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When Your Recliners Reach $0 Residual Value and the Equipment is Still in Great Shape

Let's Create a New Accounting Term for That:

Running on Empty

While finishing up a recent purchase of Adeen recliners, I found out that our customer uses a 7-year life to depreciate their medical seating. This was probably established when typical treatment recliners are used in a heavily utilized department pr procedure. When asked if the Adeen, with a 10-year warranty would be treated the same, the answer was, "Of course." I thought, then you'll have years of $0 value, sending more money to the bottom line. Somewhere in my head, I was hearing Jackson Browne singing, "Running on Empty," but in a good way.

We see Adeen chairs that have been in use since 2014. Like anything upholstered and in heavy use, typically the vinyl and the foam in the cushions need replacing. Because of the component design, replacing parts, like an arm cap, or seat cushion, is easy and inexpensive. Often, replacing an Adeen seat cushion will bring the chair back to its original comfort. The cost for replacements is less than the preventative maintenance and the replacement parts for traditional treatment recliners.

We expect that the Adeen recliners will be in clinics for years while carrying $0 book value, while running 100% in staff safety and patient comfort. That's Running on Empty. What do you think?

Should "Running on Empty" be used to describe useful life after $0 book value is reach?

  • 0%No! That's DUMB!

  • 0%Sure. Another attempt at some marketing garbage. Whatever

  • 0%Can we just hear more guitar driven classic rock?

  • 0%Yes. And we need to recognize managers who make good choices

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