{"id":60579,"date":"2024-06-06T15:10:37","date_gmt":"2024-06-06T22:10:37","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=60579"},"modified":"2024-06-06T15:10:41","modified_gmt":"2024-06-06T22:10:41","slug":"redlining-contract-language-when-clients-wish-to-amend-leasing-agreements","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/editors-blog\/2024\/06\/redlining-contract-language-when-clients-wish-to-amend-leasing-agreements\/","title":{"rendered":"Redlining Contract Language: When Clients Wish to Amend Leasing Agreements"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Contract terms and conditions are a part of business life, a necessary evil, if you will. Many leasing agreements contain boilerplate language and stipulations. That doesn\u2019t mean, however, that the client or prospect will see it that way.<\/p>\n\n\n\n

For a vast majority of business deals, the contractual agreement is a matter of course. Unless a client has always paid cash for all of its business technology needs, they\u2019ve been down the leasing\/financing road many a time. Still, astute negotiators will seek to ensure the terms and conditions are as favorable as possible.<\/p>\n\n\n\n

An indelicate term would be haggling. But we\u2019ll keep our language professional here in this month\u2019s opening State of the Industry report on leasing. Our dealer panel shares its views on how they navigate deals when either the client\u2019s legal department or chief negotiator steps into the fray.<\/p>\n\n\n\n

\"\"
Tom Ouellette, Budget Document Technology<\/figcaption><\/figure><\/div>\n\n\n\n

The larger the deal, the greater the likelihood that a client or prospect will request alterations to a standard agreement, notes Tom Ouellette, president of Budget Document Technology in Lewiston, Maine. Medical facilities and the K-12 education space are more likely to engage legal departments.<\/p>\n\n\n\n

Obviously, not all requested changes are major, and Ouellette tries to be accommodating as possible. When it does happen, he generally turns to its leasing partner, GreatAmerica, for clarification and insight.<\/p>\n\n\n\n

\u201cI let the client know it\u2019s a legal document,\u201d he said. \u201cThere are some changes that can be done by a lawyer. I generally pass it on to GreatAmerica. We\u2019ll set up a conference call where I can do the introduction, then let GreatAmerica work it out and see what the client will or won\u2019t accept.\u201d<\/p>\n\n\n\n

\"\"
Josh Salkin, EDGE<\/figcaption><\/figure><\/div>\n\n\n\n

According to Josh Salkin, a partner with EDGE Business Systems, it\u2019s not so much a matter of expectation-setting as it is striving to ensure an equitable agreement. Striking a balance is the key here.<\/p>\n\n\n\n

\u201cWe try to work with our leasing partners to address special T&C changes clients want to strike through or modify,\u201d he said. \u201cAt the end of the day, it\u2019s about finding a happy medium between reasonable requests and unnecessary demands.\u201d<\/p>\n\n\n\n

Accommodating Clients<\/strong><\/p>\n\n\n\n

\"\"
Doug Pitassi, POA<\/figcaption><\/figure><\/div>\n\n\n\n

Doug Pitassi has been in the industry long enough to remember when a handshake deal was all that was necessary. The president of Pacific Office Automation (POA) in Beaverton, Oregon, believes developing trust and earning a client\u2019s respect goes a long way when it comes time to lay out the terms and conditions. It\u2019s a low percentage that seek changes, he notes, and POA seeks to work out as many issues as possible when client legal teams go through the review process.<\/p>\n\n\n\n

\u201cWhether it\u2019s questions about indemnification, insurance claim charges, escalation costs\u2014anything that might be part of a contract\u2014we are ready to accommodate our client,\u201d he said. \u201cThe copier business has made it really simple. We bundle everything and put it into a monthly payment. We also make it simple for the client; we can always break it out and explain it to them. Building that trust is the key. If you treat them right, most of the time they\u2019ll agree to the terms.\u201d<\/p>\n\n\n\n

\"\"
Dean Swenson, TSG<\/figcaption><\/figure><\/div>\n\n\n\n

Legal firm clients are generally the most apt to seek changes on terms and conditions, but they also understand there are limits. Dean Swenson, president of The Swenson Group in Livermore, California, says that while many of the terms are not negotiable, they\u2019ll make as many concessions are possible to make the client feel good about having the most favorable of T&C.<\/p>\n\n\n\n

\u201cOn occasion, we\u2019ll go to the bank to see if they\u2019ll be flexible to do certain things,\u201d Swenson noted. \u201cBut it\u2019s pretty rare. More often than not, the questions are service related in terms of escalation or renewals.\u201d<\/p>\n\n\n\n

Keep it Simple<\/strong><\/p>\n\n\n\n

\"\"
David Carson, Plus Inc.<\/figcaption><\/figure><\/div>\n\n\n\n

The nature of the lease contract has helped reduce a large degree of red-lining, according to David Carson, president of Plus Inc. in Greenville, South Carolina. In the past, it was the larger clients that would raise questions about terms, regardless of how favorable it was for the buyer. It\u2019s the contract simplification that has made it less of an issue.<\/p>\n\n\n\n

\u201cMost of the leases now written are simplified one-page documents,\u201d he said. \u201cThere\u2019s not a lot to it. If you go back five years, the lease was two or three pages. There’s just not as many terms and conditions now.\u201d<\/p>\n\n\n\n

\"\"
Mason Smith, MTS<\/figcaption><\/figure><\/div>\n\n\n\n

Dealers such as MTS Office Systems in Greenville, South Carolina, take great pains to ensure sales reps are instructed thoroughly on what items in an agreement can be crossed out or amended. Mason Smith, president and CEO, feels the relationship between the dealer and the client is what matters most. Added enticements can often be the little push a client needs to ink the deal.<\/p>\n\n\n\n

\u201cIf a client trusts us as a company to put the best terms in place for them, they might have some questions, but usually those are easily answered and overcome,\u201d he said. \u201cIn regard to price, we discuss often that once a client is asking for a price concession, they typically have made a decision to come on board with our company.\u00a0 In that scenario, we try to give the client something such as free service, a throw-in printer, first quarter without a service invoice\u2014something that makes them feel good about their decision.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Contract terms and conditions are a part of business life, a necessary evil, if you will. Many leasing agreements contain boilerplate language and stipulations. That doesn\u2019t mean, however, that the client or prospect will see it that way. For a vast majority of business deals, the contractual agreement is a matter of course. Unless a client has always paid cash for all of its business technology needs, they\u2019ve been down the leasing\/financing road many a time. Still, astute negotiators will seek to ensure the terms and conditions are as favorable as possible. An indelicate term would be haggling. But we\u2019ll keep our language professional here in this month\u2019s opening State of the Industry report on leasing. Our dealer panel shares its views on how they navigate deals when either the client\u2019s legal department or chief negotiator steps into the fray. The larger the deal, the greater the likelihood that a client or prospect will request alterations to a standard agreement, notes Tom Ouellette, president of Budget Document Technology in Lewiston, Maine. Medical facilities and the K-12 education space are more likely to engage legal departments. Obviously, not all requested changes are major, and Ouellette tries to be accommodating as possible. When it does happen, he generally turns to its leasing partner, GreatAmerica, for clarification and insight. \u201cI let the client know it\u2019s a legal document,\u201d he said. \u201cThere are some changes that can be done by a lawyer. I generally pass it on to GreatAmerica. We\u2019ll set up a conference call where I can do the introduction, then let GreatAmerica work it out and see what the client will or won\u2019t accept.\u201d According to Josh Salkin, a partner with EDGE Business Systems, it\u2019s not so much a matter of expectation-setting as it is striving to ensure an equitable agreement. Striking a balance is the key here. \u201cWe try to work with our leasing partners to address special T&C changes clients want to strike through or modify,\u201d he said. \u201cAt the end of the day, it\u2019s about finding a happy medium between reasonable requests and unnecessary demands.\u201d Accommodating Clients Doug Pitassi has been in the industry long enough to remember when a handshake deal was all that was necessary. The president of Pacific Office Automation (POA) in Beaverton, Oregon, believes developing trust and earning a client\u2019s respect goes a long way when it comes time to lay out the terms and conditions. It\u2019s a low percentage that seek changes, he notes, and POA seeks to work out as many issues as possible when client legal teams go through the review process. \u201cWhether it\u2019s questions about indemnification, insurance claim charges, escalation costs\u2014anything that might be part of a contract\u2014we are ready to accommodate our client,\u201d he said. \u201cThe copier business has made it really simple. We bundle everything and put it into a monthly payment. We also make it simple for the client; we can always break it out and explain it to them. Building that trust is the key. If you treat them right, most of the time they\u2019ll agree to the terms.\u201d Legal firm clients are generally the most apt to seek changes on terms and conditions, but they also understand there are limits. Dean Swenson, president of The Swenson Group in Livermore, California, says that while many of the terms are not negotiable, they\u2019ll make as many concessions are possible to make the client feel good about having the most favorable of T&C. \u201cOn occasion, we\u2019ll go to the bank to see if they\u2019ll be flexible to do certain things,\u201d Swenson noted. \u201cBut it\u2019s pretty rare. More often than not, the questions are service related in terms of escalation or renewals.\u201d Keep it Simple The nature of the lease contract has helped reduce a large degree of red-lining, according to David Carson, president of Plus Inc. in Greenville, South Carolina. In the past, it was the larger clients that would raise questions about terms, regardless of how favorable it was for the buyer. It\u2019s the contract simplification that has made it less of an issue. \u201cMost of the leases now written are simplified one-page documents,\u201d he said. \u201cThere\u2019s not a lot to it. If you go back five years, the lease was two or three pages. There’s just not as many terms and conditions now.\u201d Dealers such as MTS Office Systems in Greenville, South Carolina, take great pains to ensure sales reps are instructed thoroughly on what items in an agreement can be crossed out or amended. Mason Smith, president and CEO, feels the relationship between the dealer and the client is what matters most. Added enticements can often be the little push a client needs to ink the deal. \u201cIf a client trusts us as a company to put the best terms in place for them, they might have some questions, but usually those are easily answered and overcome,\u201d he said. \u201cIn regard to price, we discuss often that once a client is asking for a price concession, they typically have made a decision to come on board with our company.\u00a0 In that scenario, we try to give the client something such as free service, a throw-in printer, first quarter without a service invoice\u2014something that makes them feel good about their decision.\u201d<\/p>\n","protected":false},"author":166,"featured_media":60580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,1650,82,1638],"tags":[4275],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/60579"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=60579"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/60579\/revisions"}],"predecessor-version":[{"id":60581,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/60579\/revisions\/60581"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/60580"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=60579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=60579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=60579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}