State Contract

[Raymondd]

Just curious,
Kyocera is making us buy back all state contract rentals. Is this the norm across the country? Our wholesale rep wants us to purchase new eguipment, but we have a warehouse full of used stuff.

I can't believe everone has to do this...

Your feed back is greatly appreciated!!!

Ray

[LNorris]

this may have changed. but what i was told, the rentals are honored up to sept. if the contract was started prior to that, then the rental stays in effect. after that date, no more rentals. but i'm just a tech

[10871087]

Every state contract is a little different but the requirement to "buy them back" off rental if the customer cancels out early is pretty normal. Generally the contracts limit the number of machines the customer can cancel and what penalties they might have to pay to do it. The price you have to pay for the off-rental equipment is something that your dealership agreed to in advance when the manufacturer sent you the deal or when you agreed to service the state contract for the manufacturer. Every contract has a different price but they are almost always a good deal. My guess is that you probably paid pennies on the dollar for the equipment and after throwing in a PM kit and a few hours labor you will have yourself a very good used machine.

[Kopyrtek]

Never had that problem with Ricoh in Louisiana.If we lost the contract we had the option of buying the machine if the price was right.Otherwise we picked up and stored it till they got ready to come get it.But we never were forced to buy anything from them off state contract.
May be different for Kyocera but i wouldnt take their word for it.Call around the state and see what everybody else is doing.

[fixthecopier]

Never had that problem with Ricoh in Louisiana.If we lost the contract we had the option of buying the machine if the price was right.Otherwise we picked up and stored it till they got ready to come get it.But we never were forced to buy anything from them off state contract.
May be different for Kyocera but i wouldnt take their word for it.Call around the state and see what everybody else is doing.

As far as I know , Konica works the same way. We can buy it if we want to, but they take it back if we do not want it. The reverse happened to us. After a 3 year contract was into its 4th year, and they were trying to replace it with a new contract, Konica bailed and sold my boss all 650 machines for next to nothing. They stayed where they were at collecting rent for two and a half more years. Can you say "truckload of money"?

[Raymondd]

Maybe I didn't make myself clear... We only have to buy the eguipment we rent. Not if they purchase from another vender. These machines could be 2 wks old and we have to buy them. Not @ state contract pricing but fair market value.

This is great, but color is going to be on the new state contract in July. I'll have a warehouse full of 3035/4035/5035/6030/8030's possibly 3050/4050/5050's also

(WE DO A LOT OF STATE CONTRACT)

Thanks for the input!!!!

[Raymondd]

Kopytrek,
Lanier isn't on state... I WISH IT WAS!!!!

[Kopyrtek]

The new contract is coming out in July and i dont think that there will be much from Lanier/Ricoh on it.Somehow Sharp has gotten into it pretty heavy and i from what i hear Canon will have some on it too.
We used to do ALOT of state stuff but it has tapered off to almost nothing.It has gotten the sales dept. moving more these days.Moving more color than ever too.

[fixthecopier]

Maybe I didn't make myself clear... We only have to buy the eguipment we rent. Not if they purchase from another vender. These machines could be 2 wks old and we have to buy them. Not @ state contract pricing but fair market value.

This is great, but color is going to be on the new state contract in July. I'll have a warehouse full of 3035/4035/5035/6030/8030's possibly 3050/4050/5050's also

(WE DO A LOT OF STATE CONTRACT)

Thanks for the input!!!!

I understood what you said. If Konica rents it, leases it or lets someone else just look at it, they own it and eat it if it comes back early. We don't buy shit unless they are giving it away.

[Kopyrtek]

LOL.Well said fixthecopier.When we got back what Ricoh wanted for the copiers we would rebid and if they didnt like it then it went back.Otherwise we bought it,refurbed it and made a killing on resale.For now those days are gone for us.Ricoh seems to feel like they have enough outlets for their equipment now and so they dont bid state contracts like they use to.

[fixthecopier]

The bad thing that the corporate big wheels are doing is making large deals in areas that they have dealers in, and keeping the service in house. I know several that have started doing it.