This article outlines the pros & cons for way to receive equipment from Crafty.
Crafty offers a comprehensive range of equipment to our clients
When it comes how we provide equipment to our clients, we know that optionality is key! Different organizations optimize for different things (at different times!). That's why our goal is to give our clients flexibility in choosing the best option for them.
There are three ways we can provide office kitchen and pantry equipment:
- For free under a monthly spend minimum, which is used to ensure Crafty can financially justify purchasing the equipment upfront at no cost to the client
- As a monthly rental under a minimum 1-year term (12-monthly rental payments), where Crafty maintains ownership of the equipment during and after the term
- As a purchase, where the client is buying the equipment outright from Crafty
How does Free Equipment work?
Crafty can provide the equipment at no cost to the client in exchange for a monthly spend minimum in your contract with Crafty.
Each machine is purchased by Crafty, and using the cost of that machine, we know how much we need each client to spend each month in order for us to financially justify providing the equipment at no cost to the client.
Crafty purchases this equipment upfront, and then we are able to justify this upfront investment by requiring a monthly spend minimum proportional to the cost of the machine. The monthly spend minimum covers all pantry spend with Crafty, and you're able to use spend in any location to meet your monthly spend minimum.
What are the pros?
The benefit of the free model is obvious - you can avoid any cost for the equipment itself. You are still committing to this equipment for the 1-year term of our agreement.
Also, the Preventative Maintenance is provided at no charge, as well as any and all issues that qualify under warranty. The only servicing charges the client pays for are filters and the hourly rate for Onsite Services, covering installation and daily or weekly maintenance. For more information on equipment servicing, check out this article.
What are the cons?
The disadvantage of the free model is the minimum monthly spend commitment. We are requiring you to spend that amount each month, and if you do not spend the amount, we will charge you the difference.
Because the equipment was provided for free, there is a larger cancellation fee for early termination. The good news is: the cancellation fee shrinks over time, because we will be effectively covering the cost of the upfront investment as you spend with Crafty, and at the end of the 1-year agreement, you're able to cancel without penalty.
How do the Equipment Rentals work?
Crafty can provide the equipment you need with a monthly rental fee under a 1-year term, which means you are committing to 12-monthly payments during the course of our agreement.
What are the pros?
The benefit of the rental program is you only need to meet our standard $1k monthly spend minimum. You won't need to worry about hitting a monthly minimum beyond that $1k, because you'll be paying a fixed monthly rental.
Identical to Free Equipment, the Preventative Maintenance is provided at no charge, as well as any and all issues that qualify under warranty. The only servicing charges the client pays for are filters and the hourly rate for Onsite Services, covering installation and daily or weekly maintenance. For more information on equipment servicing, check out this article.
What are the cons?
The disadvantage is that (a) you have a rental fee tied for the equipment, and (b) your monthly rental fees would continue in future years of the contract. The early termination penalty is the open balance of monthly rental payments not yet paid under the 1-year term + $5k.
How does Purchasing Equipment work?
Crafty can sell you the equipment you need for your program. Once delivered and installed into your space, you are now the proud owner of some incredible technology.
What are the pros?
The benefit of purchase equipment is flexibility. Similar to the rental program, you only need to meet our standard $1k monthly spend minimum. For this model, early termination is only the $5k figure.
Any and all issues that qualify under warranty will be covered at no charge. The servicing charges you'll pay are for filters, the hourly rate for Onsite Services, covering installation and daily or weekly maintenance, and any Preventative Maintenance kits required to maintain the manufacturer's warranty. For more information on equipment servicing, check out this article.
What are the cons?
The disadvantage is paying an upfront cost for the equipment. We usually only recommend purchasing if you're confident that you'll be staying in a given location for at least a few years.
Can I switch between different programs?
When setting up your program, you are able to mix-and-match! For example, you can choose to rent some equipment, purchase some equipment, and get some equipment for free under a spend minimum.
Also, we can also offer you the flexibility to shift from rental payments to free with a spend minimum (and vice versa). When we do this, it does require an amendment to our contract, which we can spin up fairly quickly, and we can only apply it to future months after the amendment is signed by both parties.