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  1. #1
    Join Date
    Jun 2009
    Frederick, MD

    Rent to own! this a good idea?

    hi there guys and gals!

    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.

    let me know what yall think.
    A new world in gaming.

  2. #2
    Join Date
    Sep 2006
    Dallas, TX
    I am not sure quite how this works in favor of the datacenter. Why don't they just buy the server outright and host the customer on it?

    Please try to explain the business model a little more clearly.

  3. #3
    Join Date
    Oct 2000
    Lake Geneva, WI.
    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non-existent over that same period, and often times can be replace for the less than the cost of continuing to use the outdated server in a colo environment.

    In other words, I see no value in owning an old outdated piece of equipment when the costs involved in upgrading at the providers expense are much less than that of either starting from scratch with your own machine,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 Or worse, continuing to use a slower, outdated server at the same or higher cost than that of the new one.
    Jeremy Anthony Kinsey ([email protected]) - 262-248-6759
    Budget Dedicated Servers/Colocation HostDrive.Com
    cPanel Hosting/Dedicated Servers HostingLizard.Com
    19 Years in the Hosting Business!

  4. #4
    Join Date
    Jun 2009
    Frederick, MD
    after a year or two of payments, they would be outdated.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
    A new world in gaming.

  5. #5
    Join Date
    May 2009
    Chicago, Illinois, U.S.A
    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, Inc. US | CloudMega, Ltd UK
    US Toll Free: 888.401.2006 | Intl +1 312.757.5400
    UK Toll Free: 0800.368.9925 | Intl +44 20.3540.7807

  6. #6
    Join Date
    Aug 2007
    L.A., CA
    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?

  7. #7
    Join Date
    Jul 2008
    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.
    Dedicated Servers in Europe and Asia:

  8. #8
    Join Date
    Oct 2009
    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.

  9. #9
    Join Date
    Jun 2009
    Frederick, MD
    i am going to give it a try, i am going to do it if they want to rent to buy they only have a 6 month term.
    A new world in gaming.

  10. #10
    Join Date
    Nov 2007
    Dallas, TX
    Rent-to-own can be a decent option, but make sure that you truly want that hardware for the long haul (e.g. 2-3 years from now).

    Mike G. - Limestone Networks - Account Specialist
    Cloud - Dedicated - Colocation - Premium Network - Passionate Support
    DDoS Protection Available - Reseller Program @LimestoneInc - 877.586.0555

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