Tagged With "Doccuments"

Step Leases. A previous sales rep signed a 60 months term when a new sales rep comes in and upgrades the customer to a newer copier at a lower cost including a big free copy block at 36 months. The sales rep tells the customer your costs will never increase as long as you renew every 36 months and you will keep getting newer technology. Sounds too good to be true but many buyers fall for it as they see the now benefit and not the later obligation. Of course, the Balance of Payments is rolled...

2 things regarding the evergreen clause: - If there is no evergreen clause, you would not get close to the residual you do get with it in the T's & C's. All of the residual is behavorial (evergreen) based....there's no actual equipment value in the residual.... I would explain to the lessee that their payment would've been much higher without the clause and that all in 60 month payments (without the clause) would be ~= to 66 months with a better residual (with the clause). - Do you not...

WF, your comments are from a lease company's perspective. Nothing wrong with that but you wouldn't haver asked the questions you did if you were looking from a sales reps perspective. Sales reps don't get paid on residuals or evergreen sharing. And the 63 month term is just a poor sales reps way of offering a lower payment when he has nothing else to sell.

One major leasing company now does a 12-month evergreen but its month to month for the original vendor and the original vendor can let the customer out of it if they complain.

if your company has evergreen sharing - you as the sales rep are not compensated if the lessee goes into evergreens?

That’s correct most reps do not get compensated with Evergreen clause. I know I don’t

well I know some leasing companies that are starting to comp their reps on residual realization, not just volume... so maybe it can start getting passed on. (on IT collateral, not office imaging yet)

We do revenue share and no, salesreps get no piece of that. I would be real surprised if any rep does, especially if the evergreen is mth-to-mth. First of all, it wouldn't amount to much and secondly, companies are not going to want to reward a rep financially for not getting a new deal done.

In the last few days I've seen some horrible contracts/agreements/leases that clients have signed for their copiers. My first thought was to blame the leasing companies for these lame leases, but it's not the leasing companies fault. In fact it's the fault of the dealer because the dealer has the ability to structure many of the t's and c's of the lease. The Roll Over aka Evergreen Clause In one case the lease has a roll over clause like most leases do, however this lease has a roll over of...