Ah, the age-old debate: should you lease or buy your next office printer?
Ok, well that might not be an “age-old debate”, however, it is a topic worth covering as copiers and printers affect the bottom line of almost all modern businesses around the world. Whether you are talking about a car or a copier, the same basic principals apply. In this article, we will look to understand the benefits and drawbacks of both leasing and purchasing, providing valuable insight that can be integrated into your office.
The BENEFITS of BUYING an Office Printer
- No Contract: When you purchase a printer or any asset for your business, you are free to use it as you wish. You are not locked into any agreement, with the option to sell your equipment at any time you want, providing the flexibility that many business owners value.
- Less Expensive Overall: Typically purchasing something outright will result in a smaller financial impact over the long haul. If the funds are readily available to you, this will be a benefit to you when you analyze your costs down the road.
- Recoup Some Investment at the End: When you are finished with your copier and printer, you may sell your unit to another business to recoup some of your initial investment. This was previously a much bigger advantage when technology did not advance so rapidly.
The DOWNSIDES of BUYING a Copier Outright
- Funds Required Upfront- If you are just starting out in business, or your cash flow levels are slowing, putting up all the funds for a new copying and printing unit may be difficult. If your business is cash-strapped, every dollar that goes towards equipment takes away from funds that could be allocated to marketing, sales or research.
- Technology Advances Quickly: If you are familiar with Moore’s Law, then you know that the processing power and storage capabilities of technology will double every two years. What does this mean for the owner of an expensive piece of technology-infused equipment? Your machine may quickly become obsolete, and you may even lose money if you cannot sell your outdated model fast enough. This is the reason that most growing businesses will completely overhaul their technology approximately once every 18 months.
- Difficult to Understand Maintenance: If you are a business owner that utilizes an office copier and printer, it is likely that you are an expert in a specific industry or field that is not office equipment. When it comes time to update or repair your machine, you may not fully understand what is required and be overcharged by a technician. Also, if your business has multiple locations, each location will likely have a printer that is a different model or series. This makes maintaining all of the units very difficult, where a line of leased units would all be similar to deal with (employee training) and not your problem when it comes to maintenance and repairs.
The BENEFITS of LEASING an Office Copier and Printer
- Up-to-Date Equipment: If you typically lease your vehicle, you appreciate having your finger on the pulse, always enjoying the latest technology. When you lease an office copier, you know that you have the fastest, most accurate and energy efficient machine on the market. While the business owner down the street is still waiting for his unit to load, your team is already working on their next project.
- Little to No Payments Upfront: The majority of lease agreements require no payments upfront, allowing your company to invest in other important areas, like hiring a new salesperson or building a new website.
- Predictable: When you lease a brand new unit, your monthly costs and operations will be predictable and stable. You will not be worrying about the cost or downtime associated with a breakdown because that is all clearly laid out in the lease agreement.
- Simple Maintenance Solutions: With a maintenance agreement, you always have the number of your technician right at your fingertips. Toner and repairs- these are the things that you should not be worrying about as a business owner. With a lease and maintenance agreement, you can leave all the details to them and focus on what really matters.
The DRAWBACKS of LEASING an Office Printer
- Long-term Costs are Higher: As a rule, leasing tends to be slightly more expensive over the long run than outright purchasing. You pay slightly more for the convenience of having the latest model and the repair and maintenance solutions that come included in your contract.
- Contract Restricts Variables: In return for providing a state of the art piece of machinery, the leasing company will use a contract to ensure they are protected. This means that even if you stopped using the leased unit, you would still have to fulfil your remaining payments. Your contract will also likely restrict how the machine is maintained. This means that you cannot have your friend in I.T come and fix your printer on the fly. A typical contract will outline who can make the repairs and how often maintenance must occur, regardless of your business levels.
Deciding to lease or buy your next copier/printer is an important decision that will impact your cash flow as well as your team’s productivity. Every company has a unique situation that requires a unique solution. If you are considering leasing or purchasing a new printer or copier, reach out to our team for a no obligations quote.
Unsure if you want to buy or lease? Reach out to our staff in Kelowna or Kamloops and we will walk through all the various options and costs with you at length!