There is a lot of merit to owning something. The absence of payments and interest are obviously the biggest of reasons. However, owning your multifunction office copier sometimes isn't the best financial strategy. Businesses stand to benefit in a variety of ways if structured correctly. Here is a common myth we hear all the time in our business, and points to why copier leases aren't all that bad when you consider the overall cost of doing business.




"If I multiply the copier lease payment by the number of months financed, it's cheaper to pay cash."

Not necessarily. Here's why:

1. Do you plan on keeping this equipment for less than 4 years? If so, it's usually more economical to lease based on the arithmetic quoted above.

2. Is cash on hand important to your company? Do you need to keep a credit line intact if an unexpected expense occurs? Would the credit line interest be more than a equipment lease?

3. What's your Internal Rate of Return (IRR)? Simply put, what is your "return" on things like advertising, investments, sales bonuses, inventory, etc. If your IRR is higher than the rate paid on a multifunction copier lease, keep your money and use it to produce income for your company.

4. If you're planning to get money at the bank instead of leasing, consider the true cost borrowing. Usually banks will lend at about 2% above Prime which is slightly lower than what most financiers in the imaging industry have access to. However, you may lose some additional benefits by not leasing with the vendor. For example with Xerox leases, service is usually less expensive, and you typically have more flexibility with contract upgrades and warranties. Plus, if you're planning to change equipment after 4 or 5 years, chances of getting anything for it (by selling it yourself) are slim to none.

If any of the previous points are justifiable, consider leasing your multifunction office copier next time around. Be cognizant of the specific parameters of your contract and know how things are calculated for the term of the lease. Here is a previous post on questions you should ask before you buy a copier that should also help next time you evaluate your office technologies.

Labels: copier, lease

Monthly Duty Cycle Is Confusing

The “monthly duty cycle” specification that is found on most Xerox printers, and multifunction devices can get a customer thinking down the wrong path. Simply put, it’s entirely possible that a potential buyer can interpret this number to mean something that it isn’t. For example, the Xerox Phaser 8860, a fantastic solid ink printer is advertised as having a 120,000 page per month duty cycle. Does this mean you can run this printer at that volume consistently for every month you own it? No. It simply won’t hold up for very long.


Why does Xerox “advertise” this number?

Xerox defines duty cycle as “the maximum number of pages a device could deliver in a month. This metric provides a comparison of robustness in relation to other Xerox printers and MFP’s.”

The key word here is could.

In layman's terms, your car may register 240 mph, but more than likely you’re not going to consistently travel at that speed. Duty cycle is an advertisement more than anything. Every major manufacturer unfortunately does it - not just Xerox. Just understand that duty cycle is not the end-all barometer to base your volume needs when you’re evaluating office equipment.

Fear not. There’s recommended Monthly Page Volume.

Recommended Monthly Page Volume, also known as Average Monthly Print Volume (AMPV), is what needs to be considered the most. It is defined as the “range of pages that helps customers evaluate Xerox’s product offerings based on the average number of pages customers plant to print on the device each month. Xerox recommends that the number of pages per month be within the stated range for optimum device performance...etc.”

The only issue with AMPV is finding the particulars because it’s usually buried in a White Paper somewhere. You’re best suited to contact your local Xerox Sales Representative for these details. They should be able to find this information within a few mouse clicks.

To finish our thoughts on the Xerox Phaser 8860 printer, it’s only recommended to run between 1,000 and 10,000 impressions per month. This is nonetheless a far cry from the 120,000 monthly duty cycle mark. As mentioned before, get advice and be an informed buyer - vendors and customers alike don’t like a bad sale.

Labels: AMPV, duty cycle, Phaser 8860, Xerox Sales Agent

In a perfect world, these fantastic gizmos that put marks on paper would never fail on us. However, it’s all too familiar that when we need our multifunction office equipment to perform the most, problems arise.

We get the urgent calls everyday, and thankfully with the award winning Xerox platforms we support most issues can be fixed either on the phone or within 24 hours. However, here are some quick tips to keep in mind to help you avoid potential issues:

1. Use Fresh Paper

If anyone’s heard the excuse from their copier technician “...it’s the paper” without much explanation, I can only imagine the rage one feels. However, there’s definitely some merit in the fact that paper can play an important role with equipment performance. Moisture, dust and temperature can all have negative effect on how the machine operates. Try to use paper within a week or two after opening in normal operating environments. In humid or dusty conditions, use only what you need on a daily basis.

2. Less Hands = Less Jams

People use technology differently, and when more people have access to the equipment, more problems are inevitable to occur. If your office has the luxury of a smaller group of people dedicated to using the machine, you’re much better off.

3. If There’s a Problem, Let Someone Know About It

It’s surprising how long problems go unreported. In larger workgroups, issues tend become someone else’s problem to deal with when there is an alternative method to getting documents produced. Inheriting a paper jam is never is fun; post your local Xerox service provider’s number near the machine and require someone internally to be the "go to person" when situations arise.

4. Remember It’s Still a Machine

Machines are mechanical and unfortunately they are going to break down. We pride ourselves at Hungate Business Services in selling the best product and services in the imaging industry, however things do happen. Report issues promptly and there’s a good chance you’ll be up and running within a day or less.

5. Don’t Try to Perform Maintenance Yourself

No help needed from the weekend do-it-yourselfer’s. These devices are high-tech, and very sensitive to the slightest error for many of the internal components. Xerox equipment design is intuitive enough for even the most novice of users for common functions and clearing problems. However, if something isn’t working based on what the touch screen instructs you to do, proceed no further and contact your service provider. Most vendors will charge you if you break something while attempting to do a repair (even if you have a service contract), so don’t take the chance.

6. Use Genuine OEM Xerox Parts and Supplies

Only use manufacturer recommended consumables in your office equipment. If you’re purchasing Xerox supplies, make sure you’re buying them from an Authorized Sales Agent or Dealer. If they are included in your contract, request that these components come directly from the manufacturer. Supplies in the Xerox world have gotten so advanced, that toner is even chemically grown - even the slightest micron off can compromise quality and overall reliability of the equipment.

If you have a Xerox metered or cost per copy supply contract with your local Xerox Sales Agent, you can now order your supplies via the web at the Xerox Metered Supplies page. Simply fill in your organization's specifics, as well as filling in equipment serial number(s) and meter readings. Delivery usually takes 3-5 business days depending on stock availability.

Check it out next time you need a refresh - it's an easy one-page checkout that's a real time saver.

Labels: xerox, xerox supplies

Hungate Business Services is offering a $15 Gift Card with the purchase of two of the same HP Toner Cartridges October 9th through November 15th or while supplies last. All of our discounted HP toners are eligible (dual/multi packs count as one cartridge). Please note that inkjet cartridges do not qualify with this offer.

You can choose your $15 Gift Card(s) from:

• BP or Shell Gas Stations
• Barnes & Noble
• Lowes Home Improvement
• Darden Restaurants: Bahama Breeze, Olive Garden, Red Lobster, Longhorn, The Capital Grille, Seasons 52

Qualifying orders will receive a redemption form in shipment, which includes instructions to the HP redemption website: www.rewardsofchoice.com. The form will include your unique pass-code and zip code information allowing entry into website. Once entered, you can then select a Gift Card(s) of choice. The process usually takes about 2-4 weeks.

Labels: gift card, Hewlett Packard (HP), HP Toner