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Article Directory :: Business - General Articles
Have you ever replaced your photocopying equipment before the end of it's lease agreement and had to include the settlement figure in your new agreement?
Do you want to break the endless cycle of having to replace equipment who's useful life for producing the quality and reliability of output required has expired before the end of its' finance agreement?
Is this dilemma hampering your ability to rationalise your expensive desktop colour and black print output to new cost effective multifunctional devices?
A Progressive Solution: Total Volume Rental Plan
Total Volume Rental Plan (TVRP) is an agreement that enables easier management of the copying and printing function of your business and solves the problems outlined above. What is TVRP? TVRP allows your entire printing and copying facility to be managed through one agreement.
The agreement is set-up in such a way that it can end when the machine has achieved its optimum volume rather than the chronological term of the finance agreement. In other words match the agreement to your changing requirements not to a long inflexible lease term!
How does it work?
Your vendor will agree with you the estimated minimum number of prints/copies you will typically produce on a quarterly basis. This figure is then used calculate a cost per print including all equipment and running costs. Any excess copies produced at the end of a quarter have the effect of reducing the time left on the agreement. This allows you to match your equipment life to the demands placed upon it, and you now have an agreement which can end earlier than the term over-which the agreement was set.
What are the benefits?
Photocopiers and printers are designed to produce a certain volume of prints over their commercial lifetime, a TVRP allows a finance agreement to end when the machine has achieved that volume, thereby preventing a situation where a machine that is effectively worn-out has a number of months or years to run on a leasing agreement. It is a well known fact that most leasing agreements involving copying and printing equipment are upgraded before the term of the finance agreement ends (largely because volumes increase beyond levels anticipated at the outset). Such upgrades have the additional cost of re-financing the settlement of an original leasing agreement, because TVRP can be based on print volume rather than time, and the agreement can end when a certain volume of prints has been achieved, the costs involved in settling leasing agreements can be reduced or eliminated. Additionally this facility removes the need for capital outlay or purchase budgets as this system operates on a matched revenue to usage, particularly useful for departmental recharging. This facility allows for easy cost effective replacement of equipment as the original machine nears the end of its useful life.
Frequently Asked Questions
Q: What happens if my print volumes suddenly and consistently fall below or above that agreed?
A: The terms and conditions of a TVRP agreement allow regular reviews of print volumes and any correction required can be easily accommodated.
Q: What happens if for some reason I don't achieve my agreed volume by the end of the term of hire?
A: The contract will enable you to keep the equipment for a maximum of one year after the end of the minimum period, thereby allowing you the time required to complete the number of copies included within the original contract.
Q: Will my copy costs increase during the term of the agreement?
A: Because TVRP includes the provision of service, some increase in cost during the term of a contract might be required. However any such change is limited to a maximum increase of 5% per annum in your cost per copy.
Jimi St. Pierre writes for several Office Equipment suppliers in the UK, including office systems supplier Principal Corporation. The Principal Corporation trades under the slogan "Delivering Genuine Business Benefits" and their range of office equipment, software and document management services can be found at => http://www.principalcorp.co.uk/index.php
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