Equipment: is it better to buy, or to lease, or to rent?

[Neil McCauley]

"Hi there.

Would you like an opportunity to help shape future policy re customer buying options at a retailer?

From time to time we like to give our customers new ways to look at getting their hands on some of the excellent hifi equipment that is now available in this fairly high end market.

For a long time people used to rent their TVs, washing machines, videos, etc., until the costs came down to a level that it became much cheaper to purchase these items.

However, some of the reasoning behind this method is still valid today. Such as if there is a problem with the equipment, one phone call gets it sorted either by immediate repair or replacement. When a new model becomes available you can easily upgrade at very little, if any, extra cost. When the item you want is more expensive than you can currently afford. And when you decide you no longer want it, you simply cancel the agreement after fulfilling the initial contract.

It’s not everybody’s ideal but it can suit some.

With that in mind please answer the following questions:"

http://www.surveymonkey.com/s/G3VJTPS


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[Themis]

Ok, survey answered. I like the "rent" idea for expensive gear. ;)

[Neil McCauley]

Ok, survey answered. I like the "rent" idea for expensive gear. ;)

As of 23:01 20/8/11; 127 completed responses - but not just from AoS members.

Q1: Yes = 34.1%, No = 35.6%; Maybe = 30.4%

Q2: Yes = 33.3%, No = 39.9%; Maybe = 26.8%

Q2: Yes = 46%, No = 54%.

I will be updating the results every few days, for the next fortnight or so.

Thank you to everyone who has participated so far. I'm already thinking about the implications. Sincerely, Howard


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[markf]

Not such a bad idea Howard,
I wouldn’t mind renting a Soulution system for 2 or 3 months
just to see how it sounds (that would be a 711 pre-amp,750 phonostage and 710 power amp)
but what would the monthly charge be for an expensive system like that? And would you require
a hefty deposit in-case of damages etc.

[Macca]

What a great idea, dependant on the rental cost though...the model worked for televisions and VCRsz in the seventies and eighties and still works now for motor vehicles so I see no reason why it would not work for hi-fi.

[Neil McCauley]

Not such a bad idea Howard,
I wouldn’t mind renting a Soulution system for 2 or 3 months
just to see how it sounds (that would be a 711 pre-amp,750 phonostage and 710 power amp)
but what would the monthly charge be for an expensive system like that? And would you require
a hefty deposit in-case of damages etc.

Thank you. I'll be talking to my accountant in the next fortnight about the commercial reality of this. Regards. Howard.


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[Neil McCauley]

What a great idea, dependant on the rental cost though...the model worked for televisions and VCRsz in the seventies and eighties and still works now for motor vehicles so I see no reason why it would not work for hi-fi.

My view entirely. I'm investigating how the arithmetic might work out. Thanks. Howard.


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[monkfish]

Hi
A good idea, but in this day of scammers and dishonesty, a difficult one. Obviously a huge deposit rather defeats the purpose, but there may be some way to make it work.
Regards
Jim

[sq225917]

Howard, would the numbers be that different from expensive cars, they both suffer from similar residuals, 50% after 3-4 years.

Renting gear might cause brands to invest in an entirely different design paradigm, one that embraces long service life and interoperability, a PC based style architecture perhaps. A la high end Meridian and solution for example.

[addict]

I understand German Naim dealers lease their demo stock.

[Neil McCauley]

As of 14:24 Monday 22/8/11; 137 completed responses - but not just from AoS members.

http://www.surveymonkey.com/s/G3VJTPS

Q1: Yes = 37.4%, No = 34.0%; Maybe = 28.6%

Q2: Yes = 36.0%, No = 38.0%; Maybe = 26.0%

Q2: Yes = 44.3%, No = 55.7%.

I will be updating the results every few days, for the next fortnight or so.

Thank you to everyone who has participated so far. I'm still thinking about the implications. Sincerely, Howard


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[howlindawg]

Very interesting Howard, I've completed the survey and will watch this space with interest.

My biggest concern would be how you could protect yourself from people abusing the leased equipment.

Having had bad experiences with the way people mistreat rented accomodation and furnishings I dread to think how this facility might be abused.

[Neil McCauley]

Very interesting Howard, I've completed the survey and will watch this space with interest.

My biggest concern would be how you could protect yourself from people abusing the leased equipment.

Having had bad experiences with the way people mistreat rented accomodation and furnishings I dread to think how this facility might be abused.

I'm taking advice on this. Meanwhile, thank you. Sincerely, Howard.

[synsei]

An excellent idea Howard. May I also suggest that you include some kind of short rental period, perhaps one to three months, for customers who are thinking of upgrading components and might want to live with that component in their system for a while before committing to buy? This would also give you an opportunity to offer some kind of discount or deal for those who follow through and purchase from you. If you choose to adopt this model a deposit might be a wise idea ;)

Dave... :cool: