Archive

Posts Tagged ‘copier lease’

A Little Know Secret to Saving Big Money on Your Next Copier Purchase or Lease

business man holding money

With today’s business climate being so uncertain many business owners and executives have become highly price sensitive when it comes to making purchases for their company.

I’ve been in sales and marketing for over 20 years in the Baltimore, Maryland and Washington DC Meto area during that time I’ve observed the level of price awareness rise each year.

I think I can safely assume that the same is true all over the United States and even overseas.

I can remember a time in the early 2000’s when a purchase of a few thousand dollars could be made relatively quickly, in 1 meeting, by a single decision maker who sometimes didn’t even get more than one quote from prospective vendors.

Now, that same purchase of a few thousand dollars requires multiple decision makers, several meetings and multiple price quotes from different competing vendors.

Obviously, things have changed.

//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js

(adsbygoogle = window.adsbygoogle || []).push({});

Business owners and executives are looking at business expenditures, especially larger ones, much more closely due to the economic pressure we all feel.

One of the larger single expenditures for most companies is the purchase or leasing of copying and printing equipment.

Although many companies have initiatives to reduce paper, businesses in America still spend considerable amounts of money for the ability to copy and print documents.

If there was a way to reduce that cost you’d probably want to know about it right? Well there is!

If your organization never or rarely prints or copies 11″ x 17″ (ledger)  paper I have good news for you.

In the copier/multi-function printer world there is a way of classifying these machines.

The distinction is made by how large of  a sheet of paper the machine can print or copy on.

There are 2 classes and they go by the names A3 and A4. I won’t get into why they are named this way in this post but just know that there are 2 major classes.

To keep it simple an A3 machine can print and copy on to 11″ x 17″ (ledger) paper. In some cases they can even print up to 12″ x 48″ banners.

An A4 copier/multi-function printer is limited to printing letter (8 1/2″ x 11″) sized paper and legal (8 1/2 ” x 14″ ) sized documents.

As you may have guessed an A4 machine costs less because it doesn’t contain the components that are needed to print larger pieces of paper.

Years ago an A4 machines were typically only printers, usually desktop style, and A3 machines were copiers.

Over the last 5 or so years there has been a trend among copier and printer manufacturers where they have begun adding copying, scanning and faxing capabilities to their A4 model printers.

The result is a multi-function printer that does everything print,, copy, scan & fax) an A3 device does but for significantly less cost.

So if you are in the market for a new multi-function printer and don’t need to prints 11″ x 17″ documents ask your copier vendor and a few others to quote you on an A4 device as well so you can compare the two.

If your organization does occasionally need to print ledger sized documents keep in mind that you can always outsource that printing to a local printer who will happily take care of it for you.

So now I’m going to board up the doors and windows of my house because I’m sure I just ticked off a lot of copier sales guys by telling you this information.

Basically they’re going to make less money because of me.

Hopefully upon further reflection they’ll realize that although they are going to make less money they have most likely created a long term customer who is grateful  (and therefore more loyal) that the rep told them the truth even though it cost him or her commission dollars.

One last point.

Some people in my industry may make the point that an A4 machine cannot handle large copy and print volumes like an A3 can.

I don’t believe there is much validity to this point unless you are truly copying and printing large volumes of paper per month.

Even in that case, these machines are very reliable.

My best advice is to check the manufactures specifications for the device your considering use that as your guide.

I hope this helps.

As always, if you have any questions feel free to email me or simply give me a call.

If you’re in the market for a new copier, printer, document management software or IT services and you’re located in Baltimore, Maryland, Washington DC or Northern Virginia please allow me to provide you with a quote.

If you’re not in one of those areas and need quote please contact me anyway. I have a network of qualified, screened copier dealership in all 50 states, Australia, Canada and South Africa.

Thanks and have a fun day!!

443-570-0414 (cell)  edworthington@outlook.com

 

Have a fun day!!


Ed

 

 

 

 

Advertisements

Should You Include Copier Maintenance Plan Costs into Your Copier Lease? Updated

copier : young worker using a copy machine

Back in March of 2014 I wrote a post titled, Should You Include Copier Maintenance Plan Costs in Your Copier Lease?.

At the time I was very against including copier maintenance plan costs (also referred to as a copier service plan) into the lease of the copier.

I noted that in many cases the reason the copier buyer does this is for the convenience of having to write only one check while some copier companies may be motivated by the fact that they can get interest and fees on the maintenance plan costs whereas if the maintenance plan is billed separately they don’t.

Please note that I said “some” copier companies may be motivated by interest and fees on the service plan. I don’t want to paint the whole industry with a broad brush. That really wouldn’t be fair.

While I still feel that it’s generally a bad idea to add the service cost to the lease I have discovered a new way to go about this.

A way that you can combine the lease and the service agreement together without paying ANY interest or fees of any kind on the service. The best of both worlds.

It’s called a pass-through. The reason it’s called a pass-through is that the leasing company will accept their monthly payment from the business who leased the copier and then  pass the copier service/copier maintenance agreement portion of the payment back to the local copier company who sold the machine and performs the service/maintenance on the machine.

This is done without you the customer paying any fees whatsoever to the leasing company for passing the payment to the local copier company.

This can be a little confusing so I’ll sum up the whole process for you.

When you lease your new copier you purchase a service agreement on the copier.

A copier service agreement covers toner, repairs (including parts and labor) and preventative maintenance. All you have to do is buy paper. Everything else is covered.

When is comes to billing some copier companies will add the service/maintenance costs to the lease. The problem with this is that you are paying interest and fees on the service plan.

It doesn’t have to happen this way because the copier company who sold you the copier and will service the copier can bill you separately for the copier service agreement.

In other words you pay the leasing company their payment for the copier and write a separate check to the local copier company for the service plan on the copier because they will be performing the service on your copier.

Many copier buyers love the convenience of making only one payment but don’t want to pay interest and fees on the service plan if they don’t have to.

This is where the pass-through comes in.

The leasing company sends the customer one monthly bill which includes the copier and the service agreement and then passes the service plan portion of the payment back to the local copier company.

The copier buyer is happy because they only had to cut one check.

It’s a great service that provides the best of both worlds for the copier buyer.

I now offer this single payment service to my customers here at my copier company in Baltimore so if you are in Maryland, DC, Northern Virginia or Delaware and 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 honest copier companies in your local area fill out the form below and I’ll get back to you with the names of some trusted companies.

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

Thanks for stopping by. Have fun.

Ed Worthington

 

 

 

 

 

Should You Include Maintenance Plan Costs In Your Copier Lease?

Business saving money Stock Image

 

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

 

 

 

 

Copier Buying Tip- Keep the Future in Mind

November 13, 2013 Leave a comment

The purpose of this blog is to pretty straightforward. To save you time, money and pain when buying a copier for your business. professional practice or church. Whenever I see what seems like a buying mistake made by a business I try to bring it to you in hopes that you won’t repeat others mistakes.

Recently I was working with a customer in Baltimore who bought a copier from my company about 4 years. The customer bought the copier from someone else in the company so I was not the person who originally sold the customer this copier.

When I sat down with the customer and began to ask him some questions to get familiar with his business he expressed his dissatisfaction that the copier he has currently wasn’t keeping up with the needs of his business. He had recently began to experience some service issues with the copier and felt he had actually been “undersold” when he purchased the copier.

In other words he felt that the previous representative from my company that he worked with didn’t sell him a machine that was made for the high volumes he was printing and copying.

Upon further review of his account I realized that the original service agreement he signed 4 years ago was for 20,000 copies/prints per month and they were now doing over 80,000 per month.

I asked him if the company has grown over the last 4-5 years and he expressed that the growth has been significant. I explained to him that based on my research his volumes had increased significantly over that last 4+ years and that when he originally purchased the copier he himself felt that 20,000 copies/prints per month was sufficient.

It really wasn’t the previous salesperson’s fault. She thought she was doing the right thing at the time. The only mistake she may have made was to neglect to ask the customer about their growth expectations. At that point if the customer was anticipating rapid growth maybe higher volume model could have been recommended.

I quickly remedied the issue by recommending that the customer purchase either 2- 65 page per minute copiers or one 135 page per minute copier. Having 2- 65 page per minute copiers has some advantages over 1- 135 page per minute copier like the ability to have 2 people sending faxes at once.

In the end this customer opted for one copier but the moral of the story is when buying a new copier keep in mind that if you anticipate company growth you may want to go one or 2 models up from what you current needs warrant.

If you don’t, you may end up having service issues when the copier is being used more than the manufacturer recommends for that model.

Also keep in mind that manufacturers tend to exaggerate the number of monthly copies/prints their machines can reasonably handle without having service issues. Sometimes I get a good laugh when I read manufacturers brochures. I have no idea why they put such unrealistic numbers on these spec sheets but I find all manufacturers do it.

The other option is to keep in mind that you may have to expand your copier budget to purchase a second machine while you still have an active lease on the first one.

If you choose the two copier option keep in mind that you don’t want to wait until your first copier is having a lot of service issues to add the second one. By that time the first one may be burnt out and have to be replaced well before the lease ends. This would defeat the purpose of the strategy.

So the copier buying tip today is to keep future needs in mind when purchasing a new copier for your business.

Thanks for stopping by and reading. If you have any questions  or comments please feel free to fill out the form below.

Have fun!

Read more…

How Much Does It Cost To Lease A Copier?

“How much does it cost to lease a copier?” It’s one of those questions I get all the time and it seems like a simple question but it’s not.

The reason it’s not that simple is because just like when you buy a new car there are many different makes and models and additional options and accessories to choose from.

Things that effect the copier price are:

  • the speed of the copier
  • whether it’s a color copier or a black only copier
  • additional copier accessories like a stapling, sorting finisher, a booklet making finisher, faxing capabilities, additional paper drawers

Once you decide the copier speed, whether it’s a color or black copier and the accessories you’ll need to decide the length of the copier lease in terms of months/years.

99% of my customers have either a 36 month (3 year) or 60 month (5 year) lease however I do have a few with 48 month leases.

Obviously the term you choose is up to you. A 60 month lease will give you a lower monthly copier lease payment but you will pay more interest and fees on the copier than if you chose a shorter lease term.

Once you have chosen the copier speed, color, accessories and lease term your all set to make an educated, well informed decision about which copier you want.

So by now your probably saying, “that’s great Ed but when are you going to tell me how much it costs to lease a copier?’.

Well, here you go.

Most copier leases range anywhere from $50.00 per month all the way up to $500.00 or  per month for 1 standard office copier. This excludes light production and production machines that are over 85 pages per minute.

A good rule of thumb for me is that the lease should be somewhere in the neighborhood of $22.00-$30.00 per month, per one thousand dollars of the total cost of the copier.

For example if your new copier is $10,000.00 it should cost you somewhere in the neighborhood of $200.00-$300.00 per month.

The reason I have given a range here is that the monthly copier lease investment depends on the length of the lease.

So the payment on a 36 month lease will be higher than the payment on a 60 month lease.

A 60 month lease is less because you are stretching the cost of the copier out over more months than a 36 month lease.

Keep in mind that the lease payment is based on the total dollar value of the copier you’ve selected.

Also keep in mind that the numbers I just gave you are for the copier only.

These number do not include the copier maintenance contract / copier service contract.

I hope this is helpful.

As always thanks for stopping by today and feel free to send me your questions or comments. You can use the form below or send me an email to ed@edworthington.com.

If you’d like to receive of free copy of my Copier Buying Guide titled, The Ultimate Copier Buying Guide, How to Get the Best Deal on a New Copier.

This Copier Buying Guide will give you The  Inside Information You Need to Make Sure You’re Not Getting Ripped Off and You’re Getting the Right Copier for Your Business. Just ask for the Ultimate Copier Buying Guide in the form below or in your email.

Equipment Leasing 101

Whenever I come across resources that I think can help you make the best decisions for your business when it comes to leasing a copier, buying a copier or renting a copier I try to pass them along.

So in the spirit of education here is a document called Equipment Leasing 101 produced by a company called Direct Capital.

Keep in mind that Direct Capital is in the business of leasing equipment so you’ll want to be discerning with this information; however, there is certainly good information in the document.

I hope this helps.

As always, feel free to contact me via the form below or by email with any questions.

Thanks for stopping by.

Ed Worthington – ed@edworthington.com

equipment-leasing-101

What Happens at the End of a Copier Lease? If You Don’t Know, You’ll Pay Too Much

In my day to day work one of the most frequently asked questions I get about copiers is, “what happens at the end of the lease?”.

I have covered this in a previous post on the general topic of leases but I thought it might be good to dedicate a specific post to the topic.

What happens at the end of a copier lease depends on what type of lease it is, fair market value or dollar out/ buck out lease.

At the end of a fair market value lease the leasing company will decide what they believe the fair market value of your copier is based on the original sale price.

If you would like to keep the copier you just pay the leasing company that amount of money and it’s yours.

If you don’t want to pay what the leasing company is asking than you let the leasing company know that and they will send you return instructions via fax or email.

The return instructions will let you know how to ship the copy machine and where to ship copy machine to get it back to them.

The “where” is self explanatory but the how requires you pay special attention to what the leasing company is asking you to do.

For example, how they want the copier packed and how much and what type of shipping  insurance they require you to put on the copier.

Also they will let you know by what date they expect you to have the machine at their location.

Doing exactly as the leasing company has asked is very important.

I have a customer in Westminster, Maryland who recently bought a copier from me.

When he decided to purchase his next copier from me his current vendor told him they would come get the copier and ship it back to the leasing company at no charge.

RED FLAG!! Why would they do that at their cost for a customer who has just decided to go with another copier company.

I instructed my customer to be sure he asks his former vendor for proof of insurance on the shipping as well as proof that they had shipped it.

Unfortunately my new customer didn’t follow my advice and somehow the copier never made it back to the leasing company. Well guess who’s liable for the $2,000 value of that copier. My customer is.

To further complicate the matter his former vendor had just been purchased by another copier company in Baltimore and when he called them they referred him to the new copier company saying that the new company has all of their customer records.

Well when he contacted the new copier company in Baltimore they had no record whatsoever of this customer.

The moral of the story is at the end of a fair market value lease if you decide not to keep the copy machine be sure to control the process of shipping that machine back and do exactly as the leasing company has asked or you can end up like my new customer who now owes the leasing company $2,000 and he no recourse.

Now let’s move on to dollar buyout or sometimes referred to buck-out leases.

This type of lease is simple. At the end of the lease you pay the leasing company one dollar and the copier is yours to keep. Thus the name dollar out copier lease or buck out copier lease.

I hope this helps. If you have any questions feel free to contact me using the form below or by email. ed@edworthington.com.

Thanks for stopping by. Have a fun day.