{"id":24637,"date":"2017-07-06T10:44:09","date_gmt":"2017-07-06T17:44:09","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=24637"},"modified":"2017-07-06T11:02:17","modified_gmt":"2017-07-06T18:02:17","slug":"six-reasons-why-copier-leases-can-cost-your-clients-more-than-anticipated","status":"publish","type":"post","link":"http:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/dealer-blogs\/2017\/07\/six-reasons-why-copier-leases-can-cost-your-clients-more-than-anticipated\/","title":{"rendered":"Six Reasons Why Copier Leases Can Cost Your Clients More Than Anticipated"},"content":{"rendered":"

When your customer signed his\/her last copier lease, did he\/she happen to take the time to read that lease?\u00a0How about the maintenance agreement?\u00a0If they’re like most lessees, they probably skimmed over the verbiage on the lease and then signed the maintenance agreement without reading the terms and conditions (T&Cs).<\/p>\n

\"\"For those of us that are in the copier sales business,\u00a0I thought I would write this to use with those prospects and clients that are not familiar with copier leases. In addition, this blog brings awareness that there are some vendors that have clauses in their leases that, well, let’s just say that they are not in the best interest of the client.\u00a0As such, sales reps can view this as an educational checklist to help prevent headaches and heartaches for their customers.<\/p>\n

Not reading those T&Cs could lead to some problems in the future, because there are clauses in those agreements that will increase costs.<\/p>\n

    \n
  1. Maintenance included with the lease:\u00a0<\/strong>Some leases have a clause that\u00a0allows the lessor\u00a0to raise the monthly payment for hardware and maintenance\/supplies by 10% or more per year.<\/li>\n
  2. Insurance with the lease:\u00a0<\/strong>Yes, lessees are required to have insurance on the leased equipment.\u00a0Most leasing companies will\u00a0bill them for insurance which is added to the monthly payment.\u00a0This is an additional profit center for some leasing companies.<\/li>\n
  3. Escalating Maintenance\/Supply Agreement:<\/strong>\u00a0Almost all maintenance\/supply agreements have a built-in annual escalator clause.\u00a0In most cases, \u001bthere is a clause that states something like, “we may raise your rate annually.\u201d\u00a0All maintenance\/supply agreements are raised annually because as the systems get older, they are more costly to maintain.\u00a0However, there have been instances where\u00a0the annual cost can increase as much as 25% each year.<\/li>\n
  4. Return of Leased Equipment:\u00a0<\/strong>At the end of the lease it is the lessee\u2019s responsibility to de-install, perform any repairs, pack and ship the copier back to the leasing company\u2019s facility at the cost of the lessee.<\/li>\n
  5. Early Termination of the Lease:\u00a0<\/strong>The lessor can charge an early return fee along with the remaining stream of payments in order for the lessee to return the copier before the end of the term.<\/li>\n
  6. End of Lease Notification:\u00a0<\/strong>All copier leases have an end-of-lease notification clause.\u00a0Some are palatable, like the 30-day notification before the end of the lease.\u00a0Others only provide a “window” of when the lessor can be notified that the client\u2019s intent is to return the equipment at the end of the lease. If they don’t execute the letter of intent to the leasing company on time, they can charge additional lease\/rent payments.<\/li>\n<\/ol>\n

    Given these six potential pitfalls with a copier lease, it’s up to your customer to read the lease, read the maintenance\/supply agreement.\u00a0If they have any questions, then ask.\u00a0It’s their money.<\/p>\n

    Below are some questions I would ask for each one of the above questions.<\/strong><\/p>\n

      \n
    1. Do I have to have maintenance\/supplies included in the lease?<\/li>\n<\/ol>\n

      Can we negotiate the cost of the annual increase?<\/p>\n

        \n
      1. Can I use submit a rider to the leasing company listing them as the loss payee in case of a catastrophic loss?<\/li>\n
      2. Can we negotiate the annual increase for the maintenance\/supply agreement?<\/li>\n<\/ol>\n

        What is the percentage of the annual increase for each year of the lease?<\/p>\n

          \n
        1. If we upgrade our current lease with your dealership, can you take care of the return costs and shipment?<\/li>\n
        2. What is the cost for early termination?<\/li>\n
        3. Is there a chance to get this changed to a 30-day notification clause?<\/li>\n<\/ol>\n

          Please feel free to email me apost@p4pHotel.com<\/a> if you have any questions or comments.<\/p>\n

          Be sure to check out Art’s website at <\/em>www.p4photel.com<\/em><\/a> and his blogs at <\/em>www.p4photel.com\/blog<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

          When your customer signed his\/her last copier lease, did he\/she happen to take the time to read that lease?\u00a0How about the maintenance agreement?\u00a0If they’re like most lessees, they probably skimmed over the verbiage on the lease and then signed the maintenance agreement without reading the terms and conditions (T&Cs). For those of us that are in the copier sales business,\u00a0I thought I would write this to use with those prospects and clients that are not familiar with copier leases. In addition, this blog brings awareness that there are some vendors that have clauses in their leases that, well, let’s just say that they are not in the best interest of the client.\u00a0As such, sales reps can view this as an educational checklist to help prevent headaches and heartaches for their customers. Not reading those T&Cs could lead to some problems in the future, because there are clauses in those agreements that will increase costs. Maintenance included with the lease:\u00a0Some leases have a clause that\u00a0allows the lessor\u00a0to raise the monthly payment for hardware and maintenance\/supplies by 10% or more per year. Insurance with the lease:\u00a0Yes, lessees are required to have insurance on the leased equipment.\u00a0Most leasing companies will\u00a0bill them for insurance which is added to the monthly payment.\u00a0This is an additional profit center for some leasing companies. Escalating Maintenance\/Supply Agreement:\u00a0Almost all maintenance\/supply agreements have a built-in annual escalator clause.\u00a0In most cases, \u001bthere is a clause that states something like, “we may raise your rate annually.\u201d\u00a0All maintenance\/supply agreements are raised annually because as the systems get older, they are more costly to maintain.\u00a0However, there have been instances where\u00a0the annual cost can increase as much as 25% each year. Return of Leased Equipment:\u00a0At the end of the lease it is the lessee\u2019s responsibility to de-install, perform any repairs, pack and ship the copier back to the leasing company\u2019s facility at the cost of the lessee. Early Termination of the Lease:\u00a0The lessor can charge an early return fee along with the remaining stream of payments in order for the lessee to return the copier before the end of the term. End of Lease Notification:\u00a0All copier leases have an end-of-lease notification clause.\u00a0Some are palatable, like the 30-day notification before the end of the lease.\u00a0Others only provide a “window” of when the lessor can be notified that the client\u2019s intent is to return the equipment at the end of the lease. If they don’t execute the letter of intent to the leasing company on time, they can charge additional lease\/rent payments. Given these six potential pitfalls with a copier lease, it’s up to your customer to read the lease, read the maintenance\/supply agreement.\u00a0If they have any questions, then ask.\u00a0It’s their money. Below are some questions I would ask for each one of the above questions. Do I have to have maintenance\/supplies included in the lease? Can we negotiate the cost of the annual increase? Can I use submit a rider to the leasing company listing them as the loss payee in case of a catastrophic loss? Can we negotiate the annual increase for the maintenance\/supply agreement? What is the percentage of the annual increase for each year of the lease? If we upgrade our current lease with your dealership, can you take care of the return costs and shipment? What is the cost for early termination? Is there a chance to get this changed to a 30-day notification clause? Please feel free to email me apost@p4pHotel.com if you have any questions or comments. Be sure to check out Art’s website at www.p4photel.com and his blogs at www.p4photel.com\/blog.<\/p>\n","protected":false},"author":10,"featured_media":16929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[79,1650,1638],"tags":[3194],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/24637"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=24637"}],"version-history":[{"count":5,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/24637\/revisions"}],"predecessor-version":[{"id":24642,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/24637\/revisions\/24642"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/16929"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=24637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=24637"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=24637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}