What additional costs could I expect to see on my copier contract? (Part 2)

What additional costs could I expect to see on my copier contract? (Part 2)

(Submitted by Gareth Stevenson) In last week’s blog we covered the (5) additional costs of administrative fees, transitional billing, property tax, toner shipping fees, and insurance costs. In this week’s blog, we are going to cover (5) additional costs that you may see on your contract when leasing a copier or multifunction device (MFD). Those additional charges may include:
  1. Contract Overages
  2. Name Change Fee
  3. Remote Support Billing
  4. Staples
  5. Additional Billing for Service
1. Contract Overages Typically, when you agree to a contract for a copier, this contract includes a service proviso for the leased or purchased device and includes a contracted base amount of copies, either monochrome, color, or both. When you exceed this contracted base amount, then you can expect to pay overages. The overage charges can vary dependent on the age of your device, promotional deals, etc. There are ways to use rules and reporting to assist with managing overages, such as:
  • Account Codes – These codes can be used to limit the amount of color prints allowed or to provide reporting of prints, whether color or monochrome.
  • 3rd Party Print Management Tools – Ex. Papercut.
2. Name Change Fee Some leasing providers charge a small fee for any business name changes. This fee can range from free up to $100.00. 3. Remote Support Billing Remote support for assistance with print drivers, scanning issues, etc. is more often than not included in your contract, but could have yearly limits on use. If you don’t have remote support included in your contract, then you will receive an additional bill with a per-hour charge for any service calls that you place. The per-hour charges can vary from $150.00 – $250 per hour, depending on the provider. 4. Staples Staples are not typically included in most contracts, apart from some government contracts. In commercial contracts, if they are not included in the contract, then they are added as a chargeable item. In those cases, the price for this add-on can vary from $50.00 – $100.00 per box of 10,000 staples. 5. Additional Billing for Service Some organizations offer different types of service contracts, but the most common contract is an “All-Inclusive Contract” that includes everything except the paper and staples. Other contracts, like those listed below, may incur additional charges to the customer.
  • A. Basic Contract:
    • Includes parts and supplies only
    • No toner, developer, or drum included
    • Other additional charges may apply
  • B. Mono Toner:
    • Monochromatic toner and all monochromatic toner parts and supplies are included
    • Additional charges for color toner
  • C. No Service Contract:
    • Service calls are billed on a per-call basis with charges ranging from $150 per hour plus the cost of parts, labor, and travel time
If you have any additional questions regarding contract charges, please let us know. We would be happy to assist you!

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What additional costs could I expect to see on my copier contract? (Part 1)

What additional costs could I expect to see on my copier contract? (Part 1)

(Submitted by Gareth Stevenson) When leasing a copier or multifunction device (MFD), depending on the dealer or the service package that you agree to, additional charges may sometimes apply. Listed below are some of the additional charges that you may see on your service contract:
  1. Administration Fees
  2. Transitional Billing
  3. Property tax
  4. Toner Shipment Fee
  5. Insurance
  1. Administration Fees If you lease your copier, then there may be a one-time documentation fee from the leasing partner. This fee covers the administrative duties related to setting up your lease account. These fees can vary from $75.00 to $150.00. If you purchase your copier, then this fee would not apply.
  2. Transitional Billing This charge is determined by the date that your vendor bills you monthly. The charge includes the prorated monthly amount up to the billing date plus your first month’s contracted amount. This is a one-time charge occurring when you first transition over to a new lease and will result in your initial bill amount being higher than the agreed contract amount.
  3. Property Tax Because the MFD is a tangible asset, property tax is applicable if your business is registered as a for-profit organization. If, however, your business is registered as a non-profit organization, then property taxes would not be applicable. For specific information on this, we recommend contacting your tax professional.
  4. Toner Shipment Fee Due to the increased charges for processing, shipping, and handling of supplies, there may be additional shipping fees associated with delivering toner promptly. These fees can vary by organization and could be applied in one of the two following ways: • A flat monthly fee averaging between $10.00/month – $15.00/month. • A shipping fee determined by calculating a per print/copy cost, ranging from $0.0005 – $0.0009.
  5. Insurance Whether you purchase or lease a MFD, you will want to ensure that the asset is protected so that you are covered in the event of any unforeseen accidents or disasters. 95% of MFDs are leased by organizations with the copier being a tangible asset owned by the leasing company, who will want to ensure that their asset is protected. Therefore, on your first bill you might receive an insurance offer from the leasing company. The price for the coverage offered could range between $17.00 – $25.00 per each device.

    Please note that you do have the option to decline the leasing company’s insurance in lieu of placing the MFD under your own business insurance. If you choose this option, then most leasing companies will ask for proof of insurance to ensure that the asset is protected.

    If you opt to purchase a device, then you may still want to ensure that you have your asset protected under your own business insurance.

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What does it cost to add accessories to my printer?

What does it cost to add accessories to my printer?

(Submitted by Brent Perry)

The costs of adding accessories to your multifunction device will be based on the length of your leasing contract, which typically ranges from 36-60 months. Overall monthly costs will be greater with a shorter lease term.

 

Are you a non-profit organization such as a church or school? Are you a medical organization such as a doctor’s office, veterinarian’s office, or hospital? If so, then you may qualify for our discounted non-profit or medical pricing which would affect your overall costs as follows:

  • Non-Profit Contract Pricing: Subtract 15%-20%
  • Discounted Medical Pricing: Subtract 35%-45%

 

Are you considering adding additional paper sources to your multifunction device? If so, pricing could be as follows:

  • 1 Additional Tray: $16-$25
  • 2 Additional Trays: $20-$31
  • 3 Additional Trays: $32-$50
  • Large Capacity Tray: $32-$50

 

There are a variety of finishers that you can add to your multifunction device, including inner finishers, hole punch finishers, and even saddle stitch finishers for creating magazines and booklets! Listed below is pricing for a few of these finishing options:

  • Inner Finisher: $35-$54
  • 1K External Finisher: $46-$72
  • 1K External Saddle Stitch: $57-$88
  • 3K External Saddle Stitch: $109-$170
  • Hole Punch: $14-$22
  • Folding Capabilities: $48-75
  • Paper Pass Unit (required for external finishers): $8-$13

Still have questions? We can help! Use the contact form on our Contact Us page to let us know what you’d like more information on.

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How much could it cost to upgrade to a color copier?

How much could it cost to upgrade to a color copier?

(Submitted by Wayne Parrish) In today’s world, 75% of all multi-function printers (MFPs) are color devices. When trying to decide whether to upgrade from your current black-and-white device to a color device, here are some items you may want to consider:
  1. First off, determine if having color is more of a want or an actual need. For example, if you are trying to promote your company in the marketplace and want to create some “WOW” factor, then printing your marketing materials—brochures, flyers, etc.—in full color can go a long way in making a lasting impression on potential customers.
  2. Also, ask yourself if you currently own or lease desktop color devices that you yourself are having to purchase supplies for, such as toner or parts? If the answer is yes, then you may be surprised to find that over time these devices can become quite costly for you to operate. In these cases, it may make sense for you to upgrade your device to a larger color MFP. Upgrading may allow you to have more control over your overall operating costs as well as having the added benefit of providing you with a device that has increased functionality and produces higher quality printed materials.
  3. Another factor to consider is the paper type that you are using to print your color documents on. The paper weight and texture will greatly affect the end result of your color prints. For example, normal copy paper weight (or thickness) is 20 lbs. per sheet and tends to have a less smooth finish or texture to the touch than higher quality papers. With a thinner paper like this, the ink tends to soak in unevenly and can create a blotchy appearance to your color print. However, with heavier weight papers that have a smoother finish, the ink will sit on top of the paper instead of soaking in, producing a crisper, more vivid print. Therefore, if you need the color on your prints to be the best that it can be, then printing on higher quality or heavier stock paper will help you to achieve this goal. Just remember that the additional cost of higher quality paper will have to be factored into the overall cost of the print project.
Some final facts to leave you with:
  • Typically, in today’s market, upgrading to a color MFP may only increase the lease or purchase cost between 10-30%, depending on the system options, incentives, and size of the product.
  • With some service contracts, the cost to print color pages is typically between $.03 – $.08 extra per page versus black-and-white prints.
  • Furthermore, costs can be better controlled with service contracts versus purchasing supplies on your own. Under a service contract the cost per page to print in color remains constant no matter how much ink you run on a single page. For instance, the cost to print a page that has only a color banner across the top is the same as it would be to print a page edge-to-edge with full color. The same is not true if you are purchasing supplies on your own because, of course, if you use more ink, then you will therefore have to replace the toner sooner due to the increased ink usage, resulting in higher print costs overall.

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