I’m a financial news junky. Maybe that’s not good since most news has been bad the last few years. This morning the big focus is Italy’s debt. I’m still pondering why most of the spending referendums passed on Election Day in Texas. More bonds; more debt; higher taxes. People don’t seem to get it that things have changed and it’s time to say no to new spending ideas regardless of their altruistic intention.
I see the same thing with used copiers. We all know the business climate has been crappy the past few years. Most companies are getting by while things seem to go sideways. Last time this happened in the early nineties it was boon for used copiers. There’s been a slight uptick toward that this time as well.
As an industry expert I can assure you that there’s not much difference between a new copier and one that’s three to four years old yet many businesses go out and buy a new copier for three to four times the price of a late model used one. It kind of sounds like all the spending bills getting passed the other day in the Texas election even though the State of Texas along with local governments also have a debt problem.
I think people just can’t change their habits. One overpriced lease ends after five years and then they begin another one. Go figure. This worked during the roaring nineties but doesn’t make sense today with this dicey economy. My wife brings home shirts for $6 that use to cost $50 from stores like Goodwill. What is it about a struggling business that will still spend $12,000 for something they could have gotten for $3500 that does essentially the same thing.
The formula is pretty simple; lease it with service included and make sure there is a $1 buyout so the leasing company doesn’t gouge you at the end, or the vendor tells you that you waited too long and the lease renewed for another year. The other cost saving idea is not to build too much service into the lease. People are copying less and when the copies are included in the lease you bought them whether you make them or not. Put in 10% less than you’re currently doing.