BusinessHABRent food service equipment: Buying and selling items is the foundation of many businesses. But what about the items that people don’t need on a continual basis? In these instances, both consumers and business owners can benefit from a more practical rental business model. Read on for ideas in this profitable niche. Here are several factors to consider as you evaluate which option is best for you.
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Rent food service equipment
1. Why You Should Start a Rentals Business
A rental business is one where the company owns an asset or inventory that it rents out to consumers for a one-time or daily fee. This business model is beneficial because the company doesn’t need to constantly replenish its supply, and it’s often less expensive for consumers to get the items they need.
2. The Rental Businesses Industry
The rental market for various items is thriving in the world today. People are realizing the cost savings, practicality, and sustainability of only buying the items they need and renting the rest. Technology has also opened up new ways of connecting businesses and property owners with potential consumers and renters.
Rent food service equipment
3. Lower Upfront Costs –
As a renter, you pay less upfront because you only pay an initial fee plus a monthly rental payment vs. covering the full cost of expensive equipment like an espresso machine. This can help small business owners with limited starting capital.
See also: 50 Tax Deductions for Small Business Owners.
4. Decreased Liability –
Similar to the difference between owning or renting a home, renting equipment lowers your liability significantly. For example, you won’t be liable for damages if you experience some sort of issue with your rented drip coffee machine.
5. Covered Machine Maintenance –
Most rental companies provide maintenance with their machines. This means you avoid out-of-pocket expenses for unexpected issues as well as routine maintenance, such as updating parts.
Rent food service equipment
6. Greater Flexibility –
If you decide your current equipment is not the right fit, you can adjust your rental contract to include different machines that better meet your evolving business needs.
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7. Limited Warranties –
Manufacturers typically include at least a one-year warranty after you purchase their equipment.
8. Resale Potential –
If you own your equipment, such as an espresso machine, you can usually recoup part of your original investment by selling the used machine for a fraction of its original cost to another coffee shop. This is a common industry practice and also means you may be able to buy a used machine at lower cost from another cafe. Just make sure any used equipment you buy is in good condition.
See also: 50 Closest Soul Food Restaurants to Your Home
Rent food service equipment
9. Lower Long-Term Costs –
If you don’t plan to order core supplies for your shop through your equipment rental company, you can achieve lower long-term costs by buying your own machines. Moreover, if you don’t like the type of coffee and other supplies offered by your equipment rental company, you’ll be better off sourcing products for your shop elsewhere.
10. Flexible Payment Plans –
Some equipment manufacturers offer flexible payment plans when you buy their machines. This is particularly helpful for small businesses faced with purchasing a large espresso machine, which can easily cost more than $6,000.
See also: 50 Soul Food Restaurants Near Me That Deliver
Rent food service equipment
11. Increased Liability –
As the owner of your espresso machine and other equipment, you are responsible for all maintenance costs. To minimize those costs, you should keep up with routine maintenance by cleaning your machine every night, backflushing it during the day, and replacing smaller parts yourself.
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