Monday, June 27, 2011

"What I Like About" Leasing MFP's & Copiers

In the previous blog, I had a response from a reader that he could not find anything on the Print4Pay Hotel forums in reference to a Bakers Dozen lease.

Back in the Eighties I got hooked up with one of the best leasing reps in the business, he taught me the in's and out's of leasing and I haven't forgotten them. Kudos to Dennis G, at the time he was working for Hertz Commercial Leasing (HCL), and pretty much every couple of months he would pay a visit to our office to teach us on how to sell leasing. Dennis is now with LCA (Lease Corporation of America) and I highly recommend him and his company.

Today’s reps are handed rate sheets and shown how to figure out a payment and how to write the lease and that's about it! You know..., that’s BS, there's so much you can learn from qualified veterans like Dennis and others. Such as the Bakers Dozen lease, which was very popular in the late Eighties and early Nineties. I mention the Bakers Dozen lease in the office every once in awhile and all I get is "whoa, what's that", you mean there's other types of leases other than FMV (Fair Market Value) and a 60 month term? Sad but true, there's not many dealerships of leasing companies that teach leasing to their new reps and even keep up with the old reps.

Here's the Bakers Dozen for you:

Take the total price of the deal and divide it by 12, thus you have the monthly payment. You'll write the lease for 13 months with the 13th payment being the interest payment. Take note, some leasing companies may want a part of your invoice, meaning if the deal is $10,000 they might want an additional 3% and they will pay you $9,700. But the key is you've got a unique closing weapon that other reps are not using or not thinking about. Let's face it, in today’s economy customers don't want to part with a large lump of cash and are very leery of long term leases with high interest. When a customer balks and tells you "I'm not leasing", in most cases they are objecting to the term of the lease and the amount of interest they will have to pay. Most reps will then move to a cash price, and find a roadblock because the customer does not want to part with a hefty lump of cash. So, if you've went down this road you next alternative is to ask if they are open to "creative financing", in most cases you'll get a yes, and that's when you pitch the Bakers Dozen. Its then up to you to seal the deal. You may even find yourself writing a 24 month term in some cases.

So, with that there are many other programs available, but you've got to ask your leasing rep or your sales managers about other plans that may be offered. In most cases Leasing Companies will be more than happy to customize "Creative Financing" options for you, the sales team and the customer. But, you gotta ask.

I can think of 5 or 6 other "Creative Financing" leases that I'll use to close deals, however I'm not going to post them here and if you want them you'll have to go the Print4Pay Hotel forums and become a member of the largest global social site of MFP and Copier Professionals!!! Click here to register (It's FREE) Print4Pay Hotel forums.

-=Good Selling=-

1 comment:

Vincent Velasquez said...

Great idea I'm going to ask my leasing rep about this option.