Buying or Renting a Coffee Machine

Is it Better to Rent or Buy a Coffee Machine?

Is it better to rent or buy a coffee machine? – Purchasing and Renting explained

One of the most common questions we get each day is,“ is it better to rent or buy a coffee machine” Like with many questions there are no clear-cut definitive answers which can be applied to all circumstances but in this post I will try to give my two cents about when I think it is better to buy and when it is better to rent a coffee machine.

Coffee Machine Rentals:coffee machine rentals

About 85% of all companies choose to rent coffee machines with us as opposed to buying. For many companies rentals do offer a number of advantages over buying buy these pros do not apply to all companies in all circumstances.

How do Coffee Machine Rentals Work?

There are two things a customer pays for when renting or buying a coffee machine.
1. The monthly rental or once off purchase of the coffee machine
2. The monthly supply of coffee and coffee related consumables (milk powder and hot chocolate in the case of a vending machine)
When a company rents a machine from us they have two rental options to choose form. Fixed Rental Pricing (Option 1) is a straight rental price which is independent of coffee usage. This means that if a company chooses option 1 and they use 10 cups per day or 1000 cups per day, the monthly rental for their coffee machine will not change. The rental in Option 1 is usually considerably higher than in our second option (Reduced Rental Pricing).
Reduced Rental Pricing (Option 2) is a rental which is reduced the more coffee one uses. Basically we use companies coffee spend to subsidise (reduce) their monthly rental amount. Whereas a company would pay R1500 for a rental in Option 1 for an instant vending machine, they would pay only R490 rental for the same machine when selecting option 2.

Why Does Everyone not Choose Option 2 Then?

Option 2 does require a certain quantity of usage (usually 15 cups of coffee per day as a minimum). If a company is too small or perhaps doesn’t enjoy our coffee then option 2 would not be the correct option for them.

Rental Pros:

1) Low Cost – The rental in option 2 provides obvious financial advantages as one is able to get a coffee machine for a very low rental (R490 per month) instead of buying it outright at R21500 by taking advantage of the fact that one has to buy coffee every month regardless of whether one has bought or rented the machine.
2) Maintenance Plan – The other advantage of renting is that the rental includes a full service and maintenance plan with free next day swop outs should the machine malfunction.
3) Flexibility – The rental allows the customer to have all the options open to them at all times. At any stage the customer can buy their machine or change rental package to suit their needs.
4) Machine Swops – If one finds that the machine they are renting is not the correct machine for them, they can exchange to a different machine at any time.
5) Limits Risk – Purchasing a machine is pretty final. If you don’t like the machine or your circumstances change (you increase or decrease staff) you can’t do very much besides buying a machine which better suits your current state.

Coffee Machine Purchases:coffee machine purchase

Coffee machine purchases, although not as common as rentals, do still happen. In a coffee machine purchase the machine which you purchase is yours for good and all new purchases are given a 1 year guarantee with their machine.

Coffee Machine Purchasing Pros:

Buying a coffee machine can also present a number of advantages:
1) Small companies – If you are a small company and can’t take advantage of the subsidized rental mentioned above, over the long term it will probably be better financially for you to buy your machine outright.
2) Absolute Certainty – If you have used a particular machine before and are absolute certain that it is the machine for you, going through the test phase in a rental might not be necessary.
3) Coffee- It might be that you don’t like our coffee in which case a subsidized rental which requires you to use our coffee, might not be the best option for you.

So what do you do – Do you rent or buy?rent vs buy

Almost invariably it is better to start on a rental basis regardless of whether purchasing or renting will be best for you in the long run as starting out in a rental allows you to:
• Test the machine before committing to a long term rental or purchase.
• Test the coffee before choosing to rent or buy
• Keep all your options open to make 100% sure that you make the right decision
Click here to view our rental prices or to request a trial on any of our coffee machines please complete your details below

 

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