3 Tips when procuring office automation(Contracts)
Buying a new Copier/Pbx is sometimes a very painful process almost feel like pulling teeth, and if you lucky and your deal has been structured correctly you will only have to do it every 3 to 5 years. unfortunately this is not the case for most procurement executives as the industry is always changing and you never quite know with who you dealing with. Without in depth knowledge of the industry this can be a very costly mistake. As a recent client of mine learnt that signing a copy plan agreement is the worst possible way of procuring or making use of copiers.
So in this article im going to give you 3 tips of what to look for in your agreement and get it explained in detail as to how it works.
- Is there a annual escalation on both hardware or service, if so, at what rate ? take into account this is generally a 5 year contract.
- What is your cancellation notification period at end of contract? generally 90 days, be aware that these contracts will be extended for a minimum of a year should you not meet your the deadline, which will incur an escalation as well as unnecessary settlement should you wish to move to another supplier.
- never sign a minimum billing, you will only end up paying for prints you dont use in most cases, because they are not carried over.
I can refer you to many dealers from all brands that don't charge minimum billings.
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Managing Director at Alwayspower and At Linx
4 年I have a client now that after a 6 year contract and 3 years into that the settlement is only 128 K for a small mono copier!! It is shocking! the cost is is about 9k ..
Managing Director at Alwayspower and At Linx
4 年Hi I have been in the copier industry for a long time, rental escalation in a NO go, and while I can still stomach the escalation on a sla it warps my mind! my company has a thing going if we can’t remote it we don’t do it! There are certain functions you have to be onsite for but try to minimize them!
Headsets & Video Conferencing Distributor
5 年Thank you Dean that is excellent advise. I often tell my clients of the above points and I can't even explain how many times they find themselves in expensive rental agreements for years or paying for minimum billing they never use. Please may I add the following when renting a copier: 1) Confirm the settlement amount and always remember they add the settlement amount to your new copier when you upgrade. 2) A lighting protector is a once off charge and should never be charged on a monthly basis. 3) Always shop around, if you have decided on a device, request several quotes for the same device and compare your cost per copy charges, escalations, the price of the device and the monthly rental amount. 4) Nothing is free!