🔻 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:

Aspect Selling Renting
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

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