4 Ways to Negotiate a Copier Rental and Save Money

Melanie, managing director at a New York City law firm, attended a training workshop on equipment lease negotiation at the Association of Legal Administrators (ALA) 2010 Annual Conference in Boston. The session, titled Equipment Leasing: The Financial Implications in the Fine Print, provided attendees with the clear history of equipment leasing and how to negotiate better leases.

Melanie shared her success story. She used four of the leasing and negotiation tips she learned in the workshop and saved her law firm over $14,436 on a single copier lease.

He began by asking the copy provider questions. Why were you offering a 63 month lease term? Why is the payment $1,280 if this copier is not equipped with the bells and whistles of the company’s other digital copiers?

Melanie said that while she was in the shop she thought, “I can’t wait to go back to the office and read the copier lease. I bet there are problems.”

4 ways to negotiate an equipment lease savings:

1. Automatic renewal: Melanie negotiated a six-month automatic renewal down to a month-to-month renewal provision. This gives your business more flexibility at the end of the lease and avoids a costly extended term.

2. Payment amount: Melanie thought the payment was too high for such a simple copier and negotiated it down to $879 per month. The savings was $401 per month.

3. Maintenance: He also negotiated full maintenance on the monthly payment of $879. Maintenance was extra on some of the company’s photocopiers.

4. Rent only what you need: The supplier had recommended three copiers with a speed of 60 to 90 pages per minute. Melanie knew that the electrical capacity for the proposed photocopier area would not support the 90-page machine. She also knew that a 60-page unit would easily handle the volume of the planned project. She also avoided the cost of additional electrical wiring.

This is a smart law firm manager! He found and negotiated the issues in the lease, resulting in a savings of over $14,436 in the cost of the lease. His company benefited from a reduced lease expense plus a 700% ROI by sending Melanie to the conference workshop, all in just two weeks!