitles]

❓FAQ (x5) – Dual Language Format

1. When is buying a machine recommended? | စက်ကို ဝယ်ယူသင့်သည့်အချိန်က ဘယ်တော့လဲ။

→ When usage is high and budget allows CapEx | အသုံးအများကြီးရှိပြီး ရင်းနှီးမြှုပ်နှံမှုစိတ်ဖြတ်နိုင်သောအချိန်။

2. What is the benefit of renting for small clinics? | အသေးစားဆေးခန်းများအတွက် ငှားရမ်းခြင်း၏ အကျိုးကျေးဇူး။

→ Lower upfront costs and bundled service | စတင်ရန်ကုန်ကျစရိတ်နည်းပြီး ဝန်ဆောင်မှုပါဝင်သည်။

3. What does FSMA bundle typically include? | FSMA ၏ ပုံမှန်ပါဝင်မှုများမှာဘာတွေလဲ။

→ Toner, drum, spare parts, and service visits | တိုနာ၊ ဒရမ်၊ အပိုပစ္စည်းနှင့် ဝန်ဆောင်မှုလာပေးမှု။

4. Why is renting considered OpEx? | ငှားခြင်းကို Operating Expense (OpEx) ဆိုသည့်အကြောင်း။

→ Because it is paid monthly and not capitalized | လစဉ်ပေးသည့် စရိတ်ဖြစ်၍ ရင်းနှီးမြှုပ်နှံမှုမဟုတ်ပါ။

5. What is a major risk of not using FSMA with purchased machines? | ဝယ်ထားသည့်စက်များအတွက် FSMA မသုံးခြင်း၏ အန္တရာယ်။

→ May forget service or use low-quality parts | ဝန်ဆောင်မှုလျစ်လျူရှုခြင်းနှင့် တန်ဖိုးနည်းပစ္စည်းအသုံးပြုမှုဖြစ်နိုင်သည်။

🧾 CapEx vs OpEx – English (Myanmar)

1. CapEx (Capital Expenditure) – Long-term investment in assets like buildings, equipment, or technology.
    CapEx (Capital Expenditure) – ရင်းနှီးမြှုပ်နှံမှုကုန်ကျစရိတ် (အဆောက်အအုံ၊ စက်ကိရိယာ၊ နည်းပညာစနစ်များအတွက် ရေရှည်အကျိုးရှိသော ကုန်ကျစရိတ်)

2. OpEx (Operating Expenditure) – Day-to-day running costs like salaries, rent, utilities.
    OpEx (Operating Expenditure) – လည်ပတ်မှုကုန်ကျစရိတ် (ဝန်ထမ်းလစာ၊ အငှား၊ မီးဖိုမီးဖွားစရိတ် စသဖြင့် နေ့စဉ်လုပ်ငန်းအတွက် ကုန်ကျစရိတ်)

📊 Key Differences (အဓိက ကွာခြားချက်များ)