Vending is a way of not only pleasing your staff and customers but also a additional means of generating revenue. Done right it can increase foot flow, provide a service or produce a focal point in a office, saving on kettles and kitchen facilities, and now with all the latest designs and branded machines, vending machines can be pleasing on the eye!

But before visiting the show have you thought about how you are going to finance the installation of one of these machines? How are you going to fill and service it? And what should you expect when met on stand by a member of the sales team? Vi decided to give you a brief overview on the contract options available.

Rental agreement direct with the vending company

These are generally for a shorter duration and not often for a fixed term, requiring you to give notice when looking to change at a later date. The tie in can be restrictive in that you may not be able to take another company’s machines into your premises for the duration of the agreement, so if you are considering installing different types of machines into your premises, make this the first question you ask to ensure you get what you want. Also ask if an operator’s agreement is part of the package or if you are required to source your own.

Operator’s agreement

An operator’s agreement (generally with a regional company) will cover you for filling, cleaning and collecting cash - generally the look after the day-to-day requirements to ensure a fully stocked and sanitized machine that is regularly emptied of all cash to negate the worry of a break in.

Leasing agreement

A leasing agreement means you work with your chosen leasing company or one recommended by your supplier. The lease would cover the financing of the machine only. Your leasing company will discuss your requirements and agree terms. A lot of the paperwork is now much easier and can be completed on line. You also benefit from a designated sales member who will be allocated to your company so you have a clear line of contact. VI spoke to two companies for their comments on leasing.

“Leasing provides tax efficient funding for companies looking to spread the cost of their equipment over time,” says Steven Brown of Kennet Equipment Leasing Ltd, who offers a onestop service for equipment leasing needs. Kennet can provide leasing from a small to large number of machines and spread costs between 1 to 6 years.

Siemens Financial Services has a 20 year track record serving the vending industry. “We make the process of business finance as transparent as possible - clear, understandable and open. But most of all it is fast, effective and easy to use.” Siemens offers the facility of an online lease proposal tool called ease-elease. Here is what Mark Robinson of Vitas Vending said about this service: “The ease of use, speed of decision making and overall reliability of ease-elease is very impressive. It has revolutionised the way we provide outside finance to our customers - I don’t quite know how we coped without it.”

Don’t forget by leasing you will need to set up an operator’s agreement for your day to day running.

When purchasing or leasing equipment, you might also want to consider reconditioned or refurbished equipment. These can be cost effective and fit the smaller business budget.

How do you make your money?

A question, which is always in the back of your mind - if not the first thought when considering a vending machine.

The vend price is what your customer pays, the cup cost is the price you will be charged from your operator. The difference in between is returned to you as profit - although don’t forget the VAT man!

What’s it going to cost you?

On top of the cost of the equipment, if you take the lease route, just your management fees. These are dependant on operator and service required.

Installing a vending machine really is quite painless. When meeting with the sales teams, each option will be discussed, and you can decide what is right for you.

Contacts:
Steven Brown, Kennet - 01675 469216
Siemens - 01753 434000

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