Sunday, December 16, 2012

14 Reasons to Lease Office Equipment (Printers & Copiers)

It's always good to review the basics, and to remember the basics when explaining equipment leasing to a client that is new to leasing office equipment. It's also not a bad idea to keep this in your portfolio!

1. Why Lease?
Leasing provides your customer with the use of the equipment for an agreed-upon monthly payment for a fixed term.

2. Tax Benefits:
Your customer can deduct their monthly lease payment as an operating expense. Leasing also helps them avoid the Alternative Minimum Tax (AMT) by reducing their AMT tax liability.

3. Flexibility:
Your customer can structure payments to fit their budget.

4. 100% Cost Coverage:
You can include “soft” costs such as shipping, software and installation right in the lease.

5. Technology Changes:
In three years the technology can and will change for the better. By leasing your customer will be forced to look at the new technology and see how it helps your customers business

6. Conservation of Capital:
If your money is not tied up in equipment costs, they are free to spend it on other items such as inventory, advertising or personnel.

7. Easier Cash Flow Forecasting:
Fixed monthly payments help your customer budget money into the future.

8. Fixed Payments:
They can lock-in payments now... and avoid the risk of inflation in the future.

9. Preserves Credit:
Leasing doesn't tie up your customers line of credit. So you have more capital at your disposal
when you need it!

10. Longer Terms:
Many banks only lend money short-term, usually 12 to 36 months. But leasing lets your customer extend your term up to 72 months!

11. Purchase or Renewal Options:
At the end of your lease, they may choose to purchase your equipment, upgrade to
new equipment or continue to lease at substantial savings. Of course you do not want them to renew but you can write a service contract and keep them until they are ready.

12. Insurance: Have your customer show proof of insurance at the lease signing or with the first bill and save them $5-$50 each month. However, if your customer is in a flood prone area then they need to take the insurance because the insurance will cover flood damage as I've noted on the print4pay hotel forums. Most BOP policies do not cover flood!

13. Service…Include it in Lease?
There are many opinions on this however there are a few things to consider. At 36 months, which is basically interest free it will not cost any extra to put the monthly service cost in the lease. At 48 or 60 it can cost the customer. Separate yourself from the competition and break it out on a separate Cost per Copy Agreement. If you still include service in lease be very confident on the anticipated volume.

14. Return on Investment or (ROI):
Do a cost analysis including current machine capabilities, current CPC, supplies on printers, current lease, productivity & options they can have. Do they ever go to Kinko’s or Staples for copies? Show the customer a little savings and they will give you the key to the executive
washroom. If the cost is more stress productivity and keeping people in the office/desks and the new features and benefits.

-=Good Selling=-


RedskinMike said...

How about tailoring these benefits to the Canadioan marketplace for those of us in the Great White North?

Gerry needs office equipment said...

I love all 14 points that you made here. Thank you for sharing. Really helps clarify why I am going the route that I am going.

Matt said...

Very good points, must followed tips while hiring a printer, copier leasing company. Thanks for the share.

Cayman Leasing said...

Very good article for select best option about leasing.

Helen Malingo said...

I never would of thought that leasing office equipment could give me a tax break. I also would never have thought that leasing office equipment would help me preserve my credit, as well as my customer's lines of credit. You have a lot of great advice and tips to offer. I really appreciate all of them and I especially like how you mention that leasing equipment means I can get locked into payments now and avoid the risk of inflation later.

Anonymous said...

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medical office leasing said...

Having the option to lease office equipment is a way for a business, whether just starting up, family owned or a large company, to have access to necessary equipment now. Not only are the essentials such as copiers, fax machines and computers available for leasing, also office furniture helps to make your business professional and modern.

Bob Lowe said...

Thanks for the information. I really like the idea that renting a printer gives you flexibility for when technology changes. In this day and age technology is always evolving, and so is your business. I think it is important to always stay on top of the new trends.

Anonymous said...

The bottom line is leasing a printer, or any high-end technology that makes sense from a cash flow point of view is only going to benefit businesses in the long term. Office equipment leasing has been around for a long time, and since technology is changing and becoming more and more advanced, businesses of all sizes need the smarts to be able to integrate with their systems and more importantly, to integrate with the cloud. However, these type of smarts are expensive and cash flow hungry, that's why a printer lease is so effective.

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