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You might have heard the phrase “There’s no such thing as a free lunch”. There should be an analogous saying in the coffee world stating “There is no such thing as a free coffee machine.” However, free coffee vending machines exist but they do come at a price. So how does it work?
A coffee machine costs a company in two ways:
- The coffee machine itself is either bought or rented by a company
- The coffee products such as the coffee beans, milk powder, hot chocolate etc is also bought by the company on an ongoing basis
Many coffee companies will give the coffee vending machine away as long as the company using the machine buys a pre-specified amount of product. This has pro’s and con’s.
The Good Deal
It’s great to get a free coffee vending machine when the monthly charge is quite reasonable and doesn’t conceals a hidden rental. To better explain this – if the coffee product required on a monthly basis would ordinarily cost you R3000 and the company “giving” you the machine still charges you R3000. That’s a great deal. So how can they do that? Well, simply put, they will sponsor the machine for you because you have committed to buy all the coffee consumables from them (you keep paying for the printer ink, and you get the printer free).
The Bad Deal
It’s a really bad deal when you get a free coffee machine but the amount charged monthly for the product is unreasonable and is directly inflated to conceals the hidden rental charge. Again, to explain – if the coffee product required on a monthly basis would ordinarily cost you R3000 and the company “giving” you the machine now charges you R4500 for that product whilst giving you a “free coffee machine” then of course your coffee machine isn’t really free at all, rather costing you R1500.00 per month on rental fees.
Another Bad Deal
Another bad example to get a free coffee vending machine, is when the company giving you the machine commits you to a certain amount of product which you are unsure that you can finish. We have seen many companies who have been signed up to order R3000 of product per month and had R3000 of product delivered just to find that they need to rent out extra space just to store the unused product as they can only consume R1500 worth of product per month.
A Great Deal
You know it’s a great deal when you get a free coffee machine when and the monthly charge includes unlimited supply of product and you can order as much or as little as you want. It’s so nice to know what you are in for on a monthly basis without running the risk of filling a store room full of coffee or fretting that your employees are drinking too much coffee.
To find out how much a “free coffee vending machine” will really cost your company please drop us a line.
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