Copier buyers assume it’s an easy task to call a few vendors; request a bid; and go with the best deal. Since I’ve been delivering copier quotes for almost 40 years I would like to point out a few things for you. Copier reps are use to doing a lot of quotes and can confuse prospects to their benefit.
For example, if you tell the rep you’re going to lease they will often quote a cash price and a lease price. However, the lease price isn’t always tied to the cash price. The cash price is simply to wow you into thinking you’re getting a great deal. Besides the lease price being based on a different price there is often an extra profit built into the financing in the form of points.
We don’t add points but many copier dealers do because it’s extra compensation not tied to the purchase price. If you question the interest rate they simply point out that it’s a lease and not a conditional sale as if that ends the argument.. New copiers have better interest rates than used if points are not added in.
Another confusing area is purchase options on the lease. Some leases have a Fair Market Value purchase option at the end. They are usually 15% to 25% of the original selling price. The leasing company with the lower interest rate will usually have the higher Fair Market Value purchase option at the end. That’s one of the reasons we like Great America Leasing. They have reasonable rates and their Fair Market Value purchase option at the end is only 15%.
Many leasing companies today require the customer to pay for shipping the old copiers back to their warehouse. If at all possible ask the new vendor to take care of this since they are making a profit on the new lease and have some money to work with.
A final word of caution is Cost Per Copy Lease proposals. They sound great when the copier vendor quotes you an all inclusive 3 cents per copy. The “gotcha” part is where they set your monthly minimum. 3 cents per copy becomes $300 per month if the minimum is set at 10,000 pages per month. What happens if you don’t make 10,000 pages some months? Not a good way to go!