There are a couple of companies out in the market that will offer “free on loan” coffee vending machines and coffee machines to companies. On the face of it this sounds like a great idea; you only pay for the drinks that you use. However, as with most offers that seem too good to be true, it is too good to be true.
Typically you will be asked to commit to a minimum drinks usage/purchases over a number of years. If you do not meet these minimums then there are punitive charges that will be made. Theses extra charges can amount to a great deal of money.
The company offering these “free loan deals” will also load the product price. This means that whilst you may not be paying a rental or lease for your coffee vending machine, you will be paying considerably over the odds for your drinks. We found an instance recently of a company paying more than twice what Kenco Local Business Service would charge for coffee. This was all so that they could benefit from a “free on loan” coffee machine.
You don’t have to be a genius to work out that this means that there really is no such thing as “free on loan”. In almost every instance we have come across you will end up paying more money for a “free” coffee machine than if you simply rented one and paid a considerably lower price for the coffee. You are also then not tied into a minimum usage agreement with potential penalties. Sadly the companies that offer these deals are no fools and their contracts are water tight. Once you have signed and taken delivery of the machine you are stuck with them, and stuck paying over the odds for many years.
We are experienced with these kind of deals. If you have been offered one of these and would like to talk over the pros and cons please give us a call and we would be delighted to discuss it.