2 Waterlogic Empowers You to… Save Money on workplace drinking waterPay 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) bottlesDisruption 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 waterUse the water supply to your building,why pay extra to have water trucked in?
3 POU: Better than bottles. Opportunity CostPositive environmental effectsReplacing 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.Direct Visible CostPossible direct saving against bottled water costs..Additional “less visible” costsAdministration costHealth & Safety risksStorage Costs, Security and disruption, Staff Welfare
4 Cost Saving Course...Direct costof each bottleAdministrationof Bottled WaterHealth & Safety CostsSecurity anddisruption costsStaff Welfare risksStorage CostsCorporateimage risksOne regular Monthly fee with POU, can often be cheaper than your total monthly cost of bottled waterSimple invoicing, simple pricing structureOne regular Monthly fee with POUSimple invoicing, simple pricing structureSwitching to POU improves corporate image
5 Cost Savings Calculator Model How to estimate your total acquisition costfor 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(=B)How many 18 liter (5 gallon) bottlesdo you consume per month?During the “cold” months(=x)During the “hot” months(=y)Then take an average of x and y(=C)What is the cost per bottle consumed?(=D)Headline annual cost = (A x B x 12) + (C x D x 12)(=X)ESTIMATING THE ADDITIONAL COSTS:Invoice processing costsResearch shows this can be any figure between $10 and $100(=E)Health & Safety risk costsCan be any figure between 3% and 15% of total Bottled water spend(=F)Storage CostsCan be any figure between 0% and 10% of total Bottled water spend(=G)Security and disruption costs(=H)Damage to corporate imageCan 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
6 Cost Savings Calculator Example Major corporate HQHow many bottled water coolers do you have?61What is the monthly rental fee and/or sanitization cost of each bottled water machineHow many 19 liter (5 gallon) bottles do you consume per month?During the “cold” months (organisation reported 5 per cooler per MTh)305During the “hot” months (organisation reported 11 per cooler per MTh)671Then take an average of x and y488What is the cost per bottle consumed?$6.50Headline annual cost = (A x B x 12) + (C x D x 12)$38064ESTIMATING THE ADDITIONAL COSTS:Invoice processing costsOrganisation reported invoice process $70, and they received 24 invoices p.a.$1680Health & Safety risk costsOrganisation estimated the H&S risk/claims at 5% of the above headline cost$1903Storage CostsOrganisation estimated storage space that could be better 10% of headline cost$3806Security and disruption costsOrganisation estimated security and disruption 3% of headline cost$1142Damage to corporate imageOrganisation estimated positive corporate image 20% of headline cost$7613TOTAL OF THE ADDITIONAL COSTS = (E+F+G+H+I)$16144TOTAL ANNUAL COST OF BOTTLED WATER = (X+Y)$54208Hence historical cost per cooler, per month was $74. Waterlogic was able to provide a saving.
7 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.
8 What our Customers SayTommy 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.”
9 Thrown in the Towel THEODORE ARGYRIOU CHAIRMAN MAIN BOTTLED WATER OPERATOR IN GREECEFrom a speech delivered at European bottled water association conference - Oct 2008“POU proves to be the cheapest way to provide excellent hydration”
10 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”.“Mains fed water coolers are the best option for saving money. Bottle fed machines can cost healthcare providers aroundGBP £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, removethe health and safety concerns regarding the lifting and changing of replacement bottles and save the inconvenience of storing them.”
11 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.
12 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.
13 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”
14 Local Govt. Sees the Light New York City may close tap on bottled waterlNovember 30th, 2008New 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, 2008ISLINGTON 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?”
15 Breaking the Bottled Habit ENVIRONMENTAL WORKING GROUP“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 FerrierBuying 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.
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