I was in the field today and was helping one of my clients figure out an issue with his desktop MFP. This client is also on the board of a non-profit organization that has a seven year old color A3 MFP. Yes Ray, they need 11x17!
Why do some clients have seven year old MFPs? It's because they made a purchase and can't come to grips with spending additional dollars to get a new MFP.
Thus, I told the story of WHY ninety percent of my clients lease their MFPs. In fact a little more than eighty percent lease for 60 months. One of the main reasons for leasing is that clients don't get trapped with old technology and rising maintenance and supply costs. You see once you purchase the MFP and let's say the purchase was $12K, you'll be hard pressed to purchase another one if there is no immediate ROI (return on investment). Thus the client gets "trapped" with out dated technology and rising maintenance & supply costs. In addition the risk of downtime increases year after year.
In this case there was not an immediate ROI to the client. The client will have to pay more this year. There are no WOW features that will make the case to retire the seven year old copier. The only driving factor is the cost....until I found out that the organization is considering purchasing a folding machine for 2020.
Okay, I've got a play here.
I know that a decent folding machine (one that doesn't suck) will cost around $3,000 plus you'll have to factor in a maintenance agreement or at least factor in some dollars for when the folder needs service (they always do).
With my A3 Color MFP I can add a multi-fold unit for about the half the price that the client would pay to add the standalone folder. Thus I did the math for them by amortizing the cost of the standalone folder over 5 years with a few more dollars thrown in for maintenance.
The monthly cost for the folder with maintenance over 5 years would be about $70 per month (figured $20 per month for service which is fair). I added that $70 per month to their current cost for the maintenance agreement on the old A3 color MFP. Well, there was my immediate ROI savings.
I had to produce everything as a monthly cost because there was still no way they were going to spend another $12K. But they were planning on spending at least $3k for the folding machine. That's $3K a top of their current annual cost for maintenance and supplies.
I took those numbers and showed the monthly cost of the folder, the maintenance on the folder and the monthly cost of service and supplies for the existing copier.
The next monthly number was the new copier with the folder and maintenance and supplies. Yes, my monthly number saved money and cash out of pocket.
Did I do a good enough job selling the lease? I'm not sure, but hoping to find out in the next couple of days.