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Posts Tagged ‘leasing a copier’

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

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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.

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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

 

 

 

 

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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

 

 

 

 

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

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Copier Leasing Options for Baltimore Businesses- The 3 Types of Copier Leases

February 10, 2012 Leave a comment

Once you’ve decided to invest in a new copier for your business in Baltimore your next step is to decide whether you’d like to purchase or lease the copier. For tips and information on how to make that decision click over to our article titled “How to Decide if You Should Buy or Lease a Copier for Your Baltimore Businesses”.

If you have decided to lease a copier for your business there are only 3 lease options to choose from and these days only 2 options are truly relevant.

The 3 types of copier leases are:

Fair Market Value– The most common of all copier leases. The way that this lease works is that at the end of the lease term the leasing company will tell you what the fair market value of that machine is and then you can buy it from them for that amount of money.

$1 Buyout Lease– The next most common type of lease. The $1 buyout lease means that at at the end of the lease term you can “buyout” the copier from the leasing company. Now you may be wondering why you would choose any other type of lease over this one. The answer is that this lease will cost you more than the others in interest and fees during the life of the lease. The leasing company will get their money one way or the other.

10% Lease– The least common and very rarely used kind of copier lease.

Which type of lease you choose should be based on your situation and companies needs.

If you have further questions about copier leasing and you would like to speak to a copier leasing expert please contact me, Ed Worthington at 443-570-0414.

Copier Lease vs Buy: How to Decide if You Should Lease or Buy a Copier for Your Baltimore Business

December 10, 2011 Leave a comment

When you are ready to get a new copier for your business there are many good copier companies in the Baltimore metro area to choose from. Once you have selected the copier company one of the first decisions you will have to make is to lease or buy the copier.

Back in the 80’s and 90’s the ratio of buy vs lease was about 50/50.

Today about 80% of businesses, medical practices, and schools (public and private K-12 as well as university) in the Baltimore area lease their copiers.

So why the major increase in the number of leases? The main reason is that technology changes so fast with copier/multifunction devices that it may pay to lease rather than buy.

A copier isn’t a copier anymore. Back in the 80’s and even the 90’s copiers just copied. Today they copy, print, scan, fax, and are an integral part of the document management of a professional office.

With so many businesses attempting to go paperless, the copier/multifunction device becomes a powerful technology tool.

A copier today is a computer that performs multiple document management tasks.

With a lease a business can just budget a certain amount of money for the copier and then every 2-3 years upgrade to a new machine with the latest technology that will help their business become more efficient.

As a bonus to the leasing option, in many cases I save my client money on their new lease due to the fact that technology gets cheaper and more energy efficient.

That’s the scoop on leasing. Now let’s talk about purchasing your copier.

Purchasing your copier also has it’s benefits.

The main benefit is that you save money by not paying fees and interest charges associated with a lease.

Some of my small business clients have expressed that fact that they like to run their business with little or no debt.

Technically a lease is not debt, but you are bound to the terms of the lease so many business owners and professionals consider it the same as having debt.

Another advantage of purchasing a copier is that you can do whatever you want with the copier.

You can keep it for as long as it makes financial sense to do so. With the reliability of today’s technology you could have a machine for several years without having a lease payment.

Also when you purchase a copier you don’t have to return the machine to the leasing company as is the case with most leases.

On the down side of purchasing many small businesses find that $8,000 to $10,000 for a mid to high end machine is a lot of money for to pay up front.

So there you have it. These are the main points to consider when deciding whether to lease or purchase your copier.

As I stated earlier about 80% of my clients lease their copiers for the reasons above.

Whether you lease or buy should be a decision based on your  how you will use the copier/multifunction device as well as your business objectives.

If you have any further questions about leasing or purchasing a copier please feel free to call or email me anytime.

Ed Worthington 443-570-0414 or ed@edworthington.com.