The pros and cons of buying photocopier equipment

Most modern businesses will use at least one photocopier on a regular basis and it is important for them to reflect whether they will be better off buying outright, or leasing through a contract.

Considering a large percentage of businesses actually lease their photocopier instead of purchasing them, what would be the incentive for a business to purchase one? Whether you are a small or large business this is still an important question, as the decision can impact other long-term decisions and actions.

This article intends to highlight some of the pros and cons of buying a photocopier and aims to help you make a better-informed decision, about whether buying a photocopier is right for your business, or will it suit better for you to lease instead.

Pros

Recouping costs – Considering that photocopiers depreciate over time, it may be beneficial for a business to sell their photocopier when they would like to upgrade. Providing that the photocopier is in good condition, the business may be able to sell their old photocopier before buying a newer model to recoup a percentage of their initial costs.

Taxable – Owning a photocopier can be valuable as it enables the business to own the photocopier as an asset, which then permits potential tax deductions to be made on the entire cost price of the photocopier, as opposed to a lesser deduction of tax when leasing.

Contract-free – When a business purchases a photocopier, they are not tied into any contracts with suppliers, which means less paperwork to fill out and they will not have to budget for monthly payments as you do when leasing.

Maintenance – Often when leasing a photocopier, the supplier will include a maintenance schedule within the contract. The frequency of the schedule is sometimes decided by the supplier and in some cases could be seen as slightly excessive or not applicable to certain businesses. The benefit of purchasing a photocopier is that you will be able to decide your own maintenance schedule and choose who you would like to perform the maintenance.

Convenience – Buying a photocopier can be a fairly straightforward process. In simple terms, you find the photocopier that best suits your requirements and then purchase it. However, with leasing, there are more steps to complete. Photocopier suppliers will require paperwork to be filled and this may include providing financial business information to the supplier. The benefit of purchasing a photocopier is that you will have full control of the use of the photocopier and be in charge of any upgrades or maintenance required.

Cons

Increased expenditure – More often than not, the initial purchasing of a photocopier will cost vastly more than the initial leasing of a photocopier. In some cases, the initial purchase of the photocopier can be too expensive for a business to invest in and on top of that, the business will need to take repairs and maintenance into consideration. These costs can accumulate a high expenditure that some businesses might find unmanageable. This is why leasing may be the preferred method for some businesses, as it allows for more manageable payments which are better suited for a business on a budget.

Repairs and replacement – Photocopiers are being improved on a regular basis and it may be difficult to keep up to date with the latest spec when purchasing. In addition to this, repairs and replacement parts are crucial for keeping the photocopier operating efficiently. However, the older the photocopier gets, the closer the model gets to becoming obsolete and will then become too expensive for repairs or replacement parts and sometimes the manufacture stops producing these parts. In these circumstances the business may need to purchase a newer model which can be costly.

Knowledge gap – For non-experts, selecting the best photocopier that meets the business requirements can be a tricky process. The business may need to spend time researching photocopiers to gather a better understanding of their requirements and potential features they would like to be in a photocopier. This issue arises again when deciding on upgrades. However, these issues can be minimised when leasing, as the business will be able to discuss their options with a supplier, who will have a professional opinion and approach for selecting the best photocopier for you.

Inconsistent – Some businesses have several different site locations and within these sites have multiple photocopiers present. This means each individual site will need to take note of the performance of the photocopier and ensure that equipment is purchased for the relevant make and model. Sometimes a business will have photocopiers that have different models and manufactures. This will affect consistency, as it may be difficult to track maintenance of each photocopier, purchasing refills and other equipment. This can also become slightly chaotic due to fluctuating costs. This problem can be solved through leasing, as the supplier will monitor the status of the photocopier and will install alike photocopier and equipment, to improve consistency and monitoring abilities, to ensure the business budget is not exceeded.

Want to test our knowledge and see if we are the right fit for your business? Contact us today on 0800 197 8883

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