There’s no shortage of people who’ll tell you that buying a copier is the best business decision you can make. But there’s also no shortage of people who’ll tell you the exact opposite. The “buying vs. renting” debate has raged, and will continue to rage, for many years. At the end of the day, the correct answer is: choose the solution that works best for you.
In this article, we’ll take you through the different aspects of copier rental, including what rental entails, the pros and cons, and what to look for in a copier rental company. Hopefully, this will help you to decide whether copier rental is right for you or not.
Copier Rental in a Nutshell
For businesses just starting out, there’s enough office equipment to buy before even considering something as complex and expensive as an office copier. It’s a significant investment by any measure and can become a huge money sink when startup capital is limited in the first place.
Copier rental is one solution to budget constraints or shorter-term needs. A rental company will hire out a machine for an agreed short- to medium-term period. That means in return for a monthly rental fee, a business gets full use of a machine without the initial investment. Average rental costs are about $125-$150 per month.
Renting a copier provides all the benefits of the machine but with none of the responsibilities. It can’t be claimed as an asset, but there’s no need to worry about all the potential problems that come with it. At the end of the usage period, the machine is simply returned to the rental company.
Renting and Leasing
Copier rental and copier leasing are two widely different practices. What’s more, the terms are easily confused and often used interchangeably, leading to much confusion.
So, what’s the difference between them?
Rentals are for shorter periods. Most agreements won’t extend past a year, and the machine is returned once the time period is up. Leasing, on the other hand, is typically for longer periods, lasting anywhere from one to five years.
Unlike copier rental, where a machine is returned once the agreement ends, leasing comes with additional benefits and drawbacks. On the plus side, leasing companies often give a business the opportunity to buy the copier at fair market value (FMV) after the leasing period expires.
The downside comes if you terminate a lease agreement early. Unlike rental agreements, which have more flexible terms, there can be costly penalties for ending a leasing agreement before the stipulated period is over.
Finally, there are upgrades to consider. While leasing has limited options for copier upgrades, which typically take place at the end of a lease agreement, renters can usually change the model of their copier at any time.
The Pros and Cons
The global revenue from copiers and printers is set to reach 108.2 million pieces by 2029. That indicates there’s clearly no shortage of demand for a reliable copier out there. But whether the machine in your office is rented or owned is another matter.
Copier rental, just like any solution, has its pros and cons. It’s up to you to decide which factors make or break your decision to rent. Here are some of the major factors on both sides of the equation:
The Pros
- Low costs – Cash flow is important to a startup. With even basic copier models starting at about $700, it’s a lot of money to spend either at the start of a business journey, or for a machine only needed temporarily. Rental offers much cheaper initial costs, and is ideal when you only need a short-term solution.
- No maintenance costs – Copiers are expensive to run, but can be ruinous to maintain. When renting a copier, the copier rental service provider is obliged to upgrade and maintain the machine, freeing your business from any unexpected maintenance and repair expenses.
- Fewer strings attached – Copier rental agreements are less stringent than leasing agreements and are easier to cancel. Canceling after a few months seldom carries penalties. What’s more, rented copiers don’t count as assets and don’t need to be declared. For those with low credit scores, it’s also easier to rent than to buy.
- Scalability – If the needs of a business change, it’s easy to upgrade (or downgrade) a rental copier to keep up. Unlike with leasing or buying, rental companies are much more flexible in terms of rental options and providing machines according to their customers’ specific needs.
The Cons
- Long-term costs – While renting is definitely cheaper than buying for short-term requirements, the price can rack up pretty quickly over time. You’re paying for convenience after all. It’s important to think of copier rental as a temporary solution at best.
- Less control – Since a rented copier belongs to the copier rental company, you’re limited in the modifications or setting changes that you can make to the machine. This can be frustrating, especially for companies with unique printing needs.
- No option to buy – Unlike with leasing or buying, the rented copier that you’ve grown attached to will need to be returned once the rental period is up. The fact that the copier can’t be claimed for equity purposes can also act as a double-edged sword.
- Limited Supplies – A rental company may not always have the ideal copier model to meet your specific business needs. Worse still, the model you need could be rented out to another business already. With copier rental, you’re limited to what the rental company has in stock and what they’re able to give you.
Key Factors in Copier Rental Cost
A quality rental partner is a good first place to start when choosing where to get a copier rental from. After that, there are several factors that’ll affect the price of your rental machine. Your specific needs and budget will most likely be the decisive factor in your decision. But, here are some of the other major influences on the price you’ll have to pay:
- Specs – The more bells and whistles, the higher the price tag. Consider the color options, print rates, multi-functionality, and network capabilities of a copier to ensure you actually need what you’re paying for.
- Brands – Famous brands will charge a premium for their reputations. Smaller brands may be less well-known but not necessarily inferior. It helps to ask a rental company for advice in this regard.
- Insurance and other charges – Some rental companies offer insurance to guard against the unforeseen. In addition, there may be monthly print quotas and down payments included in the fine print of your copier rental agreement. Make sure you know all the costs before signing up.
- New or old – Older rental models are cheaper, but may come with more problems due to the machine’s age. This isn’t always the case, but it’s something to be aware of.
Making the Right Choice
Copier rental is definitely an excellent short term, low-commitment answer for many businesses still finding their feet. But despite how easy it is to rent a copier, it’s always best to consider the downsides of renting, and remember that rental is only financially viable as a short-term solution.
When looking for a quality copier rental, the partner you choose can be just as important as the machine. If you’re in the New York, Totowa, Cherry Hill, Edison, or Ft. Washington areas, then Docutrend is a perfect partner for you. We have over 20 years’ industry expertise to share with you to help you make the best decision possible for your business. Contact us today.