When you begin working with a Managed Print Services (MPS) partner, there are many potential options such as printers, copiers, and multifunction devices that are best for your office's environment.
But the choices don't stop there. If you decide to add one or more new devices to your fleet, a big decision must be made—whether to lease devices or purchase them outright.
So, why might a business want to purchase a device rather than lease it? And which choice is the best one for you?
What Are the Benefits of Leasing a Printer?
By leasing your office's printer, you can make a smaller investment on the front end. Enterprise-level print devices are expensive. They can easily run into the thousands—or even tens of thousands—of dollars! Rather than pay for the machine all at once, a business instead can pay in increments.
Another benefit of a lease is the ease of refreshing your printer fleet. With most contracts running between 36 and 60 months, it’s possible to refresh or upgrade their hardware at the lease's end. That means that the older machine can be replaced with a new device every three to four years.
There's also the option to buy out the printer or copier at the end of the lease for a determined fair market value. A buyout can even SAVE money. That occurs if the printer's manufacturer, like HP or Xerox, has a promotion or rebate that could help pay off the last few months of a lease.
Additionally, you can decide not to renew, refresh, or buy it out at all. Instead, you can return it to the leasing company.
Essentially, by leasing printers or copiers for your office, there's more flexibility and less commitment.
Why Shouldn’t I Lease a Printer?
For many organizations, printer leases offer companies a great device at a fair price. They also provide an easy way to upgrade your print devices. This ensures that all machines are modern, meet business needs, and offer the highest in-office print security measures.
However, there are some downsides. The most significant is the higher total cost due to additional financing charges. Most managed print leasing contracts will have a financing agreement attached. This adds a small fee to the monthly bill.
Additionally, if a device is within a lower price range—which usually implies under about $2,000—we often suggest that companies purchase the equipment upfront. Typically, desktop printers fit into this price range while copiers and multipurpose devices exceed it.
However, as every company is unique, exactly where this line is defined can significantly differ. Talk to your managed print service partner to see where this line lies for you.
Another reason to buy a printer or copier outright is that your company has the available capital. If you can afford the device without financial strain, why not save money and the hassles of contracts?
Lastly, purchasing a device allows companies to avoid any additional costs tied to a refresh. Even if the monthly cost of the new machine doesn't change, there typically are fees related to installation, software upgrades, etc.
How Can a Managed Print Service Help?
Especially for larger organizations, print leasing agreements can get complicated. The most complicated situations occur when a company has multiple active leasing contracts, some of which have various start and end dates.
It’s can be tricky to keep track of when it's time to renew, buy out, or refresh a machine. With multiple calendars and agreements to juggle, it's also tricky to accurately keep equipment and operational costs in check.
First off, managed print service providers assist businesses in streamlining existing printer leases and contracts while also adding any new ones without complication.
Secondly, by partnering with a single managed print partner, you and the MPS team can work together to make your entire print fleet and overall process more efficient. They can also conduct an in-depth analysis and print assessment to help you make the right contract decisions.
With the final report and analysis, the managed print service provider can break down various pricing options, including what you could save on print costs. Often, we find that customers can save thousands by upgrading equipment, buying rather than leasing (or vice versa), reducing the number of devices, or paying off a rarely used machine.
If you're unsure whether leasing, purchasing, or buying out your devices is the right move for your company—or you have any other questions about creating a smarter print environment—trust the team at imageOne! Set up a free, 15-minute Discovery Call, and we'll determine the right next steps for you.