When it comes to buying office furniture, the price is a major factor that influences the decision-making process. While the upfront cost of new furniture can be daunting, the hidden gem in the world of office fit-outs lies in the value of depreciation, particularly in used office furniture. But what does depreciation really mean, and how does it benefit your business? Let's dive in.
Depreciation: An Overview
Depreciation refers to the decrease in the value of an asset over time due to factors like wear and tear, age, or obsolescence. In the context of office furniture, as soon as a brand-new chair or desk leaves the showroom, its value starts to depreciate significantly.
The Benefit of Buying Depreciated Assets
The most apparent benefit of buying used or depreciated office furniture is the cost savings. High-quality, pre-owned furniture is typically sold at a fraction of its original price, saving your business anywhere from 30% to 70%. This is particularly true for designer or high-end pieces that are built to last and thus retain their functionality and appeal even after use.
Depreciation and Resale Value
If you decide to sell your used office furniture in the future, you're likely to recoup a larger proportion of your investment compared to selling new furniture. This is because the used furniture has already undergone its most significant period of depreciation. For example, a chair that initially cost £1,000 might depreciate to £600 in the first year. If you buy the chair for £600 and sell it for £500 after a year, you've only lost £100. On the other hand, if you had bought the chair new for £1,000 and sold it for £500 after two years, you would lose £500.
Depreciation and Sustainability
Beyond the financial benefits, buying depreciated or used office furniture also promotes sustainability. Each piece of used furniture that finds a new home is one less item ending up in a landfill, and one less new item being produced, reducing your company's environmental impact.
In conclusion, understanding and leveraging depreciation can yield significant financial and environmental benefits for your business. By opting for used office furniture, you're not only making a savvy financial move but also contributing to a more sustainable economy. So next time you're in the market for office furniture, consider the valuable world of depreciation in used pieces – it might just be the smartest move for your business.