I am wanting to start a rent to own store for dedicated servers, while keeping awsome prices!
all the servers i am going to rent to own are less than a few months old.
do yall think rent to own is a good way to make money in this market?
my idea is, i am making a deal with a datacenter that will have my servers.
that once the server is bought i can transfer the server over to them as the owner and the customer can just pickup the bill for the colocation service.
as for the cost of the servers, i am going to have short term and long term deals, where they will not pay over 10% extra of what the server cost me to build it.
The problem with rent to own in a commodity market like this is that the product someone is "renting to own" is it has no value. The cost of the server over the life of the plan is negligible at best. The value of the server is non-existent over that same period, and often times can be replace for the less than the cost of continuing to use the outdated server in a colo environment.
In other words, I see no value in owning an old outdated piece of equipment when the costs involved in upgrading at the providers expense are much less than that of either starting from scratch with your own machine, or upgrading the current one. Or worse, continuing to use a slower, outdated server at the same or higher cost than that of the new one.
after a year or two of payments, they would be outdated.
but, alot of people cannot strait out buy a server or anything of the type.
thats why i would think this is a good idea. but your statement is true.
My Plans are for the following
Rent to own:
6 Month Plans
12 Month Plans
18 Months Plans
24 Month Plans
Each plan will have the option of just renting the server or rent to buy, and if they choose rent to buy they will be givin the time plans above.
of course the prices will differ among different machines and weither or not they wana rent to own or just rent.
The servers i put up are going to be brand new machines. 1 to 3 months old.
they will still be decent in 6 months to a year i think.
please keep the comments coming people, this is helping me alot
You should rethink the rent to own concept. Servers do deplete in cost over time as technology changes. Yes you might be comfortable with a solution for a year but keep in mind later hardware costs for replacement parts for the machine.
Miguel Villegas, VP Sales & New Business Development CloudMega.net
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Where will you get the cash to front these people their machines? After getting all this cash up front and letting them borrow your money for 24 months, you will only receive 10% profit after 2 years... not counting any cost to borrow the money to build the machine to begin with?
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We learned that servers we built 2 years ago are rather useless today. Nobody wants them anymore and we do not want them either, because the old CPUs we used were big energy eaters. Nowadays you get 45W CPUs which do 3 times better than 95W CPUs 18 months ago.
You might not notice a big difference when you rent a few servers. But when it sums up to a few hundred even thousand you will cry everytime you get your electricity bill.
So my opinion about rent-to-own: rather useless, especially after 18-24 months.
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I can appreciate you trying something new, that's how people come up with great stuff. But most of the times when something doesn't exist yet there probably is a reason for it, seem like there are enough reasons not to try this.