A growing number of vending machine business owners today are considering leaving their vending company suppliers to purchase their own machines. This will enable them to reap 100 percent of their profits rather than only 10 percent. Typical profits on a vending machine equal approximately 50 percent of the cost of each product.
Most vendors will offer a 10 to 20 percent commission while they own the vending machines, restock them and repair them when needed. This arrangement satisfies many owners of vending machine businesses. Yet other savvy owners of these businesses are seeking greater flexibility and significantly greater profit shares. They much prefer to buy their own machine(s).
Pros and Cons of Renting vs. Buying Vending Machines
Key pros and cons of renting vs. buying vending machines for your business include the following:
• Greater profit margins for you as the owner of the vending machine;
• More flexibility in the product inventory pricing as an owner;
• Greater control over product selections when you own your machines; and
• Improved service as a machine owner.
• Money is needed up-front for purchasing a machine;
• You must arrange any necessary machine repairs as a machine owner; and
• As a vending machine owner, you must purchase product inventories and stock your machines.
For the majority of vending machine business owners, the greatest hindrance to owning their own machines is the initial cost. As a business owner, you can work with PayPal to buy a machine with no money down. You can then pay as much as six months later with 0.00 percent interest on approved credit.
The second primary obstacle to machine ownership is the potential of a machine breakdown or major malfunction. Most of these operating problems with machines are relatively easy to repair. If you own the machine, you can most likely repair it yourself quickly and efficiently. There should be no need to call your local vendor to fix the problem.
Should You Purchase a Used Vending Machine?
You may wonder if buying a used vending machine is a good alternative plan. It may be, although there are a few disadvantages to purchasing used models. The major problem is that you cannot determine the history and treatment of a used machine. Also, if its warranty has expired, you may need to make any initial required repairs yourself.
How Should You Choose a Vending Machine Supplier?
Some high-quality vending machine suppliers permit you to compare quotes from several authorized machine vendors and then make your choice. These vendors also offer lease agreements if you decide to keep a rental machine for long-term use. This enables you to enjoy all of the advantages of renting machines, including repairs when needed.
By consulting our experts at Gameking Total Vending Solutions with offices in Morisset, NSW, you can obtain excellent advice concerning the pros and cons of renting vs. buying machines for your vending machines business. Our experienced team serves clients throughout Australia and beyond.
They will guide you in making the ideal choice between renting and buying machines for your business. They will ensure that you are completely confident that you are making the very best decision for the ongoing success of your business.