News Archives| Readers Respond | Submit News | Subscribe to Daily Update | Industry Reports | VMW Blog | Events | For Route Drivers

VendingMarketWatch.com |

Magazine Article

  

Most Read Stories TodayMost Read | Most E-mailed Stories TodayMost E-mailed | Email This StoryE-mail Article | Print This StoryPrint Article | Save Article | License Article [Get Copyright Permissions]
Michael Kasavana By Michael Kasavana
Contributing Editor



Who Pays the Electricity?
Energy efficient machines and energy saving devices bring new customer benefits. Operators should consider who’s responsible for energy costs. The responsibility should be spelled out in the customer contract.



green vending

Introducing more energy efficient machines often requires an additional upfront investment for a vending operator. Some operators have found that this investment is worth making because the savings to the location improve the operator/client relationship.

In many cases, operators have found that offering energy efficient machines helps win business from energy conscious accounts. Environmental awareness is rising among clients.

In some situations, utility companies subsidize the installation of energy saving devices. Automatic Merchandiser has reported numerous instances where utilities and utility consortiums subsidize installation of USA Technologies’ EnergyMiser.

The reason an operator may not be overly encouraged to investigate energy efficiency is that the host location typically pays for the electricity consumed by the equipment. The operator does not pay for the electricity and therefore typically does not have an incentive to seek the most energy efficient equipment.

In cases where the location receives a commission, however, the client may be willing to accept a lower
commission if energy costs are reduced due to
lower usage.

Despite the fact it may be costly or risky to attempt to renegotiate a site contract, the incentive to purchase more energy efficient machines may be facilitated through such negotiations. It is for this reason there is a growing market for energy-efficient machines as environmentally-conscious vending companies push to install more such machines. Additionally, a vending operator may become interested in sharing some or all of the energy costs, depending on his contract percentage share with the site client.

Should there be a provision in a vending contract that delineates responsibility for energy costs? Should there be a split incentive for machine owners and site clients to strive for energy efficiency?

1 2 3 next



[Get Copyright Permissions] Click here for copyright permissions!
Copyright 2010 Cygnus Business Media


Submit a Comment

 
Name: *
Subject:
City, State:
 
 
   
 
For verifcation purposes, please enter the characters you see in the image below
 
 
   
 
   
* = required
(comments will appear after this article, as well as on our Readers Respond Page)