What to Watch Out For In Coffee Contracts

For many businesses, choosing the right coffee machine is just the beginning of the process. Once you’ve found the perfect solution, it’s time to dive into the often confusing world of coffee contracts. Unfortunately, not all contracts are the same, with many containing common pitfalls that lead to unexpected costs and frustrations down the line. Without the right knowledge, you could find yourself locked into long-term agreements with hidden fees, restrictive clauses and equipment that no longer meets your team’s needs.

We have put together some useful tips to help you navigate the ins and outs of coffee contracts, including the common pitfalls to watch out for and what to look for in a good contract that will help keep your business running smoothly without the hidden surprises.

The Common Pitfalls: What to Watch Out For

One of the most common issues faced by businesses when signing coffee contracts is how suppliers structure their agreements, particularly regarding their service offerings and equipment. Many contracts have separate agreements for the equipment and the maintenance package, each with its own termination clause. This means that if you want to end your contract early, you may face expensive penalties because the agreements are not aligned. This often comes as a surprise to the user as it is a hidden clause and can become an even bigger issue if the equipment in place no longer meets business needs, but is still locked into an expensive maintenance plan.

Another area where businesses often find themselves stuck is with the contract’s length. In some cases, suppliers will offer coffee machines with a 75-month contract, even though the expected lifespan of the machine is closer to 60 months. This is a classic case of being tied into a long-term agreement that outlasts the useful life of the equipment. This situation leads to businesses paying for outdated machines and additional repairs well beyond their expected lifespan.

Finally, maintenance agreements can often be a grey area in many contracts. While some suppliers advertise comprehensive service packages, there are a lot of hidden details. It’s important to be clear on what exactly is covered. For instance, a supplier might tell you that your machine is covered under a maintenance agreement, but what happens when something goes wrong? If the issue is classified as “client-caused”, even if it’s a minor fault or issue caused by wear and tear, you may still be hit with hefty call-out fees and repair costs. Transparency around what’s included in a maintenance agreement is essential, so make sure to ask about things like labour, parts, and emergency callouts.

What to Look for in a Good Coffee Contract: Key Questions to Ask

To avoid the common pitfalls mentioned above, it’s crucial to ask the right questions before signing a coffee contract. Understanding the terms in full can save you from expensive surprises later on. Here are a few key questions to ask your supplier:

• What does the maintenance package include? A good supplier will be upfront about the maintenance and service included in the contract. Ask specifically about labour, parts, and call-out fees. Do they cover repairs for both minor and major issues? Are there any exclusions you should be aware of?
• What is the expected lifespan of the equipment? Make sure the length of the contract aligns with the expected life of the coffee machine. Don’t commit to a 75-month agreement for a machine that’s only built to last 60 months.
• Are consumables locked into the contract? It’s important to know whether you’re tied into purchasing consumables from the supplier or if you have the flexibility to source them elsewhere. Ask if there’s a consumable commitment and what the pricing structure looks like.
• What are the termination clauses? Are the equipment and service agreements tied together or do they have separate termination clauses? Understanding the exit process is crucial to avoid being locked into paying for a service you no longer need. Make sure you have a clear understanding of the penalties involved in terminating the contract early.
• How does the supplier handle upgrades and replacements? Will you be able to upgrade your equipment before the end of the contract if you need to? If your needs change or technology improves, it’s important to know whether the supplier will offer you an upgrade or replacement as part of the agreement.

What Makes Liquidline’s Contracts Different?

At Liquidline, we believe that transparency, flexibility, and customer-first solutions are essential for building long-term relationships with our clients. Our contracts are straightforward, with no hidden fees or surprise charges. We offer a range of maintenance packages including ones that cover all labour, parts, and callouts, so you’ll never be hit with unexpected repair costs. Plus, our machines are selected based on the specific needs of your business, ensuring that you won’t be locked into outdated equipment.

One of the key benefits of working with Liquidline is that we do everything in-house. We have a team of expert engineers who are directly employed by us, so you can be sure that you’ll receive quality service whenever you need it.

Additionally, we offer clear and concise terms when it comes to contract duration. You’ll never be stuck paying for equipment that’s no longer suitable for your needs. If your business evolves, we’ll work with you to find the right solutions and make necessary upgrades as your requirements change.

How to Make the Right Choice

Understanding the ins and outs of coffee contracts is essential to ensuring that you get the best value for your investment. By asking the right questions and being aware of common pitfalls, such as staggered agreements, long contract terms, inflated consumable prices, and unclear maintenance packages, you can avoid getting trapped in unfavourable contracts that drain your business’s resources.

When it comes to coffee solutions, it’s important to partner with a supplier that values transparency and offers flexible, customer-centric terms. At Liquidline, we make sure our clients are always in control, with clear agreements that are designed to save you money, not lock you into a long-term burden.

If you’re ready to find a coffee contract that truly meets your needs, contact us today. Our team is here to provide the guidance and support you need to make an informed decision that will benefit your business for years to come.