The Pros & Cons Of Extending Your Office Copier Lease For Business
Is your organization unsure what to do with the office equipment it is currently leasing?
No biggie. We got you covered!
We understand how tricky it can be to know what to do when all you have ever done is lease equipment and replace it with newer equipment once your lease is up. But have you ever considered extending the lease on your current print equipment?
Several businesses don’t even know they have this option. While this option is great for companies that want to hold on to their current equipment a little longer, it may not be for everyone.
LDI has worked with several clients to extend their office copier lease as an independent copier dealer for over twenty years. While the reasons for providing lease extensions have varied amongst the various clients, we have worked with. We always offer it to those who are not ready to let go of their current devices.
For those of you who are uncertain of what it means to extend your office copier lease, this article will define it and provide both the pros and cons of doing so. By the end of this article, you will have a better idea of whether extending your office copier lease is the right decision for your company.
What Does Extending Your Office Copier Lease Mean?
When a business decides to extend its office copier lease, they keep the same printing devices onsite for its daily operations.
By holding onto the same printing devices, they choose to keep using the same devices they’ve been using instead of swapping them out for newer devices or getting rid of their printing devices for good.
Businesses usually choose this option if they are unsure what they want to do in the next six months to a year. This option allows companies to keep using the same print equipment they’ve grown comfortable using.
Why would a business choose to extend its office copier lease?
It depends. Suppose your business is pleased with the current print equipment and rather hold onto it than swap it out for another fleet of devices. In that case, extending your office copier lease could be a great option.
Let’s dive into the pros and cons that come with re-leasing your print equipment to help you make the best choice for your business’s needs.
What Are 3 Pros Of Re-Leasing Print Devices?
Extending your lease can benefit your business, especially if you’re pleased with the current print devices you’re using.
Let’s break down three pros of re-leasing your print equipment.
1. Provides Flexibility For Underutilized Devices
If your business does not know what to do with its printing devices for the next six months, extending your lease is a flexible option to consider, especially if the devices you’re leasing are underutilized.
Well, think of it this way. Suppose your company has barely used its print devices. In that case, that means that the devices you’re currently leasing are in good enough shape to keep using for another two to three years.
This is unlike over-used devices and has experienced a lot of wear and tear.
In addition, most service contracts with independent copier dealers or manufacturers will include a minimum of monoprints and color prints per device.
An excellent way to tell if a device is underutilized is if you did not exceed the minimum agreed upon within the contract.
2. Mitigates Safety Concerns
Depending on the size of your fleet, replacing all devices can be a big job for clients and the independent copier dealer you’ve chosen to work with.
This job will include a crew of people entering and leaving your office space to strategize replacing each print device.
Seeing as Covid-19 is still a threat, your office may not want to risk the safety of its employees if your business is abiding by an in-office or hybrid work model.
If your business does not want a crew of people infiltrating its office space, extending your office copier lease is a huge perk.
When you choose to re-lease your equipment, you get to continue working with the devices you’ve grown comfortable using while mitigating safety risks that could harm your staff.
3. It Can Reduce The Monthly Cost
In some instances, extending the lease on your print devices can lower your monthly lease payment altogether.
Well, typically, if you’re replacing your print devices with a newer model, the price of your monthly payments would increase.
However, if you’re choosing to extend the lease on your current print equipment, your payment would most likely decrease because the devices you’re choosing to extend have been used for a few years.
For example, suppose your business typically pays a monthly lease payment of $600 and has decided to hold onto its current equipment and extend the lease.
In that case, your business’s monthly lease payment would go down to $300.
What Are 3 Cons Of Re-Leasing Print Devices?
Now that we have outlined the pros of extending your office copier lease, it’s only fair that we cover a few cons to expect.
Here are three cons to consider when choosing to extend the lease on your print equipment.
1. Over-Utilized Devices May Require More Servicing
Suppose your business chooses to extend the lease on an over-utilized device. In that case, it is more than likely that you’ll be placing more service calls to keep it running effectively.
Now, this is unlikely if your device is underutilized.
However, suppose your company has exceeded the number of monoprints and color prints for each of its print devices. In that case, you can consider those devices overutilized.
As stated above, clients who lease their print equipment will have a service contract that specifies the minimum of prints paid for in their lease contract.
For example, let’s say they pay $1,000 for a set number of monoprints and $5,000 for a set number of color prints. If your business has exceeded that minimum number of monoprints and color prints, that is a great way to tell how much a device has been used.
The longer you hold onto a device, and the more often you use it, the more wear and tear on that particular device.
2. Cost Of Service & Parts May Increase
The longer you hold onto a print device, the more likely the service cost will increase along with any parts that need replacing if your device gets damaged.
Why is this the case?
As time goes by, the harder it becomes to source parts for print devices that have been on the market for a while. So if your business decides to extend its office copier lease after three years of leasing, sourcing a particular part may be challenging to do.
The part of a device that needs replacing needs to match that particular make and model of the device. So the older the device, the older the part, and the older the part, the more expensive it can be.
Likewise, when it comes to servicing older machines.
Servicing a print device includes maintaining it and repairing it if it gets damaged. If the device has been over-utilized and is an older model, typically, the cost of the parts, print consumables, and service you require will increase.
3. Older Devices May Not Be Compliant With New Infrastructure
Now, if your business is looking to refresh its office technology and revamp its infrastructure, extending your office copier lease may be a con.
If you’re updating your technology, the software on your current print devices may not be compliant with the software included in your new infrastructure.
Ideally, you’d want to be able to cloud share documents from your computing devices to your print devices for ease of use.
However, depending on the make and model of your print devices, choosing to extend your office copier lease may be a hindrance to ensuring one streamlined process.
Ready To Extend Your Office Copier Lease?
Whether you’ve reached the end of your office copier lease or trying to plan with six months more to go on your current lease, it’s imperative to consider the pros and cons of extending your lease.
As a rule of thumb, an office copier has a life span of about five years. After the five-year mark and depending upon the machine’s introduction of the machine – parts, supplies, training, and manufacturer support are all reduced.
If you’re still uncertain whether extending your office copier lease is the right move for your business, let’s try to picture a few scenarios that can help you decide.
Suppose your business is currently abiding by a hybrid or remote work model and has over twenty print devices with leasing coming to term in a month. In that case, it’s hard to tell if your business will still be operating the same way in a year, and it may be best to consider extending your office copier lease for at least another year.
Suppose your business has over-utilized its devices and superseded the minimum number of monoprints and color prints per device. In that case, revisiting your lease contract and replacing those devices with a newer model may be the better fit.
Here at LDI, we want to help you make the best decision for your business. We care that the devices you are leasing are still serving your printing needs and want to ensure that whichever option you choose is right for years to come.
To learn more about extending the lease on your print equipment, speak to an LDI representative today.