Don’t Sign Based on the Monthly Payment Alone

A low monthly payment can make a printer or photocopier quote look attractive.

It is also one of the quickest ways to compare two proposals—but it is rarely enough information on which to base a decision.

The monthly figure may relate only to the equipment finance. It may not include servicing, page charges, software, installation, additional accessories or the costs associated with ending the agreement.

A suitable quote should therefore be judged on the whole proposal, not just the most prominent number on the first page.

Start by asking what the monthly payment covers

The first question should be simple:

What exactly is included in this monthly payment?

It could cover:

• the printer or photocopier;
• additional paper trays or finishing equipment;
• print-management software;
• installation;
• maintenance;
• technical support;
• toner or other consumables.

Alternatively, some of those items may be covered by a separate service agreement or charged according to usage.

Ask the supplier to separate every element of the proposal in writing.

Calculate the scheduled equipment payments

A monthly figure becomes more meaningful when it is multiplied by the full contract term.

Use this basic calculation:

Monthly equipment payment × number of monthly payments

For example, do not compare a payment over three years directly with a slightly lower payment over five years. The lower monthly amount may simply be spread across more payments.

Confirm:

• the number of payments;
• the date of the first payment;
• the contract end date;
• whether there is an initial or advance payment;
• whether any final payment applies;
• whether the figures include or exclude VAT.

Compare every quote on the same basis. Either compare all figures excluding VAT or all figures including VAT, rather than mixing the two.

Check whether there are two agreements

Printer and photocopier arrangements can involve more than one contract.

There may be:

1. an equipment finance or rental agreement; and
2. a separate service and maintenance agreement.

Those agreements might have different:

• suppliers;
• start dates;
• end dates;
• notice periods;
• payment arrangements;
• cancellation conditions.

Do not assume that ending one agreement automatically ends the other.

Ask for a copy of every document that forms part of the arrangement. Read them together before signing.

Add the service charges

The equipment payment may remain the same each month while the service cost varies according to usage.

A service agreement may include separate charges for:

• mono pages;
• colour pages;
• scanning or software services;
• maintenance;
• replacement parts;
• engineer visits;
• consumable delivery.

Ask the supplier to state clearly what is included and what remains chargeable.

Important questions include:

• Is toner included?
• Are parts and labour included?
• Are drums or other replacement components included?
• Are call-out charges included?
• Is there a minimum monthly or quarterly charge?
• Are unused page allowances carried forward?
• Can the page rates increase?
• How and when would an increase be calculated?

Do not rely on phrases such as “fully maintained” without a written definition.