Is It Better to Rent or Buy a Vending Machine?

There are many decisions that you need to make when starting a vending machine business. You need to decide where to put up your machines and what items to sell. But one of the most important decisions you need to make early on is whether you are going to rent a vending machine or buy one outright.

Both options have their advantages and drawbacks. There is also no absolute right answer because it depends on your business strategy. Let’s take a look at the key differences between the two so that you can make the most suitable decision.

Renting versus Buying a Vending Machine – Which Is the Better Option?

Vending machines are not a cheap investment. For this reason, acquiring one is not something you should take lightly. Here are some of the most important considerations.

Pros and Cons of Renting a Vending Machine

Pros

• Smaller initial expense. Renting means you don’t have to shell out thousands of euros at the get-go. This makes it a very attractive option if you are on a tight budget.
• Good for a trial run. If you are not yet fully committed to the business and just want to try it out first, you can rent for a couple of months and see how it goes from there. You can then continue renting or opt to buy a machine of your own.
• Option to avail fully-managed services. Vending companies provide what is called a fully-managed service. This means they will take care of everything from installation and machine maintenance to restocking and monitoring.

Cons

• Continuous expense. You might be paying just a small amount but there will be no end to the spending. When renting, the machine will never be yours so you will continue paying for as long as you want to continue with the vending business.
• Vending company restrictions. Some vending companies will have rules when it comes to vending machine operation, even product selection. You need to abide by these rules if your machine is a rental.

Pros and Cons of Buying a Vending Machine

Pros

• One-time machine cost. An average vending machine might cost a couple thousand euros or more. But once you buy it, it’s yours. Unless you go for an installment plan, there will be no monthly payments to worry about.
• Bigger profit margin. Without the machine payments, your monthly overhead will be much smaller, which means you will be making a bigger profit.
• Full control over products. You get to decide what you want to sell without worrying about any restrictions set by a vending provider.

Cons

• All maintenance is on you. Since it is your machine and no one else’s, you need to manage it. Restocking products, collecting payments, and monitoring operations – these are just some of the tasks that you need to take care of.
• Repairs can be a hassle. Vending machines come with a warranty but sometimes, there are parts that are hard to find, or the service center might be far. As the owner, it is your job to arrange for a fast and efficient repair job.

Start Your Vending Machine Business Right

There is no right or wrong decision between buying and renting. What’s important is that your decision aligns with your own business goals. Whether you decide to buy or rent, Vending-Machines.ie can provide you with the best vending solution according to your specifications. Check out our range of exemplary offers, or call us to book a free consultation!