The Smart Shift: Why Cafes Are Choosing to Fund Coffee Equipment Over 'Free on Loan'.
Do you really know how much Free on Loan is costing you?
Are you still relying on 'Free on Loan' for your cafe's coffee equipment? Discover why a shift to funding is the innovative solution for modern cafes.
In the bustling world of coffee, where every bean and brew counts, cafe owners and roasters are constantly on the lookout for innovative ways to enhance their operations and delight customers. Traditionally, 'Free on Loan' (FOL) arrangements for espresso machines and other coffee equipment have been the norm—a hallmark of support from roasters to cafes. But as the industry evolves, so does the approach to acquiring essential coffee-making tools. Let's explore why funding coffee equipment is becoming the choice for forward-thinking cafes and how Counting Beans Capital is helping Cafes and Roasters get ahead with this approach.
Navigating New Trends - Why Cafes are Rethinking Coffee Equipment Procurement:
In an industry where sustainable cafe practices are increasingly valued, the traditional “Free On Loan” (FOL) model is losing its charm. For years, FOL was a differentiator for roasters, a tool to cement loyalty among cafes. However, this once unique offering has become a standard, blurring lines and creating a homogenous market. As cafes focus on creating great experiences and quality coffee, the need for quality equipment is paramount, however the FOL model has its limitations. Enter Counting Beans Capital—a funding solution that supports mutual growth for cafes and roasters without the constraints of traditional FOL.
Understanding the 'Free on Loan' Pitfalls: Nothing is really free in business, especially not top-quality coffee machines. With FOL, cafes often end up paying more for their coffee beans to cover the cost of the 'free' equipment, even if they don't use a lot of beans. This can lead to paying too much and never really owning the equipment. On the other hand, coffee suppliers risk losing money if cafes don't use the predicted volume of beans. This creates a tricky situation where both sides may not benefit equally.
Counting Beans Capital, A Strategic Alternative: Counting Beans offers a transparent, tax-deductible monthly rental for coffee equipment. Cafes and suppliers escape the FOL cycle with this approach. Cafes get more choice, flexibility, and even have the option to own the equipment later for a small fee. This method is upfront about costs, offering a simple monthly payment and its beneficial for both cafes and suppliers.
Strategic Advantages for Roasters and Cafes:
For Roasters:
Immediate Profits: Convert upfront costs into instant profits when you source and supply the machine for your café partner.
Freedom from FOL Cycle: Move away from the burdensome cycle of providing equipment and managing payback on capital.
New Negotiation Opportunities: Engage in more flexible agreements with cafes, focusing on bean prices without worrying about recouping equipment costs.
Advisory Role: Be positioned as a business advisors by offering alternative solutions for you cafes partners to consider.
Efficient Equipment Management: Streamline inventory by removing older, less efficient equipment from the fleet of machines you support.
For Cafes:
Transparent Bean Pricing: Enjoy clear and straightforward pricing from your Roasting partner on the coffee beans.
Predictable Monthly Costs: Plan budgets better with consistent monthly equipment rental fees.
Tax Benefits: Take advantage of tax deductions on the monthly rental expense.
Potential Equipment Ownership: Have the option to own the equipment at the end of the rental term for 3 additional monthly payments or choose to upgrade and go again.
No Large Upfront Investment: Avoid the burden of large initial expenses or large balloon payments.
Take control and see the change: Moving away from the traditional “Free on Loan” approach is more than just a change in how cafes pay for their coffee equipment; it's about reshaping the relationships within the coffee industry. By choosing to finance their equipment, cafes and roasters are stepping into a future where they both can thrive.
Here's why this shift is so beneficial:
• For Cafes: You get more control over your costs with clear, predictable monthly payments. Plus, there's the option to own the equipment eventually, turning your rental into an investment if that's what's best for your business at the time.
• For Roasters: It's a smarter financial move, turning what used to be a big upfront cost into a potential upfront margin. Plus, they can focus on the core business of supplying beans without the extra worry of covering equipment costs.
• For Both: This approach leads to clearer, more transparent pricing and a healthier business relationship. It's a win-win where both sides understand and appreciate the value they're getting.
By teaming up with Counting Beans Capital, cafes and roasters are planting the seeds for a more profitable future. It's a smart move for anyone in the coffee business who wants to have the equipment they want, keep costs to a minimum and support a productive partnership between the roaster and the cafe.
Go the smarter way today: Interested in how Counting Beans Capital can help you? Get in touch today. Not ready to chat, but interested to know how much it will cost. check out our online calculator and learn how easy and cost effective it can be.