Copier Leasing Vs Outright
In today's environment it seems obvious that the only truly viable option is to lease a copier or printing solution. That may be so for larger corporations and fortune 500 enterprises, but how about the smaller organisations and businesses that still demands high-quality printing and copying solutions? I would like to look at the difference of leasing vs. outright buying. In summary, leasing of a copier or printer is a contract agreed between parties over an agreed period of time (24, 36, 48 or 60 months).
Leasing a copier or printer is an operational cost and, depending on your local tax laws, can be included as a fully taxable expense (please refer to your local tax laws for this as they do differ immensely between different parts of the world). Purchasing outright however can be beneficial to those who can afford the initial capital outlay and are more than likely to use the copier with lower monthly prints over an extended period of time (perhaps seven years).
To get the most out of your capital investment (making sure to check your local tax laws for depreciation rates), investigate with the manufacturer the life expectancy of the equipment (total expected prints) and the maximum monthly duty cycle (monthly maximum prints) are on the equipment you are being recommended. By doing this you can then compare your estimated future print totals and determine how long your investment should last for (by dividing the total life cycle by your estimated monthly volume). This is a great bonus for smaller organizations who just can not afford the ongoing costs associated with leasing a copier and the interest it attracts.
Please keep in mind that suppliers do have a ceiling on how long they can service equipment for and how long they are required by law to keep the parts required for their manufactured equipment so investigate this when talking to your consultant.
When comparing leasing vs. outright I always recommend drawing a side by side cost analysis covering all expenses on both sides of the page. Make sure to cover any initials outlays, ongoing service or leasing costs, toner costs, delivery costs, call out fees and any payouts that may be required if leasing. By better educating yourself in the art of purchasing a copier or print solution your organisation will reap the benefits for years to come.
Jon Hillis is an expert advisor in the copier & printer industry. He currently operates and resides in Melbourne, Australia where he helps companies of all sizes achieve great, profitable results through the implementation and measurement of document solutions. Visit http://www.jonhillis.com.au