Tagged With "Un-Lease"
Reply
Re: Bad salespeople still exist, don't they?
Spot on Art. I love Gary Vaynerchuk's famous quote, "Legacy is greater than currency." You never know where you will be in 5 years. Walking away from every deal with your reputation and integrity intact is more important.
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
In my opinion, what the dealer was funded is not material. That is between the dealership and the leasing company. If it truly is insurance to cover just the device you either insure for the amount necessary to cover the debt should something happen which would be sum of payments plus the residual value or insurance to cover the replacement cost. However, most office equipment is covered under a blanket policy covering all building contents.
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
To be on the safe side, I always give my clients the MSRP on the equipment as the number they should provide to their insurance company.
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
txeagle seems you may have the best answer, just quote them MSRP and we should be safe. We just went through one of these where the copier was damaged by fire and was covered under the BOP policy. The insurance company paid the stream of payments plus the residual. I'm always somewhat concerned when I have to quote a price to the customer and then that customer uses that for the value of the equipment to the leasing company. If you sell at MSRP and the equipment is leased, then you need to...
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
If you sell at or above MSRP due to significant GP or because a buyout was involved, I would quote the Stream of Payments of the hardware + the buyout, excluding the portion of the monthly payment attributable to Service/Supplies in the case of a bundled lease/service agreement.
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
Tx, ty for this this. I don't bundle MA/Supplies. I just don't want my customer to get jammed in case there is a loss. We've had quite a few losses here in NJ with the storm from a few years ago. I'm just looking for the right thing to do for customers who opt out of the leasing companies insurance. I'm somewhat skeptical of giving them stream of payments plus residual, may open up a can of worms.
Reply
Re: Leasing, Insurance, Padded Rates, Buy Out Price
I've had the question come up a few times over the year and I simply give them full MSRP for the machine and all accessories as the amount.
Reply
Re: NJ lease question
Art - As a general rule, when leasing to Muni/State Agency/Poly Subs, the customer can choose the lease structure that best fits their needs - Tax Exempt Muni Lease,standard $1.00 out, FMV lease agreement, Rental Agreement, etc. In New Jersey, tax exempt municipal leases and FMV are widely used. Based on my previous conversations with Muni leasing experts, leases cannot be longer than 5 years and all must include a fiscal funding/non-appropriation clause with the agreement. Technically each...
Reply
Re: Xippa Releases Church Platform for Copier Lease Contracts
oops, someone forgot the c's. " In addition to its offering to vorporate vustomers," In addition the term is "Where there is margin there is mystery" not "there is margin in the mystery". While Wade brings up a few good points, he could definitely use on our with the copier industry language.
Reply
Re: Percentage of Office Equipment Leases?
I don't have any "data" but I will say that probably 80%-90% of the deals we are involved in are asking for a 36 month term. I will also say that where leasing used to be predominate, now leasing is required in less than half of the placements.
Reply
Re: Percentage of Office Equipment Leases?
I don't have any real data without putting a bunch of time into it but I can tell you that we rarely do 36-month terms these days. Perhaps 15%. I've got one major account that does 39-month terms. The rest are 48 and 60. At one time I used to do a lot of 42-month leases because DLL had a rate special.
Reply
Re: Percentage of Office Equipment Leases?
75% of our business is lease. Of our lease 90% are 60 month
Reply
Re: Percentage of Office Equipment Leases?
@Deanw thanx for this. Wow, 90% are 60 months, is that because you lead with 60 months?
Reply
Re: Percentage of Office Equipment Leases?
We are also 90% of 60 month terms; I don't even quote other terms unless the customer specifically asks for it. The percentage of leases vs. purchases is even higher I would say; 96% are leases. Very rare customers write a check for their equipment.
Reply
Re: Percentage of Office Equipment Leases?
I used to always quote just 60, know I quote 36 standard and options for 48 and 60, just my way of whittling down the amounts of clients that take 60 month leases. I’d rather be back in at 30 months rather than 55 months
Reply
Re: Percentage of Office Equipment Leases?
What do you sell your customer if there wasn’t a model generation refresh during that 36 month period?
Reply
Re: Percentage of Office Equipment Leases?
That brings up a good point. Of course it depends on your payplan but I would have great difficulty making my G.P. numbers if I didn't have renewal revenue from my 36 month leases. Anymore, there just isn't a good reason in my mind (in most cases) for someone to change equipment after just 3 years. I lower their payment 60% and still make good commission...they're happy, I'm happy, and my company's happy. I get a sale every 3 years instead of 5 with a much higher revenue and G.P. toward my...
Reply
Re: Percentage of Office Equipment Leases?
Agree with @oldglory we shoulod push more shorter term leases, good for us and good for the client Especially for dealerships that have high escalation clauses in the maintenance/supply agreement. Lately manufacturers have not been refreshing the models like they did three years ago. On average it was every 24 months, now I'm seeing models hanging around 36 plus months.
Reply
Re: Percentage of Office Equipment Leases?
I just got bit by Ricoh not refreshing models. Had a customer come to end of term on a particular model (MP C401sr) that has not refreshed now in over 4 years. It launched in May of 2014 and has never been refreshed. To me that's inexcusable. Because of the configuration I had nothing to offer the customer other than a brand new machine in the same model and configuration as the old machine or the option to take the Buyout to keep. The customer took the buyout. It really burns me to have a...
Reply
Re: Percentage of Office Equipment Leases?
I feel your pain!! I have C8003's out on three year leases that are due soon and there is no upgrade path there also. What worries me even more with Ricoh is the fact they are not manufacturing any of their A4 black devices anymore. I think this entire move to services is going to affect all of the refreshing, except for color MFP's and production.
Reply
Re: Percentage of Office Equipment Leases?
Wow, I did not realize that Ricoh is not manufacturing their A4 mono. Who manufacturers the IM350/430 series?
Reply
Re: Percentage of Office Equipment Leases?
They are made by Kyocera, Ricoh puts there tablet aka interface in replace of the Kyocera one
Reply
Re: Percentage of Office Equipment Leases?
Are you sure? BLI says OEM is Ricoh. Drum lifes are pretty short for a Kyo product.
Reply
Re: Percentage of Office Equipment Leases?
Take a look from the first try up on the Ricoh and compare to the Kyocera. Except for the interface they are identical. Both have the same print speed of 62ppm. In addition the Ricoh product guide does not reveal the drum life. The MP 501 and 601's were also the Kyocera print engines. There are small differences between each model. However you can see by the picture that these two devices are identical except for the interface of the Ricoh. I believe this was one of the trade-offs that Ricoh...
Reply
Re: Percentage of Office Equipment Leases?
I agree on the MP501 and MP601 but the IM350/430 series....who do you think make those?
Reply
Re: Percentage of Office Equipment Leases?
Not sure who makes the IM350/430 series. It may be Ricoh. Not a big fan of these products but I sell them because I have to. Wish Ricoh would bring back the MP201spf.
Reply
Re: Percentage of Office Equipment Leases?
I noticed that the new PC600 color printer also looks to be a Kyocera product. Those funky shaped waste toner bottles were the give away. As for leases I always lead with 36 months, I agree with Art that I would much rather approach the customer at 30 months rather than 55. The only time I even show a 60 month is if I know the customer is shopping a competitor who pushes 60. It usually seems like its the larger dealers pushing 60 months, maybe for the escalation revenue in years 4&5? I...
Reply
Re: The One Device in Your Office That's Sucking Away Productivity (Infographic)
This is funny, because the article makes no mention that Brother devices have some of the highest cost per page costs, along with consumables that have a hard time delivering yields. More importantly, is it not right to talk at the centralized MFP? Should we all just sit at our desks for four hours at a clip. Medical reports now seem to indicate that sitting is one of the worst things you can do for extended amounts of time.
Topic
Rule of 2 & 3 for leasing
Rule of 2 & 3 for leasing I find the easiest way to quote a monthly lease cost while with a prospect is what I call “the rule of two and three”. This works for quoting 36 and 60 month terms in your head. Round up the purchase price, thus if the purchase is $8,800 round up to 9,000 and multiply by 3 and drop the last two zeros. Lease price would be $270. Use that same method for 60 months, but replace the 3 with a two. I use will use the word “around” $270 and then use a calculator for...
Topic
Pahoda Image Products Announces the Release of Perfect Copier Version 2.0.
For Immediate Release: February 03, 2020 Pahoda Image Products Announces the Release of Perfect Copier Version 2.0. Denver, CO (February 03, 2020) — Pahoda Image Products has officially launched Perfect Copier Version 2.0., enhancing its dynamic quoting system with new features for an innovative sales experience. This advanced version provides owners with increased visibility into their sales teams and offers sales representatives greater efficiency throughout the process. Current clients...
Topic
Notice Regarding the Conclusion of the Partial Share Transfer of Ricoh Leasing Co., Ltd.
News Release Notice Regarding the Conclusion of the Partial Share Transfer of Ricoh Leasing Co., Ltd. TOKYO, April 23, 2020, －RICOH COMPANY, LTD. today announced that the Company concluded the partial transfer of common shares in our company's consolidated subsidiary, Ricoh Leasing Co. Ltd.(referred to as “Ricoh Leasing”) to Mizuho Leasing Company, Ltd. as announced in "Ricoh reaches agreement on a business alliance, will carry out a partial share transfer of a consolidated subsidiary, and...
Topic
Ricoh offers promos to customers
- 90 day no payment lease deferrals for new leases - Step Lease with reduced lease payments during first 6 months of lease - Renewal Extension Program with 25% current payment reduction with new orders - Refinance lease to extend lease and lower payments
Reply
Re: Lease Rates to die for!!
Originally Posted by txeagle24: I would kill for those rates. I figure it this way, for every 10K of leasing business if your rates are padded to the tune of over .0200 and you are getting the rate of .01817, you're $1,200 in the hole already when competing with someone who is not padding the rates. You can also think of it this way, lets say your selling production and the cost is $30k and the mu is 15%, that means before you even add GP the dealer or direct is already pocketing $8,100...
Reply
Re: Lease Rates to die for!!
Hello BLavey - There are many variables that can affect the rate factor (brand, model, special lease terms, etc), but I can give you a rough idea of what you may be looking at. 36 Month, FMV: .02716 - .0284 48 Month, FMV: .0222 - .0228 60 Month, FMV: .0178 - .0184 If you are a Ricoh dealer, I know that US Bank had some special rates that may be go as low as .02666 for 36 months. I'm not sure if these rates are still active. Additionally, if you are a Konica dealer, US Bank very recently had...
Reply
Re: Lease Rates to die for!!
What the hell..? Those lease rate factors are ridiculously low. Your 24 month LRF is lower than then average 60 month LRF. Aren't these low interest rates exactly what got the banks into trouble in the first place back in 2008? It's not sustainable if you want to flip those accounts again in 3.5-4 years with higher rates...
Reply
Re: Lease Rates to die for!!
It's not the low interest rates that got the economy in trouble it was the people that got it in trouble.
Reply
Re: Lease Rates to die for!!
US Bank Ricoh Promo rates are lower than these, at least in deals where the equipment being financed are Ricohs. Of course, that is because Ricoh is most likely subsidizing the rates. Most of a lease company's profits do not come from interest but from "alternative forms of revenue" that the lease generates i.e. late fees, forced insurance, evergreen clauses, exaggerated property tax, restocking fees, etc. just to name a few.
Reply
Re: Lease Rates to die for!!
Art, Your over $10k 48 month FMV is pretty good. We get .0225 - .0229
Reply
Re: Lease Rates to die for!!
Partner 1 Over 3K 36: .02787 48: .02282 60: .0187 US Bank is even lower for Ricoh and GE is also lower on Kyocera.
Reply
Re: Marlin Leasing Doing the Dirty Deed to Dealers?
I have not, but we don't use Marlin, & I don't know of any major competitors in our area that use them as one of their primary leasing partners.
Reply
Re: Marlin Leasing Doing the Dirty Deed to Dealers?
It wouldn't surprise me. I'm amazed at how some of these leasing companies will,screw their dealers. We use Great America primarily and I like the fact that they just want to be the financial arm of the transaction and leave everything else to us and the customer. The rates are a little higher but for the relationship and lack of problems I'll take it.