Coffee Machine Rental Pricing for Vending and Automatic Coffee Machines

Coffee Machine Rentals are commonplace in offices and restaurants primarily for two reasons:

• Companies often want a service or maintenance plan and coffee machine rentals as a standard have this included already.
• Rentals often offer flexibility compared to purchases and allow companies to change the coffee machine they have as and when their circumstances change (for more info on flexibility that rentals provide, please view our article “The one thing more important than cost, when it comes to renting a vending machine”)

Coffee Machine Rental Pricing is affected by three things in particular

1)Type of Machine

– The rental price of each coffee machine is of course affected by the cost or selling price of that particular coffee machine. The rental pay- back period compared is affected primarily by the points discussed in (2) and (3). Rental pay-back period can be explained as follows. If the purchase price of a coffee machine is R12,000 and the rental price is R1,000 p/m then the pay-back period for the coffee machine is 1 year. You want you “pay-back” period to be as long as possible to get as much value as possible. If the rental price of the same coffee machine is only R100 per month then that would mean the pay back period, for you the customer, would be 10 years which would mean you are getting a lot of value

2) Rental Term

– The rental term is one of the greatest determining factors in the rental price of a coffee machine.  If the rental term is 1 year then the rental pay-back period (see above) is usually around 18 months. If the rental term is 3 years, the rental pay-back period is usually around 4 years. Although the price on gets on a longer term rental is usually considerably lower than in a short term rental. A long term rental does have a number of drawbacks – A long term rental means you are stuck in a contract for an extended period and therefore your options are slim if you want to get out of the rental for whatever reason. Like many things pricing is affected by the risk that you take on.

3) Servicing and Maintenance

– Most coffee machine rentals include a service or maintenance plan which covers anything from minor servicing issues to major faults. This results in an increase in the overall rental price of the coffee machine as the coffee machine provider needs to cover itself in the event that that the machine requires servicing and maintenance. This is sometime a good thing and sometimes a bad thing. Often the “unseen” fee you pay for “free” servicing and maintenance is considerably low, which means you are often getting a lot of value. Some coffee companies however mark their rental up quite considerably so include a service fee which results in exhorbatant rental pricing

Summary

The three things that affect the rental cost of coffee vending or automatic coffee machines as well as each ones benefits is depicted below