Introduction: Buy vs Rent – Which Is Better for Cotton Candy Vending Machines?
Are you interested in starting a business with a cotton candy vending machine? If so, you’re probably asking yourself: should I rent or buy the machine? You might initially think that renting seems like the less risky way to go. But for vending business owners, buying a machine almost always results in higher profits, a faster return on investment (ROI), and full ownership of the business. So why is buying a machine the better choice? Read on to find out:
7 reasons to buy your cotton candy vending machine
- Lower Costs Over Time
Renting a vending machine might not seem like a lot on a monthly basis, but these costs can really add up over time. Rental contracts can come with all sorts of fees and surcharges: maintenance, buyout, site fees, etc. On the other hand, buying a cotton candy vending machine gives you:
- No monthly payments eating into your profits
- Full ownership of the machine after a one-time purchase
- Complete freedom and control over where and how you use the machine
Example: Mid-level machines (with stand) usually start at $5,000 – $10,000. A well-positioned machine (shopping mall, theme park, airport, tourist attraction) can often pay for itself in a few months. Check this guide for more information about cotton candy vending machine prices.
- Faster ROI – Pay Off in Months, Not Years
Cotton candy vending machines are typically a high-profit-margin business. Raw materials are very inexpensive (mostly sugar), and the product has a high visual appeal and emotional value. Profit margins are easily in the 70% or higher range.
In a popular spot, one machine can easily generate $200 or more per week. This means most machine owners achieve full ROI within 3-6 months.
“With high customer traffic, you could recover the cost of the entire machine in a single season.”
Renting takes away from these profits to cover rental payments, slowing your recovery time and extending your break-even point.
- Long-Term Passive Income
Once the initial purchase is paid off, the rest of your profit from the machine is pure profit (discounted your ongoing supply costs for sugar, flavors, etc.). Maintenance permitting, one vending machine can last many years, providing long-term passive income.
Renting requires you to keep paying rental fees forever, always slowing down your profits and slowing down when you can fully pay off the machine.
- Flexibility to Scale Your Business
Owning your machines gives you total control of your business:
- Freedom to install them wherever you want
- Ability to customize the machine (look, branding, LED signs, etc.)
- Option to relocate and move machines to other spots for optimization
Renting machines often comes with relocation restrictions and rules about branding, signage, and other customizations, limiting your business options and flexibility.
- Resale Value and Asset Ownership
A machine that you buy is a valuable business asset. If you outgrow your current business or need to pivot in the future, you still have several options:
- Sell used machines on the second-hand market
- Leverage the value of your machines as assets to access business financing
A rented machine has no value to you. It is a short-term tool with no long-term use.
- Tax Advantages
In many areas, you can write off the purchase of equipment like a business asset and depreciate it over time. You can also deduct other expenses related to the vending business operation. Check with a tax professional for local details.
- Customization Options
Want to spice up your cotton candy vending machine with some cool features? With complete ownership, you can customize the appearance and features of the machine:
- Machine branding lit up with LED lights
- Interactive touchscreens
- Multicolor cotton candy options, etc.
Customizing a rented machine is usually not an option. If it is, you’ll need to pay additional fees for this flexibility.
When Renting Might Make Sense
There are limited cases where renting could be helpful:
- Renting a machine in a new location to test traffic without committing long-term
- Short-term vending at special events or festivals
- Tight startup capital and looking to launch with no money down
The Better Option: Buy with a one-time payment instead of leasing
You might think that you can just buy a vending machine with an easy leasing arrangement, but there are typically better options for savvy vending machine business owners.
For example, to buy, you can pay upfront with a credit card over time, use a business line of credit, or even put together a simple business plan to get a loan and pay over several months or years.
Examples:
“Ethan sold our VIP rental package (includes machine and lease) for less than the outright purchase price.”
– Taylor Matze, Vending King | “Renting machines made me feel like a loser that was taking money from the business.”
– Howard Stylin, Mr. Vending Machine
Conclusion: Buy for Bigger Profits and Business Control
Renting a cotton candy vending machine is an option for business owners, but for the majority, buying a machine is always the better option to maximize your profit and control over your business.
Buying over renting results in:
- Faster ROI
- Long-term passive income
- Complete business control
- Customization flexibility
- Full asset ownership
The profits from a well-positioned machine can typically be paid off in a matter of months, which will quickly cover the initial purchase costs and start generating sustainable long-term profits. Don’t be short-sighted on this decision!
Call to Action
Ready to start your vending journey? Invest in a cotton candy vending machine today and turn every sugary swirl into lasting profit!
