An office copy machine is the centerpiece of any workspace. It’s essential for countless tasks throughout the day, but it can also be one of the most expensive investments a company can make, with the average company spending 3% of its revenue on printing. At some point, every business is faced with the dilemma: is it better to rent or own a copier? Just as every situation is different, every company will have a different response to this choice. Rather than give a direct answer, this article will take you through the various pros, cons, and factors to consider and help you make the best choice possible for your workflow.
Copier Rental Explained
As the name indicates, copier rental is the leasing of a copy machine from a provider for a set period. The company never owns the machine but has full use of it until the term expires. These periods can range anywhere from six months to a few years.
Every copier rental company differs in specifics but shares some broad similarities. For example, paper and toner are typically not included in a rental agreement, and repair work would be the responsibility of the rental company.
Renting vs. Leasing
While these two terms are often used interchangeably, they are both quite different. Leasing is a longer and more binding agreement. It’s not unusual to see five-year leases on office equipment. At the end of this period, the equipment can be returned, upgraded, or bought outright for fair market value (FMV) from the rental company.
On the other hand, the company renting the copier is bound to this agreement until the end of the lease. So, if a copier has served its role before the lease is up, it may gather dust yet still cost the company in lease payments. Breaking the lease is possible, but termination fees will almost always be incurred.
By contrast, a rental offers a more flexible month-to-month contract and is shorter than a lease. While this smaller timeframe is more expensive, renters have more freedom to cancel at any point. This can be useful when looking for a less binding contract or if regular equipment upgrades are essential. There’ll be no option for ownership at the end of the term, but that won’t matter to everyone.
Pros of Renting
There are many reasons that an office may choose to rent their copier. It’s an option that has many merits:
- Initial Savings – Cash flow is important to any new business. Pennies need to be pinched and prioritized wherever possible. Copier rental requires very little initial investment, often with no down payment, and is the cheaper choice initially. It’s a viable short-term solution to conserve capital.
- Ease – Rental is often easier than leasing. There are also fewer legal requirements involved that can make it easier for those with low credit scores to access equipment.
- Flexibility – A copier may be needed for a few months, or the end of next year. What matters is that the terms can be tailored to the renter. Renting means that the copier can be returned when no longer needed.
- No upgrade or maintenance costs – A copier can be expensive to maintain and can quickly become obsolete in a few years. This can be a massive burden to a new business. With renting, that burden is placed on the rental company, whose job it is to keep the copier running and up to date.
Cons of Renting
Of course, rental isn’t without its problems. The question is whether or not they become prohibitive to a business. Here are the major drawbacks:
- Long-term expenses – It’s better to own than to rent, as the saying goes, and from a financial perspective, the same applies to copiers. While rental is good value for the short term, over time the monthly costs start piling up. You’re paying for the convenience. Renting a copier for a few years will be more expensive than buying one.
- No ownership – While leasing may give a renter the option to buy after the term expires, rental offers no such benefits. There’s no asset leverage or equity with a rental.
- Supplier limited – Though a well-stocked supplier will always have the right machines on hand, there’s always a risk of limited availability, which can be problematic for renters who need specific machines. Should the rental company go out of business or not repair machines, then workflow may also be affected.
The Costs of Copier Rental
Rentals come with their own set of considerations, but cost will be the deciding factor for many. The average rental cost for a copier can vary widely from $50 to $900 per month. While renting is cheaper initially, there are several other factors that will determine the monthly fee:
- Copier specs – Monochrome copiers that output 20 pages per minute are some of the cheapest rentals out there. With faxes, scanners, LAN capabilities, and high speeds come rising costs. Be sure to choose the copier that best matches the office workflow, scaling up only when needed.
- Brand names – Well-established copier brands may have a reputation for high quality but will also come with a similarly high price tag. Remember that not all smaller brands are of lesser quality and vice versa. Ask a specialist for better deals.
- Surplus charges – Some rental companies charge if you exceed a monthly copy total excess usage charge, while others may ask for a down payment upfront. Be aware of these extra charges before committing to any rental agreement.
- Insurance – Things can go wrong in any business environment. Insurance keeps a renter free from any liability but at a certain cost. Decide whether or not to insure the copier beforehand.
- New or refurbished – Copiers that have been well-used or older will often be cheaper to rent. If the cutting edge isn’t important, then it can be quite cost-effective to choose this option.
- Service levels – Some rental companies will offer toner replacement and other bonuses as part of a rental agreement. Others may charge extra. Be sure to confirm when obtaining different quotes.
Making the Right Choice
Ultimately, copier rental will come down to cost vs. functionality. If looking for a short-term copier with the latest technology, then rental is the way to go. And if you’re looking to rent anywhere in the Mill Creek area, then get in touch with us. We have an extensive range of products for every office and 30 years of expertise in the Pacific Northwest to help you make the best decision for your business.
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