New rental agreements

AKVA group - Nordic introduced a new procurement model at the end of 2014 that involves renting out products and systems to customers in the aquaculture industry.
2015-new-rental-agreementsImage: Feed Systems

A press release sent out early 2015 stated that the new model allows customers to move costs away from investment budgets and over to operational budgets.

So far the new concept has been well received, as everyone expected. AKVA group Scotland has already been offering rental agreements for several years, and this procurement model now form a significant part of their total turnover. 

“The Nordic model is based largely on experience from the UK, and we have already signed 12 contracts worth about 30 million NOK since we started at the end of last year”, says Frank Jørgensen, a very pleased Rental manager. “Right now there is a great deal of interest in the market for rental agreements and I think the interest will grow”, he continues.

For business-crucial operational systems, regular maintenance and systems for service and follow-up is critical. This rental model will ensure stability, maximum uptime and safeguard customers operations. “Our goal is to maximise
profit by increasing utilisation of AKVA group products and equipment”, Jørgensen explains.

Underwater Light Systems

Camera Systems

AKVA group has a very skilled and experienced service network along the Norwegian coast. There will always be a service technician less than six 6 hours away. “Our rental agreements allow our customers to focus their attention on feeding fish, while we make sure that the equipment is continuously performing”, Jørgensen continues.

All contracts run over a specified contractual period based on a fixed monthly rental price. The price includes installation, service and 24/7 support. This type of agreement has no establishment fee and requires no deposits. The price is the same for all customers, no matter where they are located in Norway.

“In other words, there are no hidden costs and the customer get better cost control of their operations”, Jørgensen says. He emphasizes that the model allows customers to purchase larger deliveries within operational budgets instead of always relying on large investment

AKVA group offer rental agreements on camera systems, lighting systems, mort handling, net cleaning systems and feeding systems. The term of the contracts varies slightly depending on product. Cameras and sensors are typically rented out for 2 - 5 years, while feeding systems can be rented for 4 - 8 years. Certain products are also available for short-term rental. “Long term, if the rental model turns out to be the success we believe it will be, we will most definitely look into the possibilities of expanding the procurement model to include larger technological solutions”, Jørgensen.