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<blockquote data-quote="W. Mark Hellinger" data-source="post: 48698" data-attributes="member: 692">Re: When is it enough?I&#039;d say it really depends on your primary market.As a very rough rule of thumb, I&#039;ll suggest that your equipment inventory is capitalized at the diminished point of return when your in-house gear is covering approx. 80% of your market penetration, and you&#039;re subrenting/crossrenting, or referring the other 20%.Having said that, there&#039;s a lot of ways to consider what that means.It really all depends. I&#039;m aware of more than one (many) equipment inventory oriented business that&#039;s basically a support mechanism for GAS and lots of shop time. I&#039;m also aware of some (many) &quot;seemingly gear oriented business&#039; &quot; that don&#039;t actually own much more equipment than... oh... a coffee cup full of pens... and they stay seemingly very busy... and throw fairly impressive Christmas parties.</blockquote>

[QUOTE="W. Mark Hellinger, post: 48698, member: 692"] Re: When is it enough? I'd say it really depends on your primary market. As a very rough rule of thumb, I'll suggest that your equipment inventory is capitalized at the diminished point of return when your in-house gear is covering approx. 80% of your market penetration, and you're subrenting/crossrenting, or referring the other 20%. Having said that, there's a lot of ways to consider what that means. It really all depends. I'm aware of more than one (many) equipment inventory oriented business that's basically a support mechanism for GAS and lots of shop time. I'm also aware of some (many) "seemingly gear oriented business' " that don't actually own much more equipment than... oh... a coffee cup full of pens... and they stay seemingly very busy... and throw fairly impressive Christmas parties. [/QUOTE]

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