As a followup to last week’s video, leasing technology vs. purchasing technology, this week Josh shows you a very cool math trick to use when determining which option is better for you. For leasing: with your calculator, input the average purchase price of a mid-range multifunctional copier and multiply by a common lease rate and that will yield how much you will be spending approximately per month.
Ex. 5,000 avg purchase price of a mid-range MFP
multiplied by six months (a common lease rate in our industry
yields $100/mo. for five years.
Which is better for your business? Purchasing the equipment once for $5,000 and owning it or leasing the equipment at $100/mo. For the next five years? Keep this in mind: our manufacturers introduce new product lines every 3 ½ to 5 years. If you are 42 months or 3 ½ years into your contract, using the same information above, you’ve paid around $4200. Then you receive a call from your account representative from AAA Business Systems, and they tell you that a new product line is coming out and the color cost per page is drastically lower than what you’re currently paying, we can save you money on service, or the new features on this new equipment will help your business run more efficiently. At that point, you’ve only spent $4200 instead of $5000. The best part is you can terminate your contract, upgrade to the newer technology on a five-year contract with AAA Business Systems, and be able to keep the overall monthly payment around the same price. So instead of purchasing technology that will eventually become obsolete and inefficient in your business, leasing will keep you in new technology while not paying much more in the end. You’re keeping your technology current, your staff happy, and keeping your business running efficiently.