Transcript Waterlogic Empowers You to… Save Money on workplace drinking water Pay one regular fee, no matter of how much water you drink. Avoid Paying.

Waterlogic Empowers You to…
Save Money on workplace drinking water
Pay one regular fee, no matter of how much
water you drink.
Avoid Paying For:
Producing and recycling bottles (inc. landfill tax)
Administration to plan, forecast and order water.
Storage of empty and full (spare) bottles
Disruption from repeated bottle deliveries and
complicated invoices.
Health and safety risks of lifting bottles or drinking
water that has not been purified at the point of use.
DO NOT Pay “double” for your water
Use the water supply to your building,
why pay extra to have water trucked in?
POU: Better than bottles.
Opportunity Cost
Positive environmental effects
Direct Visible Cost
Possible direct saving against
bottled water costs..
Additional “less visible” costs
Administration cost
Health & Safety risks
Storage Costs, Security and
disruption, Staff Welfare
Replacing bottled water with Waterlogic POU units significantly reduces total
cost of drinking to your organization.
Waterlogic products are by nature a cost saving and environmentally friendly
technology replacing bottled water and promoting a positive effect on the
workplace.
Cost Saving Course...
Direct cost
of each
bottle
Administration
of Bottled
Water
One regular Monthly
fee with POU, can
often be cheaper
than your total
monthly cost of
bottled water
Simple invoicing,
simple pricing
structure
Health &
Safety Costs
Security and
disruption
costs
Staff Welfare
risks
One regular Monthly fee with POU
Simple invoicing, simple pricing structure
Storage
Costs
Corporate
image risks
Switching
to POU
improves
corporate
image
Cost Savings Calculator Model
How to estimate your total acquisition cost
for bottled water (and compare with Waterlogic POU)
How many bottled water coolers do you have?
(=A)
What is the monthly rental fee and/or sanitization cost of each bottled water machine
During the “cold” months
How many 18 liter (5 gallon) bottles
During the “hot” months
do you consume per month?
Then take an average of x and y
What is the cost per bottle consumed?
Headline annual cost = (A x B x 12) + (C x D x 12)
(=B)
(=x)
(=y)
(=C)
(=D)
(=X)
ESTIMATING THE ADDITIONAL COSTS:
Invoice processing costs
Research shows this can be any figure between $10 and $100
(=E)
Health & Safety risk costs
Can be any figure between 3% and 15% of total Bottled water spend
(=F)
Storage Costs
Can be any figure between 0% and 10% of total Bottled water spend
(=G)
Security and disruption costs
Can be any figure between 0% and 10% of total Bottled water spend
(=H)
Damage to corporate image
Can be any figure between 1% and 20% of total Bottled water spend
(=I)
TOTAL OF THE ADDITIONAL COSTS
= (E+F+G+H+I)
(=Y)
TOTAL ANNUAL COST OF BOTTLED WATER = (X+Y)
(=Z)
CURRENT COST PER COOLER / MTH (For comparison to Waterlogic monthly rental fee) = (Z / A / 12)
See worked example overleaf
Cost Savings Calculator Example
Major corporate HQ
How many bottled water coolers do you have?
What is the monthly rental fee and/or sanitization cost of each bottled water machine
During the “cold” months (organisation reported 5 per cooler per MTh)
How many 19 liter (5 gallon)
During the “hot” months (organisation reported 11 per cooler per MTh)
bottles do you consume per
month?
Then take an average of x and y
What is the cost per bottle consumed?
61
0
305
671
488
$6.50
Headline annual cost = (A x B x 12) + (C x D x 12)
$38064
ESTIMATING THE ADDITIONAL COSTS:
Organisation reported invoice process cost @ $70, and they received 24 invoices p.a.
Invoice processing costs
$1680
Health & Safety risk costs
Organisation estimated the H&S risk/claims at 5% of the above headline cost
$1903
Storage Costs
Organisation estimated storage space that could be better used @ 10% of headline cost
$3806
Security and disruption costs
Organisation estimated security and disruption costs @ 3% of headline cost
$1142
Damage to corporate image
Organisation estimated positive corporate image value @ 20% of headline cost
$7613
TOTAL OF THE ADDITIONAL COSTS
= (E+F+G+H+I)
TOTAL ANNUAL COST OF BOTTLED WATER = (X+Y)
$16144
$54208
Hence historical cost per cooler, per month was $74. Waterlogic was able to provide a saving.
Cost Savings continued:
Corporate Office in Denmark
of a major consumer electronics corporation:
Were buying small pack water for 1000 staff and
visitors.
Total spend was $192K p.a.
Waterlogic provided 34 cold/sparkling machines
providing a direct saving of c.$156K p.a.
The organisation also valued the major reduction in
disruption from deliveries and recycling of water
bottles and also positive corporate image effect
from reducing their bottled water usage.
What our Customers Say
Tommy Gargas of Borup Kemi, Waterlogic Denmark customer
“We had great logistical problems in taking delivery and returning both soda and
spring water bottles.
Now we can forget all that hassle, whilst also saving us money.
Before we paid 3 to 4 million DKK each year for our drinks.
Now we pay something like 10 cents for a glass - and we get water that tastes much
better.”
Thrown in the Towel
THEODORE ARGYRIOU
CHAIRMAN MAIN BOTTLED WATER OPERATOR IN
GREECE
From a speech delivered at European bottled water
association conference - Oct 2008
“POU proves to be the cheapest way to provide
excellent hydration”
Medical Benefit and Cost Saving
The UK Royal College of Nursing as part of their drive to increase
hydration of hospital patients, advocate POU machines in their
“TOOLKIT” - “WATER FOR HEALTH”.
http://www.rcn.org.uk/newsevents/campaigns/nutritionnow/tools_and_resources/hydration#Download
“Mains fed water coolers are the best option for saving money.
Bottle fed machines can cost healthcare providers around
GBP £6 for each 19 litre bottle or around £1000 each year to run
each machine. The equivalent cost of supplying mains fed water
through a cooler would be less than GBP £0.02 for each 19 litres.”
“If you choose to use water coolers, mains fed systems are the most
sustainable. They don’t run out, are more cost effective, remove
the health and safety concerns regarding the lifting and changing
of replacement bottles and save the inconvenience of storing
them.”
Simple, Uncomplicated Invoicing
Do not overlook the cost to an organization of
processing complicated invoices....
The Institute of Finance Management – May 2012
stated:
“Many studies are undertaken to determine what
the average cost is across various organizations. And
while all the usual caveats apply—what was
counted and what was omitted from the
calculation, as well as geographic variations— the
most frequent number that is cited for mid-market
organizations is (drum roll!, please) $22.”
An organization, currently using bottled water will
likely be dealing with complicated invoices involving
bottle deposits.
The Bottle Needs Replacing!
In Feb 2006, an employee at the US Dept. Of Energy
sustained a minor back injury from lifting a 5-gallon
water bottle.
“This seems like it should be a fairly common injury. A
full 5-gallon bottle weighs 48 pounds” and
Procurement’s Bob Johnson noted “we use about 310
bottles per week”.
The department’s deputy head, Randy Ortgiesen,
pointed out that they were likely to discontinue bottled
water use resulting in reduced cost and less risk of
injury.
The Bottle Needs Replacing!
The UK Health & Safety Executive (HSE) recognize that a 19
liter water bottle is over the safe limit for one person to lift,
and that injuries caused by this are one of the causes of
over three-day absences from work.
P.23 of the UK HSE “Inspection Pack – Musculoskeletal
Disorders 2012” states (related to the risk of injury from
lifting water bottles:
“avoid by using piped supply to cooling point”
http://www.hse.gov.uk
http://www.hse.gov.uk/foi/internalops/fod/inspect/msd.pdf
http://www.lboro.ac.uk/admin/hse/policies/download/Drinking%20water%20bottles%20generic%20mh%20ra.pdf
Local Govt. Sees the Light
New York City may close tap on bottled water
http://www.nydailynews.com/ny_local/2008/11/30/2008-11-30_new_york_city_may_close_tap_on_bottled_w.htm l
November 30th, 2008
New York City Council will stop city its agencies from buying bottled water and water
coolers for workers.
The city spends $2.1 million annually on bottled water, according to the Department of
Citywide Administrative Services.
Councilmen Eric Gioia noted that the move would also save on storage and disposal
costs and help the environment by reducing waste and truck traffic for water-delivery
services. Councilmen Simcha Felder has already installed a heating and cooling filter in his
office this year, which he said was a more economical choice.
London Evening Standard - March 13th, 2008
ISLINGTON council is encouraging its workers to drink tap water. It has banned the sale of
bottled water in staff canteens and shops and will not provide it in meetings, saving more
than £8,000 a year.
Council leader James Kempton said: “What sense does it make to have water shipped
around the world in bottles when we can just turn on the tap?”
Breaking the Bottled Habit
ENVIRONMENTAL WORKING GROUP
http://www.ewg.org/node/27244
“In some cases, it appears bottled water is no less polluted than tap water and, at 1,900
times the cost, consumers should expect better,”
said Jane Houlihan, an environmental engineer who co-authored the study.
WWF commissioned report
“Bottled Water: Understanding a Social Phenomenon” - By Catherine Ferrier
Buying a “Water treatment system” will require an initial capital investment, it can save the
end-user a significant amount of money over the long run. This is even true when
considering maintenance and replacement costs, which are incurred on a regular basis.
Clear?
Just wait till
you taste
our water.