The TDSIT Blog

Purchase or Lease MFPs: The 7-Point Comparison

Posted by Tim Stanley on Fri, Sep 21, 2012 @ 01:22 PM

Office Equipment These days our business world is full of options. Full-time or contract? Sales or marketing? Two- or three-ply in the corporate washrooms? 

While the benefits of single-, double- or triple-ply are easy to fathom, knowing whether it is smarter to purchase or lease your new Multi-Function Printer (MFP) can be a toilsome decision. Which will get you the technology you need now to empower your users? Which one will be cheaper in the long run all things considered? Will it affect your service contracts?

There are plenty of elements to consider when deciding whether leasing or purchasing your new equipment is right for you. For example, will being able to write-off purchased equipment benefit your business? Will purchasing negatively impact your current cash flow?

Each side of the lease/purchase coin has its benefits, so consider the following points when deciding whether to lease or purchase your new MFP.

Leasing
When considering leasing equipment you should consider things like how long you will require the equipment for (and therefore how long the lease will be), is there a buy-out option at the end of the lease, what type of equipment guarantees are there etc. Be sure to consider how the following points affect your company's objectives: 

  1.  Cash Flow: leasing has significantly smaller upfront costs as the sticker price is deferred over the long term. This can free up company cash to invest in other projects. Not only is the upfront cost mitigated, you also can control your cash flow by knowing exactly how much you will need to reserve for lease payments. 

  2. Flexibility: Leasing agreements often come with flexible payment plans that allow you to customize your equipment payment schedule. In addition, leasing office equipment can empower you with upgrades and trade-in opportunities that upfront purchases often can't offer. 

  3. Value: When your lease ends the value of the equipment may by higher than that of outright-purchased machines—offering you residual value over time. 

Downsides: Often it is hard to know exactly how long that piece of equipment will suit your needs and early termination of lease agreements generally incurs expensive penalties. Also, you may get caught with automatic renewals with terms that are less than favorable to you. 

    It is best to think long-term before you commit to a lease, and discuss renewal options before you sign. 

    Purchasing
    When contemplating purchasing your equipment outright you need to consider issues of scalability, cost and value.

    1. Lower Upfront Costs: Purchasing your MFP(s) outright is generally cheaper in the long run as it locks in your costs for life and avoids you paying additional costs for things like penalties and interest. 

    2. Value: Owning assets may be a plus for your company in terms of liquidity. Purchasing your MFP(s) also gives you a write-off that could help your company with this year's taxes. 

    Downsides: Purchasing office equipment upfront can affect the scalability of your solution, along with negatively affecting your cash flow in the short term. Once you no longer have use for the equipment you may find it doesn't hold the same value it once did. Also, your trade-in and/or upgrade options may be limited—which can adversely affect you keeping up with technological advances. 

      Deciding whether to lease or purchase your MFP and other office equipment is an important—and personal—decision that must be carefully weighed. Whether your current circumstances dictate that leasing or purchasing is right for you in the long term, be sure to also carefully weigh what type of service contract(s) you'll be needing alongside the MFP. 

      If you've made the decision to purchase or lease equipment in the past, we'd love to hear how it turned out for you—we encourage you to share your experiences with us. 

      Click here to find out how much your business spends on print with our free print assessment

      Print Assessment

      Tags: control print costs, lease multifunction printer, scanner, copier, office equipment, fax machine, Purchase multifunction Printer

      MFPs to MPS: The Acronyms of Managed Print

      Posted by Tim Stanley on Fri, Sep 07, 2012 @ 09:29 AM

      MFPs to MPS The Acronyms of Managed Print

      Understanding your printing environment shouldn't be a mind-boggling task, even though the over use of acronyms like MFPs and MPS seems relatively puzzling. We'll introduce you to the current trend of breaking away from a decentralized print environment to an efficient and cost effective Managed Print Services (MPS) approach to printing in today’s office. 

      While MFPs are the current technology, with their myriad of features and functions, the way these MFPs are administered is changing. Whats on the horizon for the office printing industry?

      Enter MPS. MPS isn't a new technology per se, it's existing and upcoming state-of-the-art approach to office printing, through a services led strategy that leverages your existing equipment infrastructure allowing for the following; monitoring of all print related activities and costs, proactive service and toner replenishment and consolidated billing resulting in less invoices to process. MPS is the new trend leading the print industry, and for good reason:

      • Uptime: when your print environment is managed for you, your company has more uptime thanks to proactively scheduled service and maintenance, along with automatic supplies replenishment and technical support. 
      • Controlled Costs: you have control over all document output costs as a result of an MPS service program which utilizes a rules based approach to printing in your office. 
      • Intelligent Print: MPS allows for intelligent print capabilities with end-user controls which can restrict or enable specific user-access levels and print capabilities. 
      • Workflow Integration: MPS can be integrated with other workflow solutions to improve on overall employee productivity and document workflow. 

      In today’s cost conscience economy MPS is the most logical approach. A well run managed print program increases your printing intelligence by providing cost visibility and cost controls in one of the last areas of unaudited business expense – office printing. When you combine these factors with the bottom line cost savings that can be enjoyed through a managed approach to printing it is easy to see why more and more busy offices are now flocking to MPS. 

      Click here for your free, no obligation Print assessment

      Print Assessment

      Tags: managed print services, save money on print, printer, scanner, copier, office equipment, fax machine