Budgeting is everything when you're managing an office. You have to balance payroll, office supplies, equipment and rent. How can you maximize your budget and give your employees the additional tools they need to succeed? By leasing a copier or printer, you can invest the remaining capital on these tools and solutions to help grow your company.
One of the most integral tools in your office is the printer or copier. It's essential to successfully manage the costs associated with your print and copy needs. The good news is that you can lease a copier or printer for your office. Let's look at several ways that a copier or printer lease is better than buying one outright.
When you lease a copier or printer, you don't have to spend thousands of dollars upfront to get the equipment you need. Most leases don't require a downpayment from businesses, and if they do it's minor compared to paying the full price upfront. The money you save can then go into other areas of your company that improve customer service and employee morale.
With the money saved, you could upgrade your phone system, improve your internet, invest in an after-hours answering service, improve your website design or even get your employees ergonomic chairs.
Most small to medium-sized organizations would benefit from getting a business class copier or printer, but they can't fit the cost into their monthly budget. By leasing equipment, smaller companies can take advantage of the latest technology, maximizing efficiency and the lowest cost of operation possible.
Companies have flexibility on lease terms, but the average term is between 48-63 months. Most organizations find these lease terms more feasible and the regular refresh cycle that this allows is more efficient and cost effective.
There are certain times, however, when it's necessary for clients to buy instead of lease, such as in the case of capital expenditures. Some government agencies, political campaigns, and schools must spend their budget within a set amount of time for tax or expiration reasons. If you have similar concerns, contact one of our industry experts at firstname.lastname@example.org or (800) 767-823 to assist you with evaluating your options to choose the right fit for your organization.
The rapid rate of technological advancements makes office equipment leasing a better option than buying one outright.
First, most technology becomes out-of-date within a few years, meaning that you'd have to buy a new copier or printer every four to six years to keep up with changing tech. You could also continue running an old printer, but that leads to much higher maintenance costs and overall costs of operation, due to discontinued parts and increased toner scarcity over time.
When you lease a copier or printer, you'll have two advantages. First, leases come paired with a maintenance and service plan to supply support whenever it's needed. Throughout the term of the lease you'll have a team of certified technicians ready to respond to your needs. If you buy a copier or printer you may have a short-term warranty, but these warranties are also known to have loopholes in their coverage, so you could still end up responsible for the bill in the end.
The second benefit is that your lease provides a sustainable refresh cycle to ensure that you can upgrade your copier or printer with the latest technology and the most economical cost of operation. Instead of spending thousands of dollars for a machine that only has a five-year lifespan, you can pay less money up front and get an upgraded device as newer technology is introduced.
Every business looks for ways to lower their tax bill, and leasing will help. Buying office equipment outright could cause you to pay an AMT (Alternative Minimum Tax), whereas leasing your equipment won't. Also, when you lease your printer (or any other equipment), you can write the payments off as business expenses at the end of the year without having to worry about figuring out how to determine depreciation.
Now that you know some general benefits of leasing, it's important to understand the difference between these two leasing options.
An FMV lease is what most people think of when they hear the word lease. The lessee uses the equipment for a predetermined time with a set monthly payment. When the lease ends, the lessee has three options. They can either return the equipment, upgrade to new equipment or buy the equipment for the determined fair market value.
A $1 buyout lease, or capital lease, is somewhat similar to an FMV lease, but there are a few things that separate it. You'll make higher monthly payments with a $1 buyout lease because at the end of the loan you'll buy the printer for $1.
While a $1 buyout sounds like a great deal, there are a few problems with using this type of lease to buy a copier or printer.
One of the most powerful benefits that we touched on earlier is the ability to upgrade to new equipment. A $1 buyout lease doesn't easily afford you this option, meaning you could end up with an obsolete printer. At this point, if you want to stay competitive and use the best equipment in your office, you'll need to take out another (probably FMV) lease anyways. In essence, you're spending more money on equipment that you can't easily upgrade. The old copier or printer goes to the recycling center and you're left with the knowledge that you paid a higher monthly payment for a device that’s now obsolete.
Anytime you're dealing with a piece of technology, an FMV lease is your best option.
Small to medium-sized businesses also benefit from taking an FMV lease over a $1 buyout lease because of resources. After the $1 lease, you take complete ownership of the machine, and that requires resources that most small businesses don't have. If you discontinue your service agreement, you will need to self-maintain the machine, purchase your own ink and toner, incur the cost of repairs, not to mention loss of productivity during the downtime while the printer or copier is out of service.
An FMV lease means that those responsibilities fall on the service company leasing the equipment. A lot of companies will sell you on the idea of "buying a copier or printer for $1", but that number is very misleading. By the time you factor in both the higher lease payments and the increased cost of maintaining the copier or printer after the lease, you're spending thousands more.
Whether you plan on taking advantage of the benefits of office equipment leasing, or you already have the equipment and need help maintaining it, our Managed Print Services can help your organization succeed. With Managed Print Services, we'll take on the challenge of managing your print and copy needs. Starting with installation and training, we'll set up your printing stations and begin monitoring your devices remotely. Our support continues with automatic toner delivery and replenishment, device diagnostics and usage monitoring to help you create the most cost effective workflows for your organization. For maintenance or support, our team of experts will provide assistance within 4 hours or less. If you'd like more information about our services and how we can help your organization succeed, contact us today.