Office coffee service pricing

The general rule of thumb for office coffee service pricing is $60 to $120 per employee per year. You must be comfortable with these costs to determine if it's right for your business. The last thing you want is to take the perk away from employees because you discover you really can't afford it. Take a look at prices for office coffee services as reported by other BuyerZone users to get an idea of what other businesses are paying.

The cost for office coffee service comes primarily from the actual beverages. A case of 24- or 48-count pre-ground coffee bags (1.75 or 2.2 ounces each) costs about $20 to $40 per box. Expect to pay more for larger quantity cases or premium coffee blends. Cases of individual Frac Pacs for single-cup brewing systems can range from $30 to $60 per 42-count case.

Expect to pay about $5.00 for a 24-count box of assorted teas or 100-count box of regular or decaffeinated tea. A box of hot chocolate costs $10 to $15 depending on the quantity. Cases of instant soup can range from $10 to $50.

Consumables may be included as part of your office coffee service agreement, but if they aren't, the additional cost is minimal. Small quantities (50- to 250-count) of cups, lids, creamers, stirrers, sugars, and artificial sweeteners will cost an extra $5 to $20 per month. Expect to pay more for larger quantities (250-count and more).

You can also get competitive pricing on supplies such as napkins, tissues, plastic cutlery, first aid items, or even over-the-counter medicines. Prices for paper products can range from $15 to $100 or more, depending on quantity. Medicine prices can range from $5 to $20, depending on the quantity and brand. Expect to pay anywhere from $5 for a 100-count box of adhesive bandages to $50 for a first-aid kit.

Most office coffee service vendors include shipping or delivery charges as part of the service. If applicable, these fees can be either a fixed dollar amount or a percentage of the total amount spent for the month. If you want a special order outside of your typical order day, you will pay a nominal charge for shipping.

If you don't commit to purchasing a certain amount of coffee each month, you may be able to rent the brewing equipment for $40 to $50 per month. Check with the individual office coffee service vendor to see if rentals are offered and if the monthly fees also cover regular maintenance.

Contracts
Some office coffee service vendors may require you to sign a contract to get service. The contract details the equipment, products, and delivery terms for the duration of the contract, usually one year. The agreement automatically renews unless you cancel it, and you may have to pay a penalty if you cancel service before the year is up.

However, most office coffee service vendors don't require contracts because they know customers dislike being locked in to long-term agreements. Instead, vendors require minimum orders each month to keep the equipment. Minimum orders will vary significantly from vendor to vendor. Some vendors consider one case of coffee to be the minimum, while others require specific dollar minimums of $50 to $100 or more. If you don't reach these minimums each month, you may be charged a fee; in some cases, the vendor may cancel your service altogether.

Some vendors don't require a contract or minimum orders. They do still need you to have a certain number of employees regularly using their products to be assured that your orders will justify the cost of sending a delivery technician to your office.