Understanding the Total Cost of Ownership: Rental vs. Purchase of Commercial Refrigeration and Catering Equipment

When it comes to commercial refrigeration and catering equipment, the initial cost is often a major deciding factor. However, in our consultative sales approach, we emphasise understanding the full total cost of ownership. This comprehensive view helps our customers compare the true cost of owning and operating commercial refrigeration and catering equipment against our rental offerings.

The Holistic View of Ownership Costs

When you consider buying refrigeration and catering equipment, it’s not just the purchase price that matters. There are many factors that contribute to the total cost of ownership, often overlooked in the initial decision-making process.

1. Equipment Downtime: The cost impact of commercial refrigeration and catering equipment downtime can be significant, affecting your business operations and revenue.

2. Maintenance and Servicing: Regular maintenance and occasional servicing for your catering equipment and refrigeration units are vital for the longevity and efficiency of the equipment, incurring ongoing costs.

3. Preventative Maintenance: Proactive catering equipment and refrigeration unit checks and maintenance can prevent costly breakdowns but add to the expense.

4. Interest on Capital: If you’re purchasing with borrowed capital, the interest adds a substantial amount to the total cost.

5. Spot Hire during Breakdowns: In case of equipment failure, the cost of hiring alternative commercial refrigeration or catering equipment can be costly.

6. Opportunity Cost: Capital tied up in equipment purchase could be deployed elsewhere for potentially higher returns.

7. Capital Expenditure on Replacements: Over time, the need to replace outdated or worn-out commercial refrigeration and catering equipment represents a considerable capital outlay.

Our Rental+ Plan

A Strategic Approach

Our Rental+ plan is designed to offer a comprehensive solution, addressing many costs that are not immediately apparent in a purchase model:

Reduced Downtime: With our efficient service and maintenance, downtime is significantly reduced for commercial refrigeration and catering equipment.
Predictable Servicing Costs: Regular maintenance is included, making costs predictable and manageable.
Flexibility: Adapt to changing business needs without being tied to outdated or unsuitable equipment.
No Hidden Costs: Interest, spot hire, and replacement costs are eliminated from your financial planning.
Capital Freedom: Redirect your capital into more profitable ventures rather than tying it up in depreciating assets.
Enhanced ESG Compliance: By reusing and recycling equipment, your business moves towards more sustainable practices within the circular economy.

Intangible Benefits

There are other invaluable benefits that come with our Rental+ plan:

Weekend Coverage and Rapid Replacement: We ensure that your business never suffers due to equipment issues, with prompt replacement if necessary.
Controlled Costs and Agreed SLAs: Our agreements are transparent with no surprises.
No Additional Parts Expenses: All part replacements are covered under the rental plan.
Improved Staff Satisfaction: Consistently functioning equipment means happier, more efficient staff.
Environmental Sustainability: Our approach to reusing equipment aligns with ESG goals.