Posts Tagged ‘business plans’

Cheaper: Buying or Leasing?

Friday, February 21st, 2020

For most newcomers to the vending business, the pressing question is what is a more profitable way to start? Buy vending machine or take it out? In addition, for the novice natural desire to hedge, not putting too much at once a lot of money. In this article we will discuss the pros and cons of the options proposed. 1) Rental of vending machines. Currently, manufacturers and suppliers of commercial equipment offered to try it by renting to certain period of time. For example, at 6-10 months. If the tenant is satisfied with vendors, he must redeem them.

But is it profitable for such a decision? Room rental vendors will be directly related to the cost of equipment, statistical average payback period, monthly income, the demand. Will not focus on the amount of rent payments, we note only that the lease price cheap vending machine (with maturity payback of approximately 6 months) will be equal to 1/8-1/10 of its value. Actually giving half their earnings, the tenant still will own the machines until they redeem the vendors, that is not pay their full value. Rental of commercial equipment is beneficial only if the tenant does not absolutely sure how it would go to a business, or if the machines he needed for a short period of time. For example, at the time of any summer open-air festival, which will be valid vending refrigerated beverages.

2) Leasing. Leases or finance leases – a type of lease under which the lessor undertakes to acquire property specified by the lessee of certain property of the manufacturer or seller and give the tenant the property for payment for temporary possession and use for business purposes. Purchase in this case finance lending institution to which the entrepreneur makes payments .Takim way, usually to buy expensive equipment in large quantities, and for a beginner it is quite standard solution. 3) Purchase. Most newcomers to the market of commercial equipment, confident in the success of new business, start a business is to purchase 5.2 machines. That’s enough to get basic knowledge. Nevertheless, after Six months after the start of operation of the machine will start to generate profits. Also, do not worry about downtime for one reason or another, since the entrepreneur is absolutely free of rent or debt to the bank.