Should You Lease a Photocopier or Buy One?
Nowadays, replacing malfunctioning or unrepairable copy machines is easy. Apart from buying a new one, you can now opt to lease a photocopier. According to reports, more companies find leasing more advantageous. But there are still those who prefer buying their own copy machines. For your company, which option should you choose?
There are various factors which you need to consider when deciding whether you should lease a photocopier or buy a new one.
First, think about your budget. If you can afford the capital outlay required in buying a copier, then go ahead and purchase one. However, know that, contrary to popular belief, office devices like photocopiers and printers are not good investments, primarily because they depreciate and become obsolete quickly.
On the other hand, if you currently cannot afford the upfront payment, then leasing is something you should consider. This option is a bit easier on the pocket in that it does not involve a huge, one-time payment. When you are leasing, you pay a fee per month or per quarter, depending on your contract. Hence, you are able to divide the cost over a given period of time.
It is important to note, however, that leasing should only be considered if your projected revenue shows that your business can generate enough money to pay the monthly fee. This is why, photocopier leasing is not recommended for recently established enterprises. Since they have not taken root yet, these businesses are vulnerable and may fold unexpectedly. This can result in problems since most copier lease contracts involve a minimum lock-in period of a year or two.
Say your company closes when the lock-in period hasn’t lapsed yet or it doesn’t earn enough, you simply cannot abandon the contract. Depending on what’s stipulated on the agreement, you may be required to pay an opt-out fee first. So, if your company is new, it is best to just purchase a photocopier and consider leasing one when your business expands.
You must also consider your volume per month. If you make less than 700 copies monthly, purchasing a photocopier is the more logical choice for you. Typically, leasing is recommended for businesses with medium to high volume per month which is over a thousand copies.
Meanwhile, a photocopier lease is the smart choice if you want immediate access to the latest photocopier technology at a reasonable cost. There’s no denying that IT rapidly changes. Sometimes, having up-to-date equipment can give you the edge you need to outperform your competitors. You can do this without worrying about large, upfront payments when you lease.
Additionally, when your needs change, getting a hold of a photocopier that meets your requirements is much easier with leasing. Usually, towards the end of your contract, you can choose to upgrade to an equipment with specifications that better suit your requirements. Moreover, companies that offer photocopier lease have a wide selection of copy machines. Therefore, finding the exact copier that meets your need should not be difficult.
Lastly, if you decide to purchase a photocopier, make sure you can afford to get a service agreement, too. Keep in mind, your photocopier, like all electronic equipment, may malfunction any time. You need to have a technician who can immediately fix the device. Otherwise, the prolonged downtime can disrupt your operations and lead to financial losses.
If getting a service agreement is not feasible, go for a photocopier lease since most of them come with service contracts. The service agreement usually includes free maintenance checks and free replacement of some parts. Furthermore, when your device needs a major repair, a replacement is going to be provided. This helps you avoid costly work disruption. Whereas when you purchase your own copy machine, you have no choice but to wait for it to get repaired if you have no money to purchase a new one.
Leasing a copy machine and buying one both have advantages and disadvantages. When deciding which option is best for you, consider the factors mentioned above as well as your company objectives and resources.
Should you lease a photocopier or buy one? Our sales specialists can help you decide which option is best for your company. Call us at 0818 987 900!
Photo by Blue Mountains Library