Thursday, January 13, 2011

Cost of Ownership Comparison between Mains-Fed and Bottled Water Dispensers


While there may still be some situations where a Bottled Water Dispenser is ideal (e.g. where there is no access to mains water, or in a Portacabin where plastic pipes could freeze and split during the winter) there is little justification. Just to emphasise the point here is a simple cost comparison between the two different types.

The numbers are typical industry averages and aren’t based on any particular model or manufacturer.

Let’s use the example of an office with 20 employees:

Assumptions

  • Each Water Dispenser will serve 20 employees
  • Bottled water is supplied in 19 litre containers
  • 10 employees consume approximately 1 bottle per week
  • Rental and sanitisation cost of a typical bottled Water Dispenser              £ 84.00
  • Number of 19 litre bottles per week (based on 10 employees per bottle)             2
  • Typical cost of bottle     £ 5.50
  • Cost per litre of water on metered supply                                                    £ 0.0013
  • Premises on a Water Meter (worst case scenario)


Therefore:

Bottled Water Dispenser Cost
Total Cost for water supplied in bottles in a year = £ 5.50 x 2 x 52 = £ 572.00
Total Cost for Water Dispenser and water in First Year = £ 84 + £ 572= £ 656.00
Total Cost for Water Dispenser and water over Three Years = £ 1968.00

Mains-Fed Water Dispenser costs:

Installation Cost      FREE
Annual rental and maintenance cost £ 312.00
Cost of water from metered supply = £0.001 x 2,000 litres =    £ 2.00
Total cost for Mains-Fed Water Dispenser in First Year £ 314.00
Total Cost for Mains-Fed Water Dispenser over Three Years £ 942.00

Now compare the two sets of figures in the Table below:

Bottled Water Dispenser Mains Fed Dispenser

Total Cost for First Year £656.00            £314.00

Total Cost for Three Years £1,968.00      £942.00

Saving - £342 (yr 1)      -£1026 (over 3 yrs)

As you can see, in a three year period, the cost advantage of Mains-Fed Water Dispensers is enormous ! N.B. This doesn’t include the environmental costs of transporting and eventually disposing of over 250 plastic bottles!

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