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Planet Antares Inc - A blog to discuss the vending solutions provided by Planet Antares.

Tuesday, April 14, 2009

Planet Antares Vending Equipment – Operating Leases

Vending operators feel that they are under unvarying stress to sustain profitability and also increase their return on investment(ROI). The best measure of overall business performance for any business is return on assets (ROA).

Vending operators have found a new way to increase ROA by leasing out vending machines. This is referred as “ Operating Leases”

As a newcomer in the vending business you would like to start off with Planet Antares vending machines. You will notice that operating leases provide increased ROA as well as reduce the operator’s risk by enhancing plasticity in allocating assets to the highest revenue generating location. Leasing Planet Antares vending equipment is just like leasing trucks, copy machines or other automobiles.

Some of the benefits of operating leases in vending equipment are:

  • Matches the revenue stream of a contact with the lease cost of equipment.
  • Reduces the fixed cost of a purchase with the flexibility of a lease.
  • Frees capital for other requirements

Planet Antares vending operators struggle to increase and maintain the profit level before taxes portion of the ROA ratio. Some of the problems faced by vending operators are:

  • Competitive pricing stress
  • Increased commission costs
  • Government regulation
  • Inventory contraction
You will need to put in extra amount of focused effort on cost and revenue structure.

In general, vending equipment is the most significant asset on the Planet Antares vending operator’s balance sheet. Thus, the daily challenge of the operator is to strike the right balance between income and assets, which increases one’s ROA.

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