WQA 2010 Grow Your Business With Ice

WQA – AQUATECH USA 2010

IceThe next level in office

water service

Michael RiceFollett Corporation


What is ice?

Frozen Water


Why consider ice?

• People like ice• Ice can contribute to health and wellness• Ice increases capacity for chilled water• Ice can make you money


People like ice…• Americans consume a lot of ice

– More than 250 billion pounds of ice used in the U.S. each year

– Over half of U.S. offices have ice

• More than ½ the population likes to chew ice

• People prefer soft, chewable ice


The health benefits…• Ice promotes better hydration

– Good hydration is associated withimproved mental acuity and productivity

– Chilled, filtered water tastes better– Water stays colder longer with ice– Higher water consumption and better

hydration is more likely with ice

• And fitness– Metabolizing 8 glasses a day of chilled water

consumes the calorie equivalent of 3 - 4 lb. per year


More chilled water…

• The availability of ice can increase the amount of cold water that can be supplied– Solve the problem of running out at break

time and other key periods– Increase employee satisfaction since ice keeps

drinks cold, longer


Make more money…

• Rental income from a premium product• Ability to support complementary products

– Iced coffee – Iced tea– Flavor packets


Ice in offices today• Refrigerator freezer icemakers

– Small capacity– Sanitation – ones with ice dispensers are better

• Undercounter icemakers– Installation and maintenance issues– Sanitation – who/what has been in the bin??


Ice in offices today• Countertop icemakers – Pour over or plumb in

– Inexpensive, a few hundred dollars– Low capacity – Sanitation concerns (most are manual scoop)– Need good, low TDS water

• Icemakers on bins– Big, bulky, unattractive– Sanitation


A new choice• Ice (and water) dispensers

– High quality commercial grade appliances

– Capacities to serve up to 350 people

– Available as ice and water or ice-only

– Same types of filtration available


Ice & water dispenser attributes• Sanitation – hands-free dispensing

– Lever, button, touch-less infrared

• Convenient installation and maintenance– Some won’t even require a drain

• Energy and water efficient – Better than typical cube icemakers

• Consumer preferred chewable ice• Premium product - $2,000 and up

– Will require some creative thinking


How to make money with ice (& water) dispensers

• Sell an upscale “water and ice” program– Same “green” and operating benefits as POU coolers – Ice and water or Ice-only to complement water cooler

• Sell the ice– An amenity that people want– Ice can provide additional incentive to switch

• Sell safety and sanitation• Sell additional product offerings

– Iced coffee, iced tea, flavor packs


Rethink metrics• The traditional 10 - 12 month payback won’t work

– New thinking is required to get a monthly payment that will fit in a “good, better, best” offering

• Amortize over the warranty period (typically 2-3 years)– Customer monthly payments can be as low as $100 - $125/mo

• Finance purchase to match payment to revenue stream• Don’t forget margins from ancillary sales

– Margins of complementary products help justify the investment


One more opportunity for ice

• Automatic ice dispensing for facilities with central dispatch– Fast, safe, sanitary, high capacity


Summary• Ice provides an opportunity to expand revenues

• New approaches to providing ice for the office make it easier and more convenient and bring a new set of values to your customers

Turn your Office Water program into an Office Water and Ice program

WQA 2010 Grow Your Business With Ice

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