Buying Vs. Leasing Your Office Supplies
Have you been tasked with deciding whether you will lease or buy your company’s copiers, printers, and fax machines? Don’t worry! Let’s plug into which option is right for you and your business.
Consider the two main types of business products’ leases:
Capital leases and Operating Leases: The Positives
Most companies go for operating leases because this lease type offers cheaper monthly payments than capital leases. When your company gets an operating lease for a printer, fax machine, or copier, you are renting the equipment. When an operating lease ends, you have the option to purchase the product, but the price tag will be decided upon by the entity or person who gave the lease based on agreement terms, wear and tear, and other factors. Therefore, operating leases are the right choice for business who rather consistently upgrade their equipment without the full upfront cost.
Capital leases aren’t as popular for most companies. This type of lease is like a loan on the money, not exactly a rental on the tool. Therefore, the money and interest paid goes toward the cost of the equipment. It’s no surprise then that the monthly price tag for a capital lease is more because the entire cost of the equipment is being financed. If your business wants to buy and own your copier(s) or printer(s), but do not want to make the entire purchase up front, then a capital lease is for you.
The person who takes out a lease pays interest. Surprise, surprise, the leasing world is a business who needs to profit too. And at the end of many lease terms, the person who leased their equipment paid more than the actual value of the equipment leased.
For small business owners in Bakersfield, getting trapped in a printer or copier lease can become bad for business. As companies evolve, printing and copying needs change too. Therefore, equipment that was leased when your company only had 7 employees may not work for your now 40-person staff. Also, many small business owners get excited and think they need a specific kind of fax machine or copier and become trapped in a contract lease for something their specific business didn’t need.
Most times, it’s actually less expensive to buy your equipment than it is to lease because leasing companies want to gain profit from your interest. Plus, you can take advantage of a sale or offer incentive and lock in pricing with a trusted technology company.
Get Some Money Back
Although many products such as printers and fax machines lose their value in comparison to previous generations, a used printer can be sold for some money back. In contrast, a leased printer cannot be sold.
A leased copier or printer owned by the person who leased it out has leverage over the person who takes out a lease. The person leasing a product cannot perform maintenance on it in the event that it needs it. Therefore, the person who leased the printer has to rely on the person doing the leasing if their product stalls or breaks. However, if your company owns your printer, the owner or an employee tasked with maintenance control can hire a tech company to service their equipment without outside delay or hassle.
Sometimes, the expense of buying a printer upfront is too costly for some small business owners. If your business needs high-end, industrial printers, sometimes a lease works better.
When your equipment is no longer working or becomes below market standards, you or your business owner is responsible for replacing it. These charges create setbacks for many business owners. However, if you as a business owner become aware of it before you purchase your next office equipment investment, you won’t be as surprised way down the road. Don’t want to deal with replacement costs sooner than you hoped for? Your business should purchase time-trusted products.
Don’t Deal With Replacement Costs Sooner Than You Planned. SBS of Bakersfield Works With Premium Electronics
SBS is proud to work in conjunction with SHARP electronics. Offering the best in printers and office automation technology so that your upfront purchase costs will bring you an exceptional return on investment and reliability for years to come. No messy leases. The best in office technology.
At Sharp Electronics Corporation, our challenge is to create a balance between work time and personal time, with products that can benefit people’s lives at work, at home, and everywhere in between. Click here to visit the Sharp website and see all the Sharp models that we offer.
Our goal is to educate our client’s on tools that will make their business operate more efficiently and ultimately save them a ton of money! If your company is looking to operate this way, give us a call and our business consultants will be happy to outline how.