Finally was able to get a meeting with one of my prospects to replace and older MFP. Initially they wanted a 75ppm black device and I was told the device was producing 35K per month. I had a quote ready on the initial meeting but everything changed. The volume was not 35K per month but 35K per year, the monthly "rental" was not a rental but a 60 month lease with many months left.
Most might have backed out, however I asked for a copy of the lease and the maintenance agreement and or the invoice. Here's what I found.
1) the lease is a cost per page lease, 36K built in annually with overages
2) There is an auto escalator @20% per year on the lease and the overage cost per page
3) Each year there is a Processing Fee (cost to ship toner) for $200.00 that is also an annual escalator.
I need to do the math and the projection for how much the client will pay until the end of the lease to see if we can help.
I also understand that most clients do not read what they sign.
Why is it that almost every agreement I present it gets read from head to toe?
When I informed the client they were let's say not to happy with that vendor.
Anyone else seen agreements like this?