Understanding and Applying Important Business Principles

Why Lease A Kiddie Coin Ride?

13 January 2021

Jon Sanchez

If you want to install a kiddie coin ride outside your store, then you have to decide whether to buy or lease the machine. An upfront purchase might look like an easy option; however, leasing also has benefits. What are they?

Test How Well the Ride Works

While you might think that a kiddie ride will work outside your store, you won't actually find out if this is true until you set one up. If you buy a ride, then you risk wasting your money if you don't get the business you need.

If you don't have enough kids wanting to use the ride, then you won't make money from it. You'll have paid a significant sum for something that doesn't give you a return on your investment.

If you lease a kiddie ride, then you don't have to pay for it upfront. You make regular smaller payments, kind of like rental payments, over the course of your lease agreement.

This agreement gives you the chance to see what kind of returns you get without a large financial investment. If the ride doesn't work as well as you'd hoped, you can hand it back at the end of the agreement. If it is lucrative, you can then choose whether to buy a machine.

Keep Your Rides Fresh

While new rides attract a lot of kids to start with, their attraction might dip over the years. For example, if you buy a character ride and the character becomes less popular with kids over the years, then the ride might not perform well forever.

Also, rides might deteriorate over time. They might not work as smoothly as they did originally after a few years.

You can get around this problem by periodically putting in new rides. If you introduce a new machine, you might attract kids back to try it out. You also keep things fresh by tapping into trending characters and TV shows.

This is harder to do if you buy a ride. While you can sell an old machine before replacing it with a new one, you won't necessarily break even. Rides depreciate over time, so you might have to take a loss when you sell it used.

If you lease a kiddie ride, then you can simply hand it back at the end of your agreement and take out a new agreement for a different machine. You won't have to worry about getting your purchase price back.

Remember that you need to spend some time choosing the right type of ride for your local kids. It often pays to put in a brand that is popular with the age group you're targeting. For example, if you want to attract younger kids, then a branded Paw Patrol Chase kiddie ride will be a popular option.

To find out more, contact kiddie ride suppliers.  

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