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Product Guides & Buyer Advice
Small capital investment – Low monthly payments and no large upfront payment means more cashflow which is important for most businesses and crucial for new formed organisations when cashflow is likely to be most tight. Also, unless you significantly underestimate or overestimate your photocopier usage, you can closely predict what your monthly photocopier bill will be and this means you can budget effectively.
This means that you have less money tied up in a depreciating asset and you can then invest the money saved elsewhere in the business.
Choice – buying a photocopier does not give you choice over payment and support whereas photocopier hire does. When it comes to photocopier leasing you choose the payment terms and monthly amount you can afford and you choose whether you want to upgrades. Whilst having these options does mean in the long run the total cost will be higher, it allows you to effectively manage your finances.
Upgrades – You may be entitled to upgrades at the end of or even during the period your contract with your photocopier company. You will want clauses on upgrades to be stated in the contract to avoid doubt in the future as to what was agreed. Photocopier suppliers should want a long term business relationship with you and want to retain your business when you upgrade to a new photocopier and so they will be happy to include such clauses.
Ideally you will want the opportunity to renew to be optional so that you can compare prices offered for equivalent copiers by other photocopier dealers to ensure you are getting a fair price. The ability to upgrade is not only beneficial in terms of your office being able to use more advanced technology, it is also financially advantageous because new photocopiers are becoming increasingly more price efficient when it comes to cost per page, toner usage and energy efficiency so even if you upgrade to a more advanced and more expensive photocopier the efficiency improvements may enable you to make a net saving over the medium term.
The ability to upgrade also means that you are not burdened with a depreciating asset. Particularly as there have been significant advancements in photocopier technology over the last few years, the rate at which photocopier depreciate can be very quick. Not only is this an advantage of photocopier rental, it is one of the main reasons people avoid buying a photocopier.
Option to buy – After leasing your copier you may be entitled to pay the outstanding amount as agreed with your supplier to buy the photocopier permanently. This option is not viable for all types of photocopiers. For example, if you have a basic copier you are unlikely to want to buy it at the end of the term as by this time the copier is likely to need regular repairs and there will be far more advanced basic copiers on the current market.
However, in some circumstances having the option to purchase after hire is ideal and this is more likely to be in instances where you have leased a top of the range copier which because it is high performance will probably still be running efficiently at the end of the contract period and is a better option than leasing a new model.
Maintenance and servicing – when you lease a copier you will receive a level of technical support as standard in terms of maintenance, repairs and servicing. Where you select a high performance copier this support is likely to be free or cheaper. Otherwise, if you are leasing a cheap copier there will be a premium to pay for this support from your photocopier company.
Tax relief – tax is 100% deductible when you lease a photocopier, but only partly deductible when you buy it outright.
Cheaper ink cartridges – If you enter into a photocopier hire agreement then chances are you will agree for your photocopier supplier to also provide your toner. As photocopier suppliers buy toner in bulk they can often purchase toner at a significantly reduced rate and pass this cost saving onto their customers. On the other hand, some photocopier companies will charge more that the RRP for toner so ask them to confirm the price they will be charging for toner before signing on the dotted line.
Photocopiers For Sale Guide
Benefits of Buying a Photocopier for Sale
Ownership of the photocopier – If you choose to buy a photocopier you will own the machine outright, having cleared your debt to the photocopier company in one go. This means you will not have to worry about the monthly or quarterly cost of the photocopier as you would if you had leased it.
No interest payments – when your hire a photocopier you pay interest above and beyond the RRP of the photocopier, so the total cost of hiring a photocopier is likely to be greater than buying a photocopier outright.
No additional fees – When you pay for photocopier outright you will not be liable to the photocopier supplier for additional fees. When it comes to leasing, photocopier suppliers will charge you for copier usage on a per copy basis.
Cheaper extras – If you buy a photocopier for sale then you can shop around for the best priced ink cartridges and toner. If you enter into a photocopier hire agreement you may be obligated to buy your toner or ink cartridges from that photocopier supplier who may charge more that the RRP.
Disadvantages of Buying a Photocopier for Sale
Large capital outlay – most decent copiers will cost at least £2000 which is a large financial outlay and capital investment. This can cause cashflow issues, particularly in small businesses. This also means you have money tied up in a depreciating asset which restricts you from being able to invest the money elsewhere in the organisation.
No free upgrades – if you purchase your photocopier outright you will not be entitled to upgrades. Given the rate at which technology is advancing having the opportunity to receive free upgrades can be a big plus. The ability to upgrade is not only beneficial in terms of your office being able to use more advanced technology, it is also financially advantageous because new photocopiers are becoming increasingly more price efficient when it comes to cost per page, toner usage and energy efficiency.
Less tax efficient – Leasing a photocopier is also more tax efficient than buying one as there are greater tax savings to be made from having a photocopier hire agreement compared with purchasing the copier outright from the start. Hiring a photocopier can reduce your tax bill by claiming against the copier monthly payments as it is a business expense. Buying a photocopier is also tax deductible.
In the first year of trading it is tax deductible by 40% and 25% then following year. So if you rent a copier you it is 100% tax deductible, whereas if you buy a photocopier it is partially tax deductible.
Maintenance and servicing fees – when you buy a photocopier for sale you may have to pay a photocopier company each time your photocopier has a fault that needs fixing. Where as when it comes to photocopier hire, all of this is taken care of.
Photocopier Prices Guide
Photocopier Prices and Costs
The price of a colour photocopier will typically be slightly more than the price of a black and white photocopier, however, the main cost difference between the two comes in the form toner or ink cartridges. Very simply, black and white photocopiers as the name would suggest only require black and white toner. This toner is fairly cheap.
Colour photocopiers and hybrid photocopiers on the other hand, use coloured toner as well as black and white toner. Colour toner is considerably more expensive than black and white toner. Therefore consumables will cost more if you want a colour photocopier or hybrid copier.
However, reputable photocopier suppliers will be able to advise you on ways you can reduce the amount of colour toner you use when operating a colour photocopier or digital hybrid copier. Be sure to have inserted into your photocopier contract at what cost the toner will be supplied by the photocopier supplier otherwise your supplier may enter you into a contract where you are required to buy their toner at prices they can change at any time. Reputable photocopier suppliers will be happy to consider treatment of such clauses.
Guide to Choosing a Photocopier Supplier
Questions You Should Be Asking Photocopier Providers
The key questions you should be asking photocopier suppliers in order to ensure youthey can offer the right photocopier solution for youe business are as follows:
How long has the photocopier dealer been in business?
Which companies are the photocopier dealer’s major clients? If they manage well-known companies with large operations then this is a sign they are a professional outfit.
Is the photocopier dealer an authorised photocopier dealer? What is meant by an authorised photocopier dealer is a dealer than is authorised by a particular photocopier brand or several photocopier manufacturers to sell their photocopiers. Large photocopier manufacturers have a reputation to uphold and so want photocopier suppliers that sell their products to be reputable.
If a photocopier supplier is an authorised photocopier supplier then this means large brands are happy for them to retail their products and is a sign of a good photocopier supplier. Another reason you ideally want to source a photocopier from an authorised photocopier company is because brand software and hardware is always being updated and only authorised photocopier companies will be able to provide you with the official software and hardware updates.
How many brands of copier does the photocopier company sell? The majority of photocopier providers will either sell one brand exclusively or sell several brands. Either of these are fine, however, be wary of photocopier companies that sell a whole host of different brands as chances are they will not be photocopier specialists in all of these brands and you do want them to be photocopier specialists in the brand you want to buy or rent.
Ask the supplier whether they have technicians that specialise in repairing the make and model you choose. You should also find out whether the copier supplier has in-house photocopier repair specialists or outsources this to another company. Using a photocopier provider with an in-house team with save time.
Where does the photocopier dealer hold his stock? This is important when it comes to breakdown and repairs because if you require a replacement part then you will want your photocopier company to supply these parts quickly and therefore have stock located relatively close to your office.
Does the photocopier supplier have a customer showroom and can you visit their premises? By doing this you will see the photocopier company’s breakdown and repair centre, see how many photocopier technicians are onsite and see whether the repairs centre is well stocked with parts and toner.
It is a good idea to visit the showroom once you have selected several copiers to consider, so that you can test the photocopier onsite. If you do not do this the first time you will be able to test the copier when it is being installed in your office by which time you have probably entered into a photocopier service contract.
Please can you provide testimonials from your clients? The best photocopier suppliers should be happy to provide you with testimonials from their happy clients. If a particular photocopier company does not want to do this for you then alarm bells should be ringing. When you speak to the happy customer you can ask them all about the supplier to assess the things they do well and where their service could be improved.
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