Is your small business in the market for a new printer? If so, you may be wondering whether you should buy the machine outright, or if it’s a better business decision to lease your printer.
That’s a common question we get here at OT Group, and there’s no right answer. The answer depends entirely on the needs, budget, and unique situation of your business. What’s right for one business won’t necessarily be right for your business.
There are pros and cons to both. In this blog, we take a look at the difference between buying and leasing a printer, as well as the advantages and disadvantages of a printer lease for your small business.
Buying Vs. Leasing: What’s the difference?
When you purchase a printer you either pay in full or finance it. Once you have paid, the print immediately becomes your company’s personal property. You’ll potentially have to pay taxes, delivery fees, installation costs as well as any future maintenance or support that you need for the machine.
Leasing is different, as you won’t be required to have all of the cash up front. Instead, you will sign a lease agreement where you pay a certain amount each month for a specific period of time. In most cases, this will likely be a “managed service” agreement rather than just an equipment lease, meaning you will receive regular maintenance, repairs, ink or toner replacement, software upgrades and paper supply.
How much is it to buy a printer for your small business?
There are a number of factors that impact the cost of an office printer in Ontario, including the type of printer (whether it is an inkjet or laser printer), if it is colour or monochrome, if it’s new or refurbished, the type of toner it uses, it’s reliability, print quality, the type of paper used and the printer’s page yield.
In general, basic office printers can start around $1,000, multifunction printers can be anywhere from $2,000 to $16,000 and high performance commercial printers could be priced anywhere from $40,000 to more than $100,000.
While high performance printers are incredibly expensive, generally speaking, printers are significantly more affordable than they’ve ever been before. This lower barrier to entry has made it easier for small businesses to own their equipment with a smaller initial outlay.
While this is certainly beneficial for some organizations, others may still be either unable to afford their own printer (if they have high printing demands or require sophisticated equipment) or simply prefer the benefits that come with leasing equipment.
How leasing a printer can save your business money
We know all too well how office expenses can quickly build up for small and medium-sized organizations. Leasing can offset the burden associated with upfront expenses, making it a smart choice for your business.
Here are just some of the key ways small businesses can save money when they lease a printer.
- Lower upfront cost
When you lease a printer, the cost of the machine is spread out over monthly installments rather than one big lump sum. While the cost will be slightly more over the long-term, your business will be able to save a large amount of money in upfront costs. That frees up money that you can use to improve other areas of your business.
- Service and support on your machine
When you purchase a printer, maintenance is in the hands of your business. When you lease, however, your printer will come with a maintenance and repair contract. This takes stress away from your business, and means you’ll never have to worry about sourcing printing repairs. Your provider will completely cover maintenance and support of your machine.
- Always have up-to-date equipment
The shelf-life of technology is notoriously short. Leasing allows you to avoid running your business with out-of-date technology. The business that is leasing you the equipment will be the ones who have to update their technology, while your business can seamlessly refresh its equipment every few years without having to purchase anything outright.
What are the disadvantages of leasing a printer?
While there are a number of benefits to leasing a printer, there are also some downsides. Here are a few of the top cons of leasing your small business printer:
- Lack of equity
When you purchase a printer, it counts as a company asset that adds value to your business. For businesses trying to build equity for their company, leasing will not help. With leasing, because your business didn’t purchase the printer, you don’t own it.
- You may have usage limitations
In some cases, printer leases will include agreements which dictate how often you use the printer, the number of pages you print and who has access to the printer. You may even be required to use their choice of paper or ink. Since you don’t own the machine, breaking these limitations could result in costly fines.
- It’s more expensive in the long run
While leasing a printer saves your business upfront, it’s more expensive in the long term. Over the entire term of the lease contract, your company will have paid more than the actual value of the printer as you’ll have to pay interest.
Which option is best for your business?
Since all companies have different requirements, budgets and objectives, there’s no quick answer to tell you if leasing is the right choice for your business. That’s not even mentioning the various types of lease agreements and payment plans for ownership, which will impact which decision would work best for your company.
Are you looking for further help to decide whether your small business should purchase or lease a printer? Get in touch with OT Group today. Our team of office technology experts would love to help answer your questions.
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