Many businesses are moving to managed print services due to distributed overhead and other savings. If an organization is currently bound by an equipment lease, there are options.
Moving Forward From a Current Business Machine Lease
Managed print services are an important trend in the business world that allows companies of all sizes to lower their costs through distributed overhead and other benefits. However, some businesses haven’t yet transitioned to MPS because they’re currently bound by equipment leases or copy machine service contracts and so forth.
Open-Ended Lease Agreements
Re-read your current copier lease and copier service agreement. Most of these contracts will have a start and end date. If the contract lacks an end date, then it’s open-ended and you can cancel anytime. Many companies simply let leases roll over rather than renew them with new agreements. When the rollover happens, the agreement becomes open-ended and can be canceled anytime.
Most business equipment leasing and maintenance agreements include what are known as performance standards. If the provider didn’t live up to these standards, then you can cancel the agreement without penalty. For instance, if a contractor promises same-day repair of copy machines but isn’t able to arrive until the next day, this would be a failure to meet performance standards.
Buyout of the Existing Lease
Many people have been enticed by cell phone deals where the new provider is willing to pay the costs associated with an existing contract. These kinds of buyouts exist in the business world, too. Based on the size of your organization and its business machine needs, an MPS provider can estimate how profitable you’ll be to them each term. If you’re willing to commit for a long enough term, then it becomes worthwhile to them to assume that cost now in order to profit more later.
Early Termination or Cancellation
Finally, you have the right to terminate the contract early. However, if the contract has an early cancellation clause, you may be responsible for the costs outlined in it. While paying these fees isn’t ideal, it may make financial sense based on how much the business is due to save over the long-term.