Penny Wise, but Pound Foolish

Am I getting the most value for my money?

Staycold pride ourselves in supplying products that are designed and built to a specification. A specification that withstands the challenging African environment. Offering market leading efficiency and reliability, often confronted with the question… PRICE!?
Although an important consideration, it should never be the decisive factor on which the overall purchase decision is based.

Lack of knowledge in the market leads to disappointment in the original purchase decision sooner rather than later.

But why?

A beverage cooler is often seen as a grudge purchase for most buyers. Something that will assist in selling more products to their clients. As a result, the purchase price is paid more credence. As is the idea is to have as many coolers as possible for as little outlay as possible.

This kind approach often results in disappointment. The sweetness of low purchase price draws buyers into a repeating cycle of buying unreliable and cheap refrigeration units. They consume more electricity, break more easily, and with repair bills and loss of sales from downtime bringing a very nasty reality.

The same is said for larger operations buying units for trade marketing purposes. Often asked to not only match the price of a competing cooler, but to include an extended warranty on the compressor. Resulting from their currents suppliers’ compressors failing at an alarming rate.

The reason for these failures? A unit that is simply not designed to meet the demands the customer has for it.


So how do we fix this?

Start looking at the total cost of ownership of your commercial refrigeration. Not just the purchase price, but the cost impact of owning a unit over a 10-year period. Include factors like electricity consumption, reliability, durability and performance. Considering these items, the bigger picture starts to make sense.

You can buy a cheap cooler for up to R 5,000 less than a Staycold unit. But bare in mind, such a cooler can cost you over R 3,000 more in electricity every year to run. Generally accepted that about 55% of a retail stores’ overhead costs, are refrigeration related.

A cheaper cooler with lower specification will struggle to cope with the demands of the African heat.

It all adds up

Over working a unit takes its toll on the various critical parts in the unit. A result of money not being spent on self-protection in the design of the unit causing them to fail. A fan motor here, a compressor there – it all adds up. Initially the owner might be fortunate enough to have one bill covered under warranty. But for the remaining years, repair costs can vary from R 1,500 to R 5,000, falling onto the owners responsibility.

Reality is, the original intent of generating revenue from the cold products sold from the cooler translates into lower revenue. Some of which cannot even cover repair expense. For example: An average of 200 cans of cold drink, each at R20, can be sold in a day. Your cooler fails and is out of action for 2 days… this alone calculates to another R4 000 loss.

The larger customer who buys these units for trade marketing purposes, has the relief that they will not have an electricity bill to pay. But will soon be cold comfort once they have multiplied the repair costs and loss of sales, by the number of coolers in your fleet.

Get in touch

Further engage with us on the info above. We encourage you to ask us about how we are limiting our impact on the environment. Not just from an efficiency perspective, but also in the materials we use. Staycold are more than able to answer questions on how to better optimise the asset management of your fleet through our IoT options. Allowing you to understand where your assets are in real time. And enabling you to schedule maintenance and possible repair work proactively rather than reactively.

Give us a call on: +27 (87) 808 0951
or submit any questions at: