Cost of leasing a copier
A lot of companies pay Click rates (0.11c) per copy and don't pay for the machine or toner, every year it increases in cost and can get up to $1 on color A3 copies. It's a viable decision to renew contracts with new machines.
Typically, there is a cost per copy (CpC) for every page that you print. (Some companies will charge double clicks for. 11 x 17 or scanning). Every year, your cost per copy will continually rise, which is also a opportunity for the sales rep to possibly reduce your CpC (typically newer technology has a lower CpC). Depending on the volumes your office does, this could be where the most "value" to create cost savings comes from.
In terms of your CpC, this typically includes all consumables such as, toner, any and all repair and delivery. The only thing it won't include is paper (or other consumables such as staples if your device has a professional finisher).
Sometimes companies consider just buying the toner, or paying for repairs themselves. However, this is likely not the best option since the devices (like a car) can be quite expensive to repair, and toner can be very expensive purchased on its own.
If you were to go buy a HP desktop printer for example, it may cost you $ 300.00. HP will typically take a loss on the original sale, because they know they will recoup the costs when you purchase the toner.
I am a sales rep for one of the big players. 90% of equipment is leased for 36, 48 or 60 months and the business pays a monthly rental and a click charge for what they print. The copiers may work but they are expensive to run and often break down or are under utilized. At the end of the lease the business will be approached by us and competitors and the sales cycle begins. Basically the decision to upgrade the fleet of copiers comes down to a few things.
A) Can we add more value to the business with additional benefits such as software (ocr, papercut, follow me, cloud storage etc. ) on top of a new fleet of copiers?
B) Can we offer a cheaper price and lower click rate (instead of 1 cent per page maybe it's 0.8 cents)
C) Can we offer a better service so that downtime is kept to a minimum and support is provided in a reasonable manner? (a lot of business owners are pissed when they have received shit sevice and is a big reason to change)
So basically whether it is a, b or c the business stands to benefit from upgrading. Even if the copiers work just fine they can always get a better deal especially in such a highly competitive industry.
Equipment leasing has become very popular because it is a more feasible solution to meet your requirements than purchasing by spending from your capital. When you are setting up an office you may need equipments including a color copier machine. That's when the important decision needs to be made on whether to purchase one or lease it. It is wise to opt for getting one by lease that suits your requirements. Technology advances everyday so it does not make much sense in investing part of your capital for color copiers, because the copier machine you wish to buy may become obsolete in a short span of time.
The benefits of color copier leasing over purchasing are that with the former it's easy to replace or upgrade the equipment in order to keep up with the competition. Depending on your growing business needs you can easily update with a technologically advanced model of copier which can tackle the work with quality and with lesser processing time. And moreover a copier lease allows the customer to replace the old copier with a new one without paying any extra overhead costs which cannot be availed through a copier purchase.
The color copier machine requires maintenance. If you are running a small business, you may not have the sufficient resources to provide for the maintenance as well as to keep a dedicated maintenance staff to solve the problems which may occur with the copier equipment. The benefits of copier leasing here are that the equipment is provided with regular maintenance from the leasing company itself without causing you any additional burden on your budget.
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