To buy vending machines or rent that is the question!
It is no news that with cashless and automatic vending machines your business can thrive in the US$ 55 Billion vending machine industry. With a mobile inventory, backend data that evolves with your consumer, product-specific customisation and brand labelling, smart vending solutions can give your retail business a positive push.
But, many businesses keep circling around when it comes to the price of vending machines and are in a dilemma of whether to buy or rent a vending machine.
Unravel this conundrum with us.
Buy vs Rent a Vending Machine: A road not taken
A smart vending machine will turn out to be an efficient and future-proof business investment in India. And with the growth of the phygital environment, micro-marketing is becoming a need for every retail business. The consumer expects a contactless, immersive and quicker retail experience, which is effortlessly provided by smart vending machine solutions.
As a business, now is the time to evaluate the pros and cons of renting a vending machine vs buying one.
Buy a vending machine
As mentioned, investing in smart and cashless vending machine solutions will help you establish your business strongly in the upcoming phygital spaces. With over 750 million smartphone users alone in India, owning a cashless vending machine will only enhance the benefits you reap.
Find out all the pros and cons of buying a vending machine:
Pros of buying a vending machine
1. Low investments and ownership of profit:
Most businesses demand high investments, but you can buy a vending machine equipped with the best vending machine software for an average amount of ₹1 lakh to ₹10 lakhs, depending upon its size, private labelling and product-specific customisation.
Buying a vending machine comes with all ownership of the machine and all the profits. Without the periodic deduction of rent, you can further use the earned margin for more efficient business development activities.
With Vendekin’s cashless and smart vending solutions, you start earning profit anywhere between 18 to 36 months. This depends on the product, business strategy, location, the discount provided, etc.
2. More flexibility
Another benefit of buying an automatic vending machine comes as flexibility in product selection, inventory stocking and even pricing. When you rent a vending machine, your choices are limited by what is available with your nearest dealers. This limits the choice of the products you can vend, as different product categories might require different customisations to a vending machine.
Additionally, when it comes to restocking, you need not depend on individual service providers or other supply chains that may turn out to be unreliable in the long run.
3. Better quality of service
Providing cashless and quicker transactions to your consumer is one among multiple reasons your business requires an automatic vending machine. And when you buy vending machines there is a higher chance that you would invest in a brand-new machine with the best vending machine software. In relation to this, the performance and service provided will be way better than a previously used rented machine.
Cons of buying a vending machine
With the whole and sole ownership of vending machines comes the responsibility for their timely maintenance, repair, cleaning and restocking.
With Vendekin’s smart and cashless vending machine, you get free vending machine repairs and fixes for the first year as a part of our warranty.
Rent a vending machine
For many local businesses, the up-front cost of buying a vending machine is the biggest concern before venturing into the vending business. Hence they prefer to rent vending machines instead of buying them. Explore the advantages of renting an automatic vending machine below:
Pros of renting a vending machine
1. Lower Up-Front Cost
The most significant advantage of obtaining a vending machine on rent is that you would have made a minimal investment. The average rental cost starts from around ₹5,000 per month and can go up to ₹15,000. This effectively eliminates the intensity of expenses by cutting the sum cost over smaller periods of time.
This will however depend on the location, product type and size of the automatic vending machine along with the quality of vending machine software it is equipped with. In simple maths, you would have paid over 3-5 lakh in around three years depending on what is available to your nearest vending machine operator.
2. No expense over restocking or maintenance
It is natural that when you rent a smart vending machine the responsibility of restocking, regular maintenance, care and proper functioning of the machine is on the vending machine operators. When you rent a vending machine, these expenses are generally covered by the service provider as mentioned in the rental agreement over a monthly service charge. In most cases, the vendors will offer to stock the vending machine themselves depending on the product type.
You save a significant sum by reducing the cost of maintenance and cleaning when you rent vending machines over a period of time.
Cons of renting a vending machine
1. Reduced and slow profit rate
When you rent a cashless and automatic vending machine, you save money and resources over maintenance, but the rental cost systematically gets reduced from the profit margin. This may also slow down the rate at which your business grows. Further, with increasing vending machine demand, the rent may increase with time and eat into your profits
2. No ownership and less flexibility
When you own a smart vending machine you have the liberty to make necessary customisation to it as per the product you want to sell. But this is not always possible for businesses that rent a vending machine. This takes away the flexibility of business decisions.
Renting a smart vending machine means entering an agreed contract for a long period of time. However, when you buy a vending machine its operations can remain flexible with your business strategy. You may use or not use the machine in a desirable location or move it to any other location as per your will and not feel stuck with the machine for the remaining period in one location.
3. Impact on consumer experience
Out of all possibilities, few businesses may opt to rent a used/ old vending machine. In such a case, the vending machine may have already lived through its usability life cycle. This may impact its performance and the consumer experience. Though such is not the case when you rent a vending machine via reliable vending machine operators.
How can Vendekin help?
These were the pros and cons of renting or buying a vending machine. Now the question is, does Vendekin rent machines with its smart vending machine software?
We at Vendekin provide the technological solutions that make your vending machine smart and future-ready. However, with the aim of keeping our client's needs above all, we help by sourcing the most suitable vending machine from vending machine suppliers in India on some form of a rent arrangement.
Whether you decide to buy a brand-new cashless and automatic vending machine powered by our smart vending machine software, vNetra or an old vending machine that is transformed with our smart RetroBox technology, Vendekin is there to support you.
Why take your business ahead with Vendekin?
When it comes to choosing a vending machine supplier, you must look for the following pointers:
Expertise
Brand partners
Cost
Support System
Vendekin, a leading name in smart vending machine solutions, has built a reputation for innovation and trust in the vending industry. With over 3,000 active machines in over 5 countries, we have worked with the top retail brands including Nestle, Coca-Cola, Cantaloupe, Naturals Ice Cream, etc.
With product and brand-aligned specifications, our smart and cashless vending machine software has helped make 30,000+ transactions daily. Along with this our support team is always ready to extend a helping hand to understand the technology your business will utilise.
If you want to venture into the world of vending with the leaders in smart automatic vending machine technology, reach out to us via call at +91 9555712713 or email us at marketing@vendekin.com.