Buying or Leasing Ice Machines: Which is Best for You?
Purchasing ice making machines is a massive investment, more so for upcoming businesses. New entrepreneurs may find it hard to part with the huge funds involved at once. Ice machine leasing services are provided to provide business owners an affordable solution as far as the production of ice is concerned. The current business world has taken a dynamic dimension, which means that you can lease almost anything that you can buy.
Before buying new ice makers or replacing your existing units, there are several factors that you need to consider. This will help you establish whether it is viable to either buy or lease the equipment. Keep in mind that each of the two options has its benefits and downsides. Evaluate the needs of your business before you make a choice. Before coming to a decision, you should ask yourself some pertinent questions. A thorough evaluation of each question means you won’t rue your decision later.
Advantages of Leasing an Ice Maker
Leasing is advantageous, more so if the equipment that you intend to acquire need to be regularly updated. When you lease, it is easier and quicker to update to newer models. Leasing helps you remain competitive. It similarly helps you avoid getting stuck with out-of-date appliances.
Leasing is stress-free and flexible since you can negotiate the amount of payments that you will make over the lease period. In addition, you can make predictable and easy payments, which you can easily budget for. This way, you won’t have to deal with a huge lump sum payment. Besides this, renting an ice maker gives you more options because you can get any type of equipment that you wish for. This means you are not restricted by huge up-front costs.
When you opt to lease ice machines, you are not required to pay maintenance costs. If the unit breaks down or experiences glitches caused by ordinary wear and tear, it is the leasing company that has the obligation of fixing it or replacing it. This saves you a lot of costs in the long run. It equally gives you an opportunity to focus on running your business.
Disadvantages of Leasing an Ice Machine
When you lease, you are likely to pay higher costs that what you would have paid had you bought the appliance. Since the equipment is owned by the leasing company, you do not have any equity. The strict agreements that are associated with leasing mean that you might be forced to stay with the appliances for longer than you require.
More often than less, there are disagreements when the equipment breaks down. At times, it ‘s hard to get the parts fixed due to disagreements about what the company is responsible for. Also, the availability of some ice machine models might be limited since this is dependent on the stock that the leasing company has. This means you might end up with an appliance that you did not need in the first place.
Advantages of Buying an Ice Machine
When you buy an ice maker, you assume total ownership. This means you can easily make alterations and modifications whenever it is deemed fit. You are also responsible for repairs and maintenance, which means that you can have problems fixed within a short time. Besides this, you can sell the equipment whenever you feel like. This allows you to recoup part of the initial outlay.
Buying negates the need to deal with contracts and agreements because you are only required to choose an ice maker and thereafter, pay for it. In addition, you have limitless control over the equipment that you end up with since you are not limited by the retailing company’s stock. It is easy to buy any brand without being restricted by leasing conditions.
Cons of Buying
To buy an ice maker, you need to have a higher amount of money compared to making low periodical payments. It is also difficult to buy costly equipment. High initial costs may prevent you from buying the exact model that you need. This might force you to opt for lower-cost models. If the technology gets outdated easily, you might end up getting stuck with obsolete ice machines that you cannot sell. Owing an ice maker is also costly since you are required to pay for repairs from your savings.
Questions to Ask Yourself
How Long Do You Need the Ice Maker?
In the event that you are planning to use the ice maker for a short time, leasing may be a better option. Individuals who are hosting one-off events should consider leasing over buying. When leasing, find whether the machine comes with a buyout option once the lease comes to an end. This will help you decide to either keep or return the equipment when the lease is over.
What are the Needs of Your Business?
It is common for businesses to have low season and high season spells. The business high season often coincides with high demand for ice. This might force you to acquire additional units. On the other hand, low season is accompanied by marginal sales. This might force you to reduce your ice production. Also, your scale of operations should also determine whether buying or leasing or buying is best for you.
What is the Frequency of Technology Change?
The ice maker manufacturing industry is quite competitive. Newer models are introduced to the market at a fast rate. You need to consider this before you decide to either buy or lease. In line with this, ask yourself whether technology is important to your business or not. This will help you establish whether short leases or buying is best for you. It is advisable that you come up with a cost-effective way of updating your existing technology. This will put you in a position to satisfy the demands of your clients.
Whether you buy or lease an ice machine, each of the choices has its advantages and disadvantages. Most individuals prefer buying to leasing. However, leasing gives you the advantage of flexibility and scalability. This makes it the best choice.