🔻 Disadvantages of Selling Over Renting
1. Higher Legal and Compliance Burden
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We may be required to provide warranties, comply with consumer laws, and meet product safety regulations.
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If a customer has a problem, they might request repairs, replacements, or refunds under Australian Consumer Law.
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Selling products can expose us to liability claims, especially if there’s an injury or malfunction.
2. Support and After-Sales Obligations
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Buyers will expect ongoing technical support, software updates, and possibly training.
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If the display fails at a live match, the buyer might blame us, hurting our reputation or even leading to legal action.
3. Inventory and Manufacturing Pressure
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We would need capital and a team to mass-produce and support the units.
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Forecasting demand is risky: build too many, and we lose money. Build too few, and we miss opportunities.
4. Price Sensitivity
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Many customers may not understand the value of what goes into a digital scoreboard (R&D, electronics, software).
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We may be forced to undervalue our product just to compete, which doesn’t justify the effort or cost.
5. Loss of Control
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Once we sell it, people might modify, misuse, or even clone our design.
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Renting keeps the hardware under our control and limits intellectual property exposure.
✅ Benefits of Renting Over Selling
1. Recurring Revenue
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Rentals provide stable, repeatable income from the same hardware over time.
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This model is often more profitable in the long run—especially since our units last for years.
2. Low Risk, High Control
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We maintain full control over our equipment, software, and branding.
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It’s easier to ensure quality and performance since we’re involved with each rental.
3. No After-Sales Headache
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Once the rental period ends, our responsibility ends too.
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We don’t have to worry about long-term technical support or guarantees.
4. Market Testing and Evolution
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We can experiment with features, pricing, and design updates without committing to mass production.
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Feedback from renters helps us improve the product continuously.
5. Exclusivity and Value Perception
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Renting positions our scoreboard as professional-grade, not a cheap, disposable product.
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This helps maintain a premium image, especially for sports clubs and major events.
✳️ When Might Selling Make Sense?
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If we design a lower-cost, simplified version of the scoreboard for grassroots or community use.
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If we’re ready to scale up with manufacturing, support, and legal infrastructure.
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If we develop a plug-and-play version that needs minimal support.
✅ Summary Table:
Aspect | Selling | Renting |
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Income Type | One-time | Recurring |
Legal Responsibility | High (warranty, liability) | Low |
Support Required | Ongoing | Limited to rental period |
Upfront Cost to Customer | High | Lower |
Brand & IP Control | Harder | Easier |
Risk Level | High | Moderate to low |
Suitable for Our Business | ❌ Not ideal | ✅ Recommended |