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    Prasad Vashirde
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    This document discusses the role of leasing in industrial marketing. It defines leasing as a medium-term financial instrument for procuring equipment or properties, where a leasing institution purchases the asset and allows a business to use it for a set period of time. There are two main types of leases: operating leases, which are equivalent to renting assets on a short-term basis, and capital/finance leases, where economic ownership is transferred to the lessee. The document outlines factors affecting leasing pricing strategies, such as objectives, costs, competition and demand analysis. It also lists several global industries and financial companies involved in the leasing business.

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    This document discusses the role of leasing in industrial marketing. It defines leasing as a medium-term financial instrument for procuring equipment or properties, where a leasing institution purchases the asset and allows a business to use it for a set period of time. There are two main types of leases: operating leases, which are equivalent to renting assets on a short-term basis, and capital/finance leases, where economic ownership is transferred to the lessee. The document outlines factors affecting leasing pricing strategies, such as objectives, costs, competition and demand analysis. It also lists several global industries and financial companies involved in the leasing business.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    51 views21 pages

    Leasing in Industrial Marketing

    Uploaded by

    Prasad Vashirde
    This document discusses the role of leasing in industrial marketing. It defines leasing as a medium-term financial instrument for procuring equipment or properties, where a leasing institution purchases the asset and allows a business to use it for a set period of time. There are two main types of leases: operating leases, which are equivalent to renting assets on a short-term basis, and capital/finance leases, where economic ownership is transferred to the lessee. The document outlines factors affecting leasing pricing strategies, such as objectives, costs, competition and demand analysis. It also lists several global industries and financial companies involved in the leasing business.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 21

    ROLE OF LEASING IN INDUSTRIAL

    MARKETING
    LEASING

    LEA
    SING

    LES
    SOR

    LES
    SE
    .
    LEASE VS PURCHASE

     To conserve capital

     Tax benefits

     Latest products
    .
    .
    LEASING
     Leasing is a medium-term financial instrument for the
    procurement of machinery,
     equipment, vehicles, and/or properties. Leasing provides
    financing of assets—equipment,
     vehicles—rather than direct capital. Leasing institutions (lessors)
    —banks, leasing
     companies, insurance companies, equipment producers or
    suppliers, and nonbank
     financial institutions—purchase the equipment, usually as selected
    by the lessee,
     providing the equipment for a set period of time to businesses.
    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
    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
    capital lease

    (a) if the lease life exceeds 75% of the life of the asset

    (b) if there is a transfer of ownership to the lessee at the 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 of the lease payments, discounted at an appropriate discount rate, exceeds 90% of the
    fair market value of the asset.
    FINANCIAL LEASE

     A finance lease-Contract to retain the


    ownership from lessee
     A finance lease- Full payout lease
    . Financial lease Operating lease
    (full payment) (rental)
    Non-cancellable Cancellable
    Long-term Short-term
    Fully amortised Not fully amortised

    Economic ownership with all The goal of the lessee is usage


    corresponding rights and of the leased asset for a specific
    responsibilities are borne by temporary need. for short term for asset
    the lessor

    The lessor retains legal ownership for the It is not the lessee’s intention to
    duration of the lease term acquire the asset, and lease payments
    are determined accordingly.
    LEASING INDUSTRY GLOBALLY
    .

     Reliance Industries takes a Deep Water Drill


    Ship for lease.
     Bihar to hand over two sugar industries on
    lease
      Ryam in Darbhanga and Sakri in Madhubani
    — to a private entrepreneur on lease for 60
    years. 
     Tirhut Industries is Delhi-based firm
    COMPANIES PROVIDING FINANCIAL AND
    EQUIPMENT SOLUTIONS

    Media
    Manufactur
    ing
    Automotive
    & Parts

    Healthcare

    Chemicals
    & Plastics

    Food & Agri


    business
    Constructio
    Corporate n
    Aviation
    SOME OF THE FINANCIAL SOLUTION PROVIDERS
    PRICING STRATEGY

    Pricing Product

    Place Promotion
    FACTORS AFFECTING PRICING STRATEGY
     Company Objectives and Strategies
     Competition
     Cost
     Nature of Derived Demand
     Legal Considerations
    PRICING STRATEGY
     Pricing strategy can follow :

    Decide lease rate to favor leasing

    Decide to favor outright purchase

    Achieve balance bet’n lease and sale rate


    SUMMARY
    Factors
    Government
    influencing
    regulations
    regulations
    Pricing
    objective
    Competiti
    ve analysis
    Demand
    analysis
    Cost
    analysis
    Break even
    Skimmin analysis
    g strategy
    .
    .

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