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Buying a Multifunction Copier 301 - Keeping Your Salesman Honest
This chapter is by far the most critical. Simply put, there are some things going on the copier industry that can leave a bad taste with someone very quick if they don't know the policies of vendors up front. These policies have nothing to do with the "speeds and feeds" of the machine, but everything to do with service after the sale. This section isn't directed to deter you from acquiring a machine, but make you a more informed buyer and to protect you from any unfavorable situation than can come up.
Service Credits
This is applicable only if your vendor's service has you setup on a cost per copy plan. It is estimated that a technician may run up to 6% of your volume during service calls to ensure optimal machine performance during a repair. For example, if you run 10,000 impressions per month on your machine, the technician may run up to 600 copies during his visit(s). Let's assume you get charged 1.2 cents per impression, that equates $7.20 for each time they may visit. Assuming you have the machine for 5 years, costs for these visits may cost you around $420 extra dollars. This situation only gets worse with a color enabled device, so make sure you clarify what the policy is for "clicks" ran during service calls.
Property Taxes
This is not applicable in all states, but more often than not, it will be. Make sure you know who will be responsible for paying the property tax on any lease that you do. Some vendors pay it automatically, but most of the time the customer will see it as an extra line item on the lease bill.
Removal Fees at Lease Expiration
Simply put, who pays? Are there any fees to return the machine if you don't renew a lease with a current vendor? Most vendors are the proverbial "middle man", selling and servicing the equipment. However with equipment leasing that is where there involvement is limited. Your copier vendor will facilitate the lease, but likely not have anything to do with the funding or servicing. This is important because at the end of the lease your dealings will be with the financing company--not your copier company. It is not uncommon to see charges associated with sending the equipment back to the financing company if you choose not to upgrade with your current vendor. Charges vary, but typically are no less than $500 plus the cost of the return amount. Not to mention, you are responsible for finding a freight company to ship it and you must crate and shrink wrap the machine so it is not damaged in transport.
Auto Renewal of Lease
Is there a line item in the lease contract that permits the leasing company to auto-renew the contract? Some leasing companies have a "window" of days from the date of lease expiration that permit them to extend your contract out another year. For example, if you do not tell the lender what your intentions are at lease end between 90-120 days out, you have just leased it again for another year.
Maintenance Increases and Adjustments
Is there a chance that your maintenance contract can increase during your lease? Also, will your "click" charge go up as well? If so, how much will this be? Make sure you get something in writing to protect yourself.
11x17 Impressions - 1 "Click" or 2?
If you are setup on a cost per copy plan, how does your vendor charge for tabloid or 11x17 impressions? Most charge for 2 "clicks", so know what you are getting into if you organization runs this size, it can dramatically affect your cost of ownership--especially if you are doing color.
Toner and Supply Delivery Costs
If you are on a cost per copy plan, does your supplier charge you for sending toner and/or other supplies to you? If so, how much? Make sure you ask about their policy so you can budget appropriately. Obviously, the more you produce the more often you will need toner and other supplies.
Other Fees To Ask About
- Scanning Charges - Does it cost anything to produce a scan? i.e. scan to file, scan to e-mail
- Lease Administration Fees - Any charges to process the lease? One time or monthly?
- UCC Filing Fees
- Delivery and Setup - Any extras for training and setup?
- Basic Network Connection - What is the policy for return trips? i.e. new computer setup, service issues
- Fuel Surcharges - Is there an extra charge during times of high gasoline prices?
- Color Calibration - Color equipment needs to be serviced occasionally for optimal performance
- System Overhaul - Any charge for patches or updates to the equipment after the initial sale?
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