Home > Copier Buying Tips, Copier Leasing, Copier Service Contracts, How to Buy a Copier > Should You Include Maintenance Plan Costs In Your Copier Lease?

Should You Include Maintenance Plan Costs In Your Copier Lease?

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Recently I met with a prospective copier lease customer located here in Baltimore, Maryland.

The company is what I would consider a mid-sized manufacturing business with 200 employees.

They have 3 copiers and 3 large commercial color printers at their facility.

During our initial meeting I asked the CFO of the company how his billing was set up with his current copier vendor and he informed me that everything was included in his lease.

By everything he meant that the copiers, the printers and the maintenance agreement for all of them were all rolled into one lease.

Just to be clear, when I say maintenance agreement/plan I’m speaking of an agreement that covers toner, all service and repairs as well as preventative maintenance. Basically everything except paper and staples for the copiers and printers.

When I asked the CFO if he’d ever considered having the maintenance agreement billed separately from the lease he looked puzzled.

I explained to him that he was paying interest/leasing fees on the maintenance agreement and that he really didn’t have to do that.

I further explained that all copier companies will bill you separately for your maintenance agreement and that keeps you from paying leasing fees on your copier maintenance plan.

I told him that many copier companies don’t actually hold your lease in-house but instead send it to an outside company. In these cases the leasing company sends you the lease invoice each month for the lease and the copier company will send you the bill for the maintenance plan because they are the ones providing the maintenance.

Then what the CFO said next had me puzzled. He said he likes to keep the copiers, printers and maintenance together in the same lease so he doesn’t have to write 2 checks every month. Huh?

This business does a fairly significant amount of printing and copying so they are paying A LOT of money unnecessarily.

Unlike this CFO many businesses who have the cost of maintenance rolled into their copier lease don’t understand that they’re paying leasing fees on the copier maintenance agreement.

I’ve even had prospective customers tell me that the sales rep of their current vendor told them that there are no fees whatsoever associated with putting maintenance into the lease.

That sounds like a bunch of poo poo to me. There could be many reasons a copier salesperson is encouraging you to do this but my bet is that it benefits the salesperson to do so.

One possibility is that the copier company actually holds the lease in-house and by rolling maintenance plan costs into the lease they make increased profits on that maintenance. Therefore the copier company may be giving the sales rep an increased commission for putting the maintenance costs into the lease.

If the leasing company (whether in-house or not)  is allowing you to have maintenance costs rolled into your copier lease they are charging you for the privilege one way or another.

They are leasing companies, not charities. They didn’t get to be the incredibly profitable entities they are by lending money to businesses for free.

It seemed to me that this CFO was costing his company a boatload of money for the convenience of writing one check per month instead of two. Heck, most copier companies will bill you quarterly or even annually for maintenance so you really don’t even have to write a maintenance check every month.

My advice is to have your maintenance agreement billed separately to avoid unnecessary costs to your business.

If your business is located in Maryland, Washington DC, or Northern Virginia and you would like a competitive quote from a copier salesperson who will tell you the truth (even when it hurts), please fill out the quick easy form below and I would be glad to help.

If you are anywhere else in the United States and would like my recommendation for copier companies in your local area fill out the form below and I’ll get back to you asap.

As always you can also ask me any copier buying question you like and I’ll do my best to give you a solid answer.

Thanks for stopping by. Have fun.

Ed Worthington.     edworthington@outlook.com.                           443-570-0414

 

 

 

 

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