🔻 Disadvantages of Selling Over Renting

1. Higher Legal and Compliance Burden

• We may be required to provide warranties, comply with consumer laws, and meet product safety regulations.

• If a customer has a problem, they might request repairs, replacements, or refunds under Australian Consumer Law.

• Selling products can expose us to liability claims, especially if there’s an injury or malfunction.

2. Support and After-Sales Obligations

• Buyers will expect ongoing technical support, software updates, and possibly training.

• 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

• We would need capital and a team to mass-produce and support the units.

• Forecasting demand is risky: build too many, and we lose money. Build too few, and we miss opportunities.

4. Price Sensitivity

• Many customers may not understand the value of what goes into a digital scoreboard (R&D, electronics, software).

• We may be forced to undervalue our product just to compete, which doesn’t justify the effort or cost.

5. Loss of Control

• Once we sell it, people might modify, misuse, or even clone our design.

• Renting keeps the hardware under our control and limits intellectual property exposure.

✅ Benefits of Renting Over Selling

1. Recurring Revenue

• Rentals provide stable, repeatable income from the same hardware over time.

• This model is often more profitable in the long run—especially since our units last for years.

2. Low Risk, High Control

• We maintain full control over our equipment, software, and branding.

• It’s easier to ensure quality and performance since we’re involved with each rental.

3. No After-Sales Headache

• Once the rental period ends, our responsibility ends too.

• We don’t have to worry about long-term technical support or guarantees.

4. Market Testing and Evolution

• We can experiment with features, pricing, and design updates without committing to mass production.

• Feedback from renters helps us improve the product continuously.

5. Exclusivity and Value Perception

• Renting positions our scoreboard as professional-grade, not a cheap, disposable product.

• This helps maintain a premium image, especially for sports clubs and major events.

✳️ When Might Selling Make Sense?

• If we design a lower-cost, simplified version of the scoreboard for grassroots or community use.

• If we’re ready to scale up with manufacturing, support, and legal infrastructure.

• If we develop a plug-and-play version that needs minimal support.

✅ Summary Table: