Our goal at Easy Ice is to offer a commercial ice machine program that provides the best value to businesses that need ice.  The phrase “best value” can mean a lot of different things, so this page provides a lot of details about how we – and our customers – think about what “best value” means when dealing with commercial ice machines.

The three components of value we discuss are:

  1. Economic/Financial
  2. Time
  3. Focus & Predictability

Economic/Financial

The economics of ice machines are interesting, because the purchase price is only 13% of the lifetime costs of ownership.  Since 87% of the costs are spread out over time, we calculated the impact of the following two factors:

  1. Time value of money – the financial benefit of delaying payments
  2. Inflation – the likelihood costs will increase over time.

There are a number of other assumptions we made, which are spelled out at the bottom of the analysis.

Time

When considering the best value in commercial ice machines, it is important to account for time spent selecting equipment, managing the scheduling of maintenance and filter replacement, along with the hassles of the unscheduled events that cause repairs, backup ice and general disruption.

We did not attempt to determine a value for you and your staff for this benefit, but estimates from our customers suggest we save them 5-10 hours per year.  At the low end, that is 50 hours saved over a 10-year period.  At $50/hour, that suggests an incremental benefit of $2,500.

Focus & Predictability

Hoshizaki ice machinesThis final benefit is not as tangible as Time and Money, but our customers tell us that this might be the most important.  Easy Ice allows the ice machine to stay right where it belongs – in the background, doing it’s job day in and day out.

All businesses are unpredictable, which is why the best value in a commercial ice machine to our customers is the peace of mind to count on the output of the machine and the fixed monthly payment.  Reliability and Predictability affords them the luxury of forgetting about the ice machine and paying attention to their customers.

Summary

It is impossible to get agreement on the exact costs for owning an ice machine.  That’s okay, because our calculations are about helping you make a decision – they are not about mathematical precision.

We can’t predict what it will cost to own an ice machine for the next 10 years, nobody can.  Rather, our goal is to show that no matter which solution you choose, you should expect to spend between $25,000 and $27,000 over the next 10 years.  And while a $1,000 swing sounds like a lot of money, it boils down to $0.27 per day – before tax.

Whether it is worth the hassle of owning an ice machine for the chance to save (or lose) a quarter a day is an individual decision.

Easy Ice customers believe the best value in commercial ice machines means turning their most unreliable piece of equipment into a predictably performing asset so they can get back to doing what they do best.

 

OwnershipSubscription
Cost% of Total Ownership CostCost
Purchase/ship/install vs. Set-up Fee$3,35013%$258
PM & Filter Cartridges$5,09020%Included
Repair Parts & Labor$4,29916%Included
Back-up Ice$1,5006%Included
Energy$11,43144%$11,431
Monthly SubscriptionN/AN/A$15,480
Equipment Removal$3001%Included
Inflation$987N/AN/A
Subtotal$26,957100%$27,169
Depreciation and Tax Savings($10,206)
N/A($10,678)
Subtotal Out of Pocket Costs$16,751N/A$16,491
Time Value of Money($5,505)N/A($6,289)
NPV: Actual 10 year cost (15%)$11,246$10,202

Key Assumptions:

  1. Machines will be cleaned 2x per year
  2. Tax rate is 39.3%
  3. Discount rate is 15% (this applies to the time value of money calculation)
  4. Costs increase 2.5% per year.
  5. Repair costs are based on a study of 10,000 ice machines over a 15-year period.