leasing in industrial marketing

8/8/2019 Leasing in Industrial Marketing

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LEASING

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LEASING

LESSELESSOR


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LEASE VS PURCHASE

To conserve capital

Tax benefits

Latest products


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LEASING

Leasing is a medium-term financial instrument for theprocurement of machinery,

equipment, vehicles, and/or properties.Leasingprovides financing of assetsequipment,

vehiclesrather than direct capital.Leasing institutions(lessors)banks, leasing

companies, insurance companies, equipment producersor suppliers, and nonbank

financial institutionspurchase the equipment, usuallyas selected by the lessee,

providing the equipment for a set period of time tobusinesses.


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CONTD..

Leasing is based on the proposition that profits

are earned through the use of assets,rather

than from their ownership.

This is why leasing is particularly advantageous

for new, small and medium-size businesses

that do not have a lengthy credit history or a

significant asset base for collateral


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OPERATING LEASE

Operating leases (or rent) can be equally

important in the long term

Operating leases are equivalent to rental. Operating lease-An asset for lessee


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capital lease

(a) if the lease life exceeds75% of the life of the asset

(b) if there is a transfer ofownership to the lessee atthe end of the lease term

(c) if there is an option to

purchase the asset at a"bargain price" at the end

of the lease term.

(d) if the present value ofthe lease payments,

discounted at anappropriate discount rate,

exceeds 90% of the fairmarket value of the asset.


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FINANCIAL LEASE

A finance lease-Contract to retain the

ownership from lessee

A finance lease- Full payout lease


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. Financial lease

(full payment)

Operating lease

(rental)

Non-cancellable

Long-term

Fully amortised

Cancellable

Short-term

Not fully amortised

Economic ownership with all

corresponding rights and

responsibilities are borne by

the lessor

The goal of the lessee is usage

of the leased asset for a specific

temporary need. for short term for asset

The lessor retains legal ownership for

the duration of the lease term

It is not the lessees intention to

acquire the asset, and lease payments

are determined accordingly.


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LEASING INDUSTRY GLOBALLY


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Reliance Industries takes a Deep Water Drill

Ship for lease.

Bihar to hand over two sugar industries onlease

Ryam in Darbhanga and Sakri in Madhubani

to a private entrepreneur on lease for 60years.

Tirhut Industries is Delhi-based firm


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COMPANIES PROVIDING FINANCIAL AND

EQUIPMENT SOLUTIONS

Media

Automotive &Parts

Chemicals &Plastics

Construction

CorporateAviation

Food & Agribusiness

Healthcare

Manufacturing


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SOME OF THE FINANCIAL SOLUTION

PROVIDERS


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PRICING STRATEGY

Pricing Product

Place Promotion


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FACTORS AFFECTING PRICING

STRATEGY

Company Objectives and Strategies

Competition

Cost Nature of Derived Demand

Legal Considerations


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PRICING STRATEGY

Pricing strategy can follow :

Decide lease rate to favor leasing

Decide to favor outright purchase

Achieve balance betn lease and sale

rate


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SUMMARY

Factorsinfluencing

ricingo jective

Demandanalysis

Break evenanalysis

Skimming

strategy

Cost analysis

Competitiveanalysis

Governmentregulations


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leasing in industrial marketing

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