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Today's Flight to Quality

By: David Suzuki
Posted: October 26, 2009, from the November 2009 issue of Skin Inc. magazine.
stack of bills

page 2 of 7

Although technology will vary across the board, a general rule of thumb for large technology devices is a lifetime of three to five years amoritization, while handheld technology is between one to two years. This difference between the longevity of large and handheld technology is partially due to the quality of parts used; however, it is actually more relative to the wear and tear of the device itself. An example to consider could be that of a cell phone versus a television. Although they are both electronics, one will never leave its position or likely be moved while the other will be moved daily and as a result maintains a significantly higher exposure level to damage, wear and tear, loss and theft.

The numbers

A large technology with a life of five years at a cost of $5,000 would amortize to $1,000 per year, which can be calculated into your analysis.

$150 (Charge per technology service to the client)

- $5 (Cost of goods)

- $60 (Esthetician cost)