Are you paying too much for ice?

Everyone is buying ice; here’s why you shouldn’t

Do you buy ice for your business? Many business owners believe that buying pre-bagged ice is the solution to their problems. They think that commercial ice machines are only for restaurants, hotel chains, hospitals and the like, but many do not realize the benefits of owning and operating their own ice machine that can scale up or down to business needs, and potentially save hundreds on ice purchases.

Most ice makers stand vertically and can make large quantities of ice in a short period of time. A water pump at the back of the unit, which is hooked up to a water source, pumps water into the machine and it is formed into ice cubes, pearls or flaked ice. They come in different sizes and have different output volumes depending on the demand for any size business.

To put things into perspective, often when landscapers or contractors go out for jobs, they usually pick up a few bags of ice per day for their respective crews. Let’s say that each bag of ice costs around $3 and they are buying an average or 4 bags a day, 5 times a week. When you add that up per month it’s $60. Yearly, that adds up to $3100— and that is just for one crew . What if that company has several crews that require ice to fill their employees needs out in the field? You can see how this number can easily double or triple.

Think about state parks or campgrounds that offer bagged ice to those in need at a minimal cost. Some of these organizations are still buying pre-bagged ice from other sources to keep it in stock. What if that same organization purchased an ice machine and bagged the ice themselves? How much headache could that potentially alleviate?

Although purchasing an ice machine is a big investment at first, it may very well pay dividends down the road. There is another option to buying an ice machine outright, and that is leasing. Depending on a business’s demand, either one of these options could prove more economical than buying pre-bagged ice.

Manitowoc representative Junior Toler explains, “I was at a Kroger recently and met a guy from a paving company who came to get two bags of ice and said he would return for two more bags of ice in the afternoon to keep the water cold for the team, and this company had 25 trucks, each buying $10 a day worth of ice…That’s $250 a day.”

Imagine what that adds up to in a month; well over the price of an ice machine that can be housed in a central HQ location where the ice can be bagged and dispersed accordingly. It can help to save time and money and get workers to the job site more quickly.

Of course, any organization that intends to produce bulk ice and bag it with the intention to resell is subject to inspections and regulations per your state health department.

Other businesses that might benefit from having an ice machine in-house are:

• Hospitals
• Convenient stores
• Marinas
• Painting/Construction
• Movie production companies
• Farmers markets
• Mom and pop stores
• Schools and universities
• Churches
• Butcher shops
• Corporate offices
• Campgrounds

How much does it cost to own an ice machine?

The pros at ACityDiscount recommend the average ice machine for any business serving 100 people or less should be at least a 500lb ice machine. An ice machine of this size costs anywhere between $2k to $4k, give or take certain features.

For any organization serving more than 100 people, the average recommended size is 520lb, which means that it makes that much ice within a 24-hour period. The recommended machine for this job is the Manitowoc Indigo NXT 30" 520lb Ice Machine Head & Bin Combination. This machine makes cubed ice, features a 30”W x 24”D bin, and stands vertically at 21.5” high. The Indigo NXT is a high-performance ice machine that uses low energy and features a digital display system that is easy to use and comes with intelligent diagnostics for preventative maintenance. It can sense when it is time for the machine to be cleaned, which can be achieved with the touch of a button. It uses proprietary technology that inhibits the growth of bacteria within the food zone (ice bin), which also keeps the machine cleaner for a longer period. The NXT series also features programmable ice production, so during any slow seasons or downturns, the machine can be programmed to make less ice to suit business needs.

When you purchase any ice machine, it is important to use a water filter. These are critical in making sure your machine not only produces the freshest, cleanest-tasting ice, but also that it runs efficiently and doesn’t use more energy than necessary.

Purchasing an ice machine may seem like a huge investment, and although it could pay for itself in 6 to 8 months, many may not have the capital to make an outright purchase. In this case, there are leasing options available for those who qualify. With this option, you can choose the length of time you want to pay for the machine. For example, a 36-month lease on a high-capacity ice machine will run anywhere between $280-$300 a month, which may be a better option for some who are still buying bagged ice.

Advantages and disadvantages of leasing an ice machine:

Leasing an ice maker can be advantageous if you do not have a lump sum to buy a machine outright.

When you lease, you can upgrade to newer models as needed and most times, your maintenance is included in the lease. So that means if the unit breaks down or experiences normal wear and tear, the leasing company has the obligation to fix or replace the machine. Additionally, you can choose the number of payments that will be made over the lease period and budget for it accordingly— giving you the opportunity to focus on your business.

All of this may sound great at first glance, but it is important to keep in mind that when you lease, you are likely to pay higher costs than what you would’ve paid if you just bought a good machine. Often, lease agreements are strict on what they offer so it’s important to read the fine print before entering any contract agreement. For instance, you may be stuck with an equipment model for longer than you care to because of the lack of availability with some ice machine models. Additionally, it can be difficult to get machine parts fixed because there are discrepancies about what the company is responsible for.

Advantages and disadvantages of buying an ice machine:

When you buy an ice maker, you have total ownership, which is great. This means that you can easily make modifications whenever you need. With ownership, you are also responsible for repairs and maintenance and can have problems fixed within a short time. You also have equity, so if at any point you want to upgrade your equipment, you can easily sell the outdated model to a used equipment supplier like ACityDiscount. So, if you run a small operation, you could start with a smaller ice machine and potentially upgrade.

Buying negates the need to deal with contracts and agreements and allows you to choose the product that is best suited for your needs. Also, you can choose an option that is more economical than the sum of all the bags if ice you would use in a year.

The downside to buying an ice maker is that you need to have a bigger budget up front, as opposed to having just enough to make monthly payments. Buying the exact model you want could put a strain on your budget with higher-priced brands, so you may be forced to opt for a lower-cost model. Our experts here at ACityDiscount are great at helping customers find what they need at a lower price point. Also, our used equipment goes through a tough inspection process to ensure that it is in optimal shape for reuse.

Looking for the right ice machine for your operation? Our representatives are more than happy to help you through the first-time buying experience or deciding on an upgrade. Stop by our Norcross, GA showroom or give our sales team a call today at 404-752-6715, ext. 2.