Once you have made the decision on the best EPOS solution for your business, the next question is whether you should rent or buy. The right EPOS system will help you to greatly increase turnover, thus growing your profits andhelping you to keep customers happy. To really get the best return on investment though, making the right decision on whether to rent or buy is just as critical.
Of course this is a complex question with many factors. There is no single right or wrong answer but rather it will depend on the specifics of your business; including your budget, goals and business model. Let's take a look then at some of the unique pros and cons for renting versus buying to help you come to an informed decision.
The Benefits of Renting
No Up-Front Investment
One of the most common reasons that businesses opt to rent their EPOS systems rather than buy, is that there is no costly up-front investment. This is particularly useful for small businesses that don't yet have a lot of capital and want to reduce the time it takes to break even. Furthermore, this helps your cash flow meaning you have more flexibility in spending and increased resilience when you need it most. If you're pulling yourself up by your boot-strings, renting an EPOS system will help you to get up and running with the minimal initial expense.
If you buy your EPOS system then you will be stuck with that system until you can afford to upgrade. This can be problematic if you find you've made the wrong choice, or if you want to change your business model. Renting meanwhile allows you to switch your EPOS system as your business evolves without losing any of your investment.
On-Going Support and Maintenance
As with renting a property, renting an EPOS system means you don't need to worry about maintenance or repairs. You don't own the system and so it is not your responsibility to repair it when something goes wrong. The net result is that you spend less time and money dealing with issues and more time reaping the benefits of an effective system. Of course you'll have a warranty when you buy but this won't cover everything that could go wrong so you still risk ending up with an expensive paper weight.
What's more, renting ensures you have access to customer support at all times. When you rent an EPOS it is in that company's best interest to keep you happy and so they will likely bend over backwards to help you with all of your questions. When you rent you aren't just getting the system itself - customer support is normally included as an important part of the package.
As with maintenance, if you rent your EPOS system then you will gain access to free upgrades which might be costly otherwise. This ensures you stay up-to-date with the latest hardware and software and always have the most efficient solution available.
Advantages of Buying Your EPOS System
For larger companies that can afford to make a one-off payment, buying an EPOS system is ultimately the less expensive option as it only involves a single expense rather than a recurring payment ad-infinitum. For large companies with available finances, renting may well prove to be a false economy. Of course this depends on how cheaply you can find your EPOS rental service, as some might still prove to be the more economically sound option once you account for set-up, maintenance and repairs.
When you rent an EPOS you will no doubt have to sign an agreement and follow certain restrictions regarding your usage. While these are unlikely to be problematic for the vast majority of businesses, there may be some unique usage scenarios where you require more flexibility and in those situations you may need to buy.
If you purchase your EPOS systems they will count as assets towards your company's working assets. Ultimately, this will increase the value of your business and gives you more assets to sell off in future.
Conclusion – Should You Rent or Buy?
So with all that in mind, which strategy is best for your organization?
While there are many advantages to both renting and buying, the decision will most likely come down to the size of your business as well as the nature of your industry. For large established corporations, either option is viable. Buying might ultimately offer savings in the long run but will also present more challenges and require a great investment in time.
Renting however will offer the best short-term savings and the superior support and maintenance in the long term. This makes it an appealing choice for businesses of all sizes but especially for local and small businesses that need flexibility and support and who don't want to break the bank to start serving their customers. For smaller companies, renting ultimately offers the best return on investment and minimum risk.