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4 replies

Leasing MNS Hardware VS Copiers?

SC Stefan ChristensenElite P4P'er

I posted this to LinkedIn and discussed with some people already, but I would love to get more perspective on a trend I see. I work with copier dealers that successfully lease the majority of their sales, but on the MNS side most customers are paying cash.

1. Why did customers first start leasing copiers rather than cash or traditional financing? How did it come about that 90% of all sales in the BTA channel are leased?

2. Where is the disconnect for MNS/MIT hardware? Is it just how it's sold, or are customers viewing those financial decisions differently?

Any insight would be greatly appreciated!


Sincerely,

Stefan

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T TMLMaven VIP

Not being specifically in the MNS/MIT side I can only answer what I know from having good friends and some networking references in that space.  I still hear an awful lot about leasing in the MNS/MIT space as it helps keep the technology current.  Several of my larger clients run their copier leases as 36 month FMV to mirror their tech leases.  They see the value in the tech recycle and are moving some of their stuff to the cloud so they need to lease less hardware.  We've seen a good split on copiers here in central PA on leasing vs outright purchase.  Some folks amortize over 5-7 years and replace, others purchase outright, run until it dies and then complain about the cost of a new one when they eventually have to outlay the capital (and not choose leasing again). 

I think the overall value, as we all could attest, is that in leasing you can pound the life out of something or really work it hard and then refresh to the latest and greatest.  not sure if this helps or not though.  Have a great day!

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