Are you getting ready to lease a multifunction copier for your office? Beyond the proposal from your vendor there are several items that need to be considered. Most local vendors operate as resellers for major manufacturers in the imaging industry. These independent agents may have their own set of rules on how leases and other services are structured. This is typical because vendors support their clients locally and work with leasing companies that are not tied directly with the manufacturer of the office equipment they sell – otherwise known as 3rd party leasing companies. Understand your local vendor’s rules (and costs) associated with a lease before you enter into any long term contract to protect your organization from hidden expenses.1. How are 11 x 17 prints calculated if I have a Cost per Copy (CPC) plan?
Many vendors charge differently for prints or copies made on tabloid or larger sized paper. In the imaging industry, most vendors use some sort of cost per copy calculation. For larger print output most charge 2 “clicks”, but some vendors only charge 1 “click.”
2. Who pays for service copies or prints ran during service calls?
Will you have to pay for impressions being made when a service person is working on the equipment? During service visits it is normal for a technician to run several hundred impressions.
3. Do you charge for delivery on supplies that are part of your CPC contract?
Are you the customer paying for the supplies going into your machine? Most leases are between 3-5 years and if you have to pay for shipping for routine supply items such as toner, drums or imaging units costs can add up quickly.
4. Is there any charge for making scans on the equipment?
More and more multifunction devices are being used for document archiving and email transmission. Having to pay for scans made is not a common practice, but nonetheless a good thing to check.
5. What happens at the end of the lease?
How does your vendor address lease expiration and removals? Normal shipping costs back to a leasing company can cost anywhere from $500 – $2,000 per machine. It’s standard procedure for the customer to be responsible for the return fee, crating, and packaging prior to the return. In addition, understand what happens if you don’t declare your intentions before the lease ends with your equipment. In other words, does your lease automatically renew for a year, or does it go month to month?
6. How does insurance work on the equipment you lease?
1/4% of the asset value is the industry average per month. Ask if you have to take the 3rd party leasing company’s insurance or if you can use your own.
7. Is property tax extra on a lease?
This varies from state to state, but ask your vendor about the local rates. This can inflate your base monthly lease price if it is not already included.
8. What is your guarantee if you are not satisfied after the sale?
What happens if you get a “lemon” after the lease is executed? Does your vendor honor giving you a totally different machine if something goes really wrong?
9. Are there anymore fees I should be aware of?
Other items to address up front are lease administration fees, UCC filing fees, delivery and setup, network connectivity, fuel surcharges, color calibration and system overhauls. Every vendor operates differently, so try to outline what is or isn’t covered.
10. What happens to my hard drive after lease termination?
With the recent reports of security breaches in the imaging industry, it is important to understand exactly what happens to your machine’s hard drive if you return your equipment at the end of a lease. There may be additional costs associated with removal or destruction of this accessory before it is sent back to the leasing company.
Call me and let's discuss how I answer these questions - 248-763-2497. I can also provide you with a nice little comparison chart that yiou can use to compare vendor responses to these questions and bring any "hidden costs" out in the light.
No comments:
Post a Comment