One of the trends we are seeing is a tendency for some clients to over hold on expiring MFP leases. What do I mean by over holding? Simply a tendency to ignore the end of the lease, move into an over holding situation as far as the leasing company is concerned and to continue to pay the same lease payment month to month or quarter to quarter while continuing to use the equipment.
Office Document Strategies Blog
Most companies who are setting up or expanding their IT network find the cost to do so challenging. I have noticed that unlike many other categories of office products IT products tend to be purchased outright.
Its sad to say but we have seen it happen. A potential client for a copier upgrade decides to go with a vendor prior to the end of their lease and the buyout or upgrade costs for the old unit are not paid by the vendor of the new copier. A few weeks later the leasing company contacts the purchaser looking for payment on their lease and the company is shocked to find out that they are still on the hook for their old copier's lease. The new vendor has not cleared the payment nor have they arranged for return of the device adding additional cost onto the deal.
I often get asked whether clients should buy out right or lease their computers or MFP equipment. The answer is always, it depends upon their circumstances, but there are some real advantages to leasing when considering copiers, computer equipment, software and related services.
One of the things that bothers me the most when I am dealing with clients is when I learn about deals they have entered into that are just not good for the client. This occurs in all of the areas of our business, IT support, multifunction printers or postage machines.
Most mfp (multifunction printers) are acquired using a lease as the basis for the deal. I find that many clients are not familiar with the various types of leases that are available. Here are some typical questions that I hear.
In our area, Burlington, ON, IT network buyers, unlike buyers of MFP printers, are often not familiar with leasing their equipment and software. I think they should give leasing much more consideration. There can be significant benefits from leasing rather than buying.