When it comes to vending machines, people are often torn between entering into a rental agreement with a vending machine provider or buying the machine outright. A vending machine is a very important investment and renting is the only viable option for some businesses. But, if you have the money to buy a machine or can secure financing to get one, it would be wise to look into buying one as well. Let’s take a look at the pros and cons of both options and see which one would be better suited for you.
The Pros and Cons of Renting a Vending Machine
The biggest and most obvious benefit of renting a vending machine is that you don’t have to put the money up for it. You can expect to pay anywhere from £3,900 to £5,500 to buy a new vending machine, if not more, if you need something more sophisticated like a sandwich and snack machine. The other great thing about renting a vending machine is that you won’t have to worry about stocking it. Most vendors will offer to stock the machine themselves, so that’s one less cost to think about.
The only issue is that these vendors will take a significant cut of your sales for their service. Most people will have around a 50% profit margin on the products they sell, and some vending machine companies will ask as much as 20% from your sales. So, you can see how this can start to eat into your profits. Some people will still prefer to rent a vending machine because they don’t have to think about it too much. They won’t have to worry about repairs either as the company renting the machine will take care of them.
The Pros and Cons of Buying a Vending Machine
The biggest benefit of buying a vending machine is that you’ll get to keep more of the profits. This is good if you intend to put some proprietary products in your machine or have a good deal on merchandise. You’ll be able to stock anything you want and won’t have to be stuck with the vendor’s product selection.
Having to supply the machine yourself is also one of the biggest drawbacks of buying one, however. Keeping inventory can get tricky, especially if you have multiple items with limited shelf times. You might experience some losses and waste until you find what works and what doesn’t. You might not even know if your employees needed a vending machine in the first place. Not to mention that you’ll have to deal with all repairs yourself and pay for the machine upfront.
What About Buying a Used Machine?
You might also be wondering if buying a used machine is a good idea. It could be, but it has a few drawbacks as well. The biggest one is that you can never truly tell what kind of history the machine has, and, if the warranty is expired, you might have to perform repairs yourself. That’s if the machine is even salvageable.
If you want to save some money but still own your machine, this vending machine supplier allows you to compare quotes from multiple authorized vendors at once and pick the best one. They also have lease offers if you want to keep the machine for a long time and get all the benefits of renting one.
At the end of the day, only you can tell whether buying or renting is better for you and your business. Take the time to evaluate both options before you make a decision and only go with a reputable supplier.