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  1. #1
    Field Supervisor 500+ Posts
    Wrapping service into lease

    mansart's Avatar
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    Wrapping service into lease

    Just curious…what percent of your leases include serve?

    Does your dealership tend to wrap service into lease? Or do you prefer to keep service and lease separate?


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  2. #2
    Service Manager 5,000+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    95% of my leases have a separate service contract.

    Some of my leases may include a "free" copy block which is built into the cost of the lease.

    Most leases include the cost of the initial toner built into the lease and free copies are given but not usually more than 20,000 black and 5,000 colour. It is fairly easy to give away lots of black because black toner and developer is relatively cheap. 20,000 black at $0.010 is only $200.00 built into a lease but it looks good to the customer. It might be a whole years worth at 3,000 pages per month.

    No leases are cpc machine included without a guaranteed monthly minimum.

    No leases are written under the unlimited free prints plan, which is essentially a prepaid copy block with a lot of conditions.

    A lot depends upon the competitive situation and if you are trying to break into a new account.
    Last edited by SalesServiceGuy; 11-22-2022 at 03:21 AM.

  3. #3
    Master Of The Obvious 10,000+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    There are far too many ways for this to go wrong. Don't combine machine lease with service. =^..^=
    If you'd like a serious answer to your request:
    1) demonstrate that you've read the manual
    2) demonstrate that you made some attempt to fix it.
    3) if you're going to ask about jams include the jam code.
    4) if you're going to ask about an error code include the error code.
    5) You are the person onsite. Only you can make observations.

    blackcat: Master Of The Obvious =^..^=

  4. #4
    Service Manager 5,000+ Posts
    Wrapping service into lease

    SalesServiceGuy's Avatar
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    Re: Wrapping service into lease

    A lot of dealers have gone out of business because they built an entire five years worth of cpc revenue into a lease. They rec'd all of that what should be monthly recurring revenue revenue in the first month and now are forced to chase new sales to keep revenue flowing into the business.

  5. #5
    Service Manager 10,000+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    In the end, you can always make the math work whether service is included in the lease or not. I'd say 95% of my leases include service. That way I get all of my money up front and the customer only pays a monthly charge for overages.
    Growth is found only in adversity.

  6. #6
    Service Manager 10,000+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    Quote Originally Posted by SalesServiceGuy View Post
    A lot of dealers have gone out of business because they built an entire five years worth of cpc revenue into a lease. They rec'd all of that what should be monthly recurring revenue revenue in the first month and now are forced to chase new sales to keep revenue flowing into the business.

    The only way this is relevant is if the dealer goes and blows the money that he was paid upfront. Otherwise, it's irrelevant. This isn't that complicated.
    Growth is found only in adversity.

  7. #7
    Service Manager 10,000+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    Just a little side note. For those that are in sales, you'll know what I'm talking about. One added benefit to including service in the lease is that it's difficult for the competition to discern the true cost-per-copy that you're charging. Thus it's harder for them to do a side-by-side comparison.

    When I go on a sales call, one of the first things I do is ask them to pull out their service contract and I'd say about 90% pull it right out.
    Growth is found only in adversity.

  8. #8
    Geek Extraordinaire 2,500+ Posts KenB's Avatar
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    Re: Wrapping service into lease

    Quote Originally Posted by blackcat4866 View Post
    There are far too many ways for this to go wrong. Don't combine machine lease with service. =^..^=
    The absolute worst program ever was including service with toner.

    It was known as the “Toner Kit” program. It just plain sucked, for countless reasons.

    I don’t know if this is practiced any more or not.
    “I think you should treat good friends like a fine wine. That’s why I keep mine locked up in the basement.” - Tim Hawkins

  9. #9
    Service Manager 10,000+ Posts
    Wrapping service into lease

    BillyCarpenter's Avatar
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    Re: Wrapping service into lease

    Quote Originally Posted by KenB View Post
    The absolute worst program ever was including service with toner.

    It was known as the “Toner Kit” program. It just plain sucked, for countless reasons.

    I don’t know if this is practiced any more or not.

    You're gonna have to explain the downfall to me.

    The bottom line is I'm charging the customer the same price whether it's monthly, yearly, or for the lifetime of the lease. And a LOT of big copier companies are doing it.
    Growth is found only in adversity.

  10. #10
    Senior Tech 250+ Posts
    Wrapping service into lease

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    Re: Wrapping service into lease

    For us, leasing is totally different from service.

    You can lease a device for much longer than you can get service and vice versa if you own it.
    They are two different "products" for us. We even have different "plans" of leasing and service

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