Tagged With "Mobile Payments Solution"
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Re: Post-Virus We Must Defeat The Zombie Companies!
SalesServiceGuy, I would suggest that a payment strategy is not something I see valuable at all. Customers need help deferring payments on what they already own. In all do respect. A payment strategy is not helpful to end user strictly based on selling a new MFP. The Imaging Channel's resellers who only sell print equipment are going to find themselves in serious trouble. Customers don't need to upgrade their all already oversold A3 to another one. Dealers should credit back the unused...
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Re: Post-Virus We Must Defeat The Zombie Companies!
We generally do not build in prepaid copy/ print blocks into our leases. We do give away free copy prints up front but only intended as a short term bonus. We do normally charge a $25.00 minimum monthly maintenance fee but have waived that until the economy rebuilds momentum. I am in Canada, lease vendors are currently offering 90 day payment deferrals added back on at the end of term for those customers who request them. Leases expire every month and customers are happy with the equipment...
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Re: Kyocera 6500i Mobile Print Question
Yes. Kyocera Mobile Print is available with all Kyocera printers and mfps. This is a free app on google play and lstore or Itunes depending on if it is a droid or apple device that you are using. This is an onsite solution that uses your wireless network. 100% free is the key for this PRINT/SCAN app.
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Re: When is Net New Business not Net New Business?
In my opinion, Net New is any revenue stream you did not previously have. Take over service of a competitor's equipment = Net New. Replace that machine purchased from a competitor with one of your own = Net New. Take over management of their print fleet or IT infrastructure = Net New. Replace those printers or computers, Net New. Time comes to renew those contracts at a lower or identical service payment= Upgrade. But, if their monthly payment increases, the difference between the old...
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Re: Sharp bond risk jumps as losses over 4½ years top $10 billion
WOW! Some take ways from the article above: Sharp does not have core business that it can look to in the future 510 billion syndicated loan payment due March of 2016. That's almost 4.2 billion US dollars! Ouch! "The chances of banks calling the 103-year-old company’s loans are therefore low", seems to me like there are more cuts to come, more business units to sell. Banks accepted shares in the company earlier this year after it defaulted on debt payments
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Re: Leasing, Insurance, Padded Rates, Buy Out Price
If you sell at or above MSRP due to significant GP or because a buyout was involved, I would quote the Stream of Payments of the hardware + the buyout, excluding the portion of the monthly payment attributable to Service/Supplies in the case of a bundled lease/service agreement.
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Re: Is This the Beginning of the End for the Padding of Lease Rates?
Hello Art and the rest of the P4P members - Our industry association (ELFA), along with several independent law firms that represent many of our industry members are reviewing this legislation to determine the actual effects it will have on the industry as a whole and to provide guidance so that our members will be in compliance with the legislation. What we know at this point is that is you are involved in offering financing to businesses in California, you will be subject to this...
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Re: Personal Property Tax
Here’s a problem we run into in Maryland: The state does not charge personal property tax, but some (but not all) counties and even municipalities, do. Obviously, each county/municipality has its own tax rates. We use GreatAmerica Leasing and they offered us “Property Tax Included” rates for the state of MD, but the rates were actually very high considering some of our clients are located in areas where PPtax would not have been charged anyway (at least at the lease’s initiation…and of...
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Re: Charity Suggestions
Here's one more with an interesting angle. Unfortunately, they are only focused on one state currently but I imagine they will grow over time. http://www.smallcanbebig.org/ What they do: "We work closely with case managers to find families who can truly benefit from a one-time charitable donation. Hardworking members of the community who find themselves in a difficult position: one step away from homelessness, but more importantly, one urgent payment away from getting back on their feet."...
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Thanks Montecore, That makes sense from a business standpoint. I'm still having a hard time with the math though. If you are trying to figure out the effective purchase price, but only know the monthly lease payment, # months, and lease rate - do you have any ways to figure out the purchase price? 0.0302 percent of $6,200 is $198 so that only adds up to $6,339. But if you subtract $6,537 by $6,339 then you get $198 again. Suggesting that the purchase price is roughly 2 times the total lease...
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
If Montecore's explanation didn't cover it for you, then there must be some confusion what the question is. The monthly payment divided by the rate factor is the original funding amount. You'll notice there is no multiplication in this equation so if there is in yours, then your goal must be something different than determining the original purchase price. If you are trying to replace a unit by providing something for the same monthly payment, Montecore's equation tells you what your sales...
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
The rate factor actual means $30.02 per thousand dollars so you could do it this way 6.2 x 30.20 = monthly payment.
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
You're getting good answers, but sometimes the third of fourth approach to answering the question helps. Not to imply that the previous answers are incorrect or incomplete. 1. "Lease Rate" is a convenience, given to you so that you can multiply your selling price by a number and end up with a payment acceptable to the lessor. 2. The "Short answer" from your leasing company is "We'll do that deal for 36 months at 0.0302". 3. The "Long answer" which they will seldom give you is: - We believe...
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Thanks Sam for that nice viewpoint. By the way I really enjoyed looking at your website...there was alot of eye opening info there....thanks! GIntel: Let me give you another example that starts to get tricky when you have a buyout to consider. Here is the formula: (Machine Cost + Buyout + Profit) X rate factor = total monthly payment that should be (but does not need to be) less than CURRENT monthly payment for similar equipment. Define similar equipment? That means if they have a 20ppm unit...
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Re: Does your Copier Service Contract still reflect 1970's Analog Copiers?
Over my 15 years as a Sales Manager to 23+ independent dealers, I have seen many situations where dealers simply has far too simplistic service contracts that had not been updated ever. They mostly involve billable Pro Services, unstable Power Supply, two competitive vendors trying to flip each other's Service Contracts and Fuel Surcharges. (I have a large geographic territory with lots of driving.) I once sold two connected copiers to a law firm. They decided to upgrade from Novell 5.0 to...
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Re: Are Step Leases ethical business practise?
Geesh, almost sounds like a 3-5 program. I've done step leases here in the states, and on the ones I've done the leasing company makes us clearly state to the customer level of payment progression is and the lessee even has to sign off on it.
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Re: Are Step Leases ethical business practise?
Depending on the Lease vendor, they may provide cleverly designed Lease documents, with two payments streams on the document. The bad copier sales person fills in the agreed Payment #1 amount with the customer and leaves the Payment #2 line blank. The customer does not even see Payment #2 because it is blank. The customner signs the lease. Back at the office, this same sales person fills in Payment #2 with the Step Lease amount, and submits it to the Leasing company. Working with a less than...
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Re: KM Promo
This is just another marketing sales tool. What there are not showing is the buyout at the lease end. It is always a FMV. KM is using there own leasing arm. If you use a lease factor of .0278 this will show you a 0% interest. We have in state government accounts, what is call a deferred payment lease. This is the state price divided by 36 months. 0 interest, 0 down, 0 buyout at the lease end. But the sell price is fixed.
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Re: Global Image Charge Wording
The only thing I thought was strange here is "the minimum monthly payments are due whether or not you are invoiced". I wonder if I get a late charge for not paying the payment they forgot to bill me for?
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Re: Global Image Charge Wording
Our agreement says the same thing. Otherwise, no one who can utter the phrase "I never got the bill" ever has to make a payment, or we must send all invoices certified at extra expense. At a MINIMUM, you owe $311.15 EVERY MONTH. Pay it EVERY MONTH, whether you get an invoice or not.
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Re: Q. How does your company handle networking charges?
1st 90 days, all inclusive, with no time limit on hours required to get the customer to say they are happy. Thereafter, billable at $95.00 per hour onsite. Dealer, Canada
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Re: Copier Compensation Plans
This was emailed to me from a P4P'er who wishes to remain anonymous. Art, This past April I had the opportunity to leave the industry but I have kept an eye on it since then. This topic definitely perked my interest because I feel like I was both the beneficiary and victim of a Gross Profit Comp Plan at my last gig. I have been on both sides of this topic, Revenue & GP plans, and I never made more than $51K in a given year and yet I was always 100% of plan. My final year under this GP...
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Re: Booking Deals w/buy-out of existing leases
Good thought....but that would never happen. Most of the time in a stream of payment situation I take the number of months left and subtract 1 or 2 depending on the situation then I use that to base the buyout. That will knock down the buyout...especially when they are paying $300-$400 a month. This will make a big difference when figuring the lease. That can actually win the deal. The big wigs do not believe in the stream of payments and prefer to wait until the lease is up.....guess what...
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Re: Got A Situation! What would ou do?
First what was the terms of the first lease? What was the payment? How many months left? When you leased the used Toshiba did you check new or used on the lease? Fisher is right take care of the customer and they will take care of you. Yo need to build that trust and respect back up because right now the customer thinks he got a lemon and you do not care. If he believes that you need to act fast otherwise he will shop you and that will be the end of that customer. Honesty is always the best...
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Re: Booking Deals w/buy-out of existing leases
Just an update on this, after three months of fighting with everbank they are going to finally send the customer the payment they owe. It was like pulling teeth, but we did the right thing. Art
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Re: new C4502/5502
The attachment should answer both questions...key points and what has been launched.
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Re: 0% Copier Financing
A lot of confusion around this topic. The leasing companies have a beat-down coming if they continue to falsely promote their FMV promo rates as "0% leases". Example, a recent manufacturer promo offered "0% FMV Lease!" for 36 months. But the lease rate for a 36 month deal was .027777. On a $10,000 machine, the payment was $277.77. The sum of 36 payments, $9,999.72 ($10,000). Problem? The machine still belongs to the lessor. Assuming that the residual value was 15% ($1,500), plug the...
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Re: 0% Copier Financing
0% Interest financing is a popular financing tool across the board - you see it in the auto industry, furniture, IT (such as your apple example). It has never been a big seller in the Office Equipment industry business due to the business model that the dealers/manufacturers sell with. Many dealers are selling FMV leases (we like the upgrades)and not highlighting to the customer the actual cash purchase price of the equipment. 0% works best when a customer see's a purchase price (let's say...
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Re: 0% Copier Financing
Talking to several SMB business owners the objection to leasing is that they perceive the interest rate to be 15-20%. When we tell them the actual rate is around 7% because of low current interest rates, the objections seem to fall away. I appreciate making the differnce between 0% Financing and 0% leasing. I actually want to promote 0% Financing. I do think it might catch a buyer's attention in multiple competitive quotes. You are right in the copier business we are more so trying to sell...
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Re: 0% Copier Financing
All of this is fine and good as an intellectual exercise but in my 30+ years I have never answered the question of interest rate. I have been asked for it a lot but unless you have a guaranteed FMV to te customer, you can't calculate the actual Interest rate and evn then you should probably calculate in the forced insurance, interim rent, and a 3-4 evergreen payments as well. Besides, unless they plan on exercising the purchase option, the interest rate doesn't matter and if they do plan on...
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Re: 0% Copier Financing
Absolutely and 100% correct, word for word!!! Rental car is a much better example than my $100,000 house. As you can imagine, this topic is a pet peeve of mine!!!
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Re: Wells Fargo Lease reduces Monthly Lease Cost!
Yes, this is what happens with WF when the lease renews for 1 year. I forgot the percent, I think it was 75-80% of the original lease. Read the WF lease and it will tell you the percent. I had a customer that was paying $800 per month with WF. Missed the letter of intent by 1 day the lease renewed for 1 year. The IT and Director was fed up with WF for many reasons. I explained that it was their fault the letter was not sent in. and they rolled 12 x 1 yr new WF renewal into my lease payment.
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Re: Wells Fargo Lease reduces Monthly Lease Cost!
I knew about the rollover but not the deduction in the lease payment. I'll have to go back at look at their lease again, I did not see the percentage of reduction the first time.
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Re: Wells Fargo Lease reduces Monthly Lease Cost!
Here is a sample version of a Wells Fargo lease agreement. This agreement shows the renewal payment term is 90% of the original payment amount. It should also be noted that there is notice clause from between 60-120 days and a restocking fee of $250.00.
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Re: Wells Fargo Lease reduces Monthly Lease Cost!
Keith: Thanx for this, my customer is under an older Wells Fargo lease and there is nothing in the contract for a reduced payment and a restocking fee. Hopefully this holds true for the restocking fee! This is the same wells fargo that will try and sell your customers the hardware when then get a Letter of Intent, not only will they sell it to the customer they will also provide 12 months of payments and what they claim zero percent financing. I've seen enough of wells fargo to only use them...
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Re: I have a buyer in South America
Gentlemen, Please proceed with caution here. This reeks of a scam that my previous dealership was burned by. Credit card order is placed for an overseas shipment; Payment is processed (to a stolen card number); Once product has shipped, stolen card number is discovered; dealership has been burned. If it sounds too good to be true; it probably is. Good luck.
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Re: I have a buyer in South America
Just read this post and wanted to add my comments. I ship a lot of product outside the USA and there are 2 important points that will protect you: 1. Ship all products using INCO Terms EXW your location. This means the buyer is responsible for all shipping, duty & taxes once the product leaves your possession. 2. Maintain a wire account with a minimum amount of money in it. Have the buyer wire the money to this account and as soon as the funds hit your account transfer the money to your...
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Re: Konica Minolta Sales Up !
Toshiba Tec sales down 3% but Net Profit up 19% and dividend payment up.
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Re: Padded Lease Rates
Yoda, thanx so, considering that the sale is 20,000, the sales persom uses .0204 and the payment is $408 to the customer. The money funded from the leasing company to the dealership is $20,833 right?
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Re: Padded Lease Rates
If and only if you process the entire billing packet you may have a point. If you do the job of a Sales coordinator (Check the deal and paperwork for completeness and correctness) Billing administrator (Complete the funding detail sheet, send the deal to the lease company, confirm funding has hit, send off docs) Cut any buyout /payoff checks and deliver them to the customer. Store equipment for stream of payment deals, then package, load and deliver equipment to old lease company. Then you...
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Re: Leasing Company Copiers are Underwater
This storm is really exposing the flaws of leasing and their insurance policies. I have a number of clients who are just plain screwed. In the future I would have the customer take the leasing company's insurance and not send in the insurance certificates. I have customers who sent in insurance certificates only to find that they did not have flood contents coverage on their policy. One in particular had not even made the first payment on the lease and had only signed the lease 4 weeks...
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Re: Erie businessman gets fed prison for copier fraud
There is a special place in hell for people who rip off churches. Have a church in my home town that was ripped off for about $20K by a copier company that had already gone out of business. The vendor wrote the church a 63 month lease with the service packed into the lease payment 3 months after the sherif had put a lock and chain on their doors. To make matters worse when the pastor of the church signed the lease he accidently signed in the wrong spot. When we got our hands on the actual...
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Re: Scam from a Local Company
This is not unusual. I know a dealer that would list several pieces of used equipment on one FMV lease show a new model being leased to the leasing company. I have seen signing for a 60ppm unit and delivered a 45ppm. I have seen changing of the name plate showing a faster model even if that was not the case. I have heard of a large buyout that was never paid to customer and dealer kept making excuses to delay the payment. I have seen all sorts of things the real challenge is to explain to...
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Re: Over Holding On MFP Lease Costs Unnecessary Dollars
There is no money left on the table. If someone else upgrades them you have nothing. Also every time you upgrade you go wider and deeper into the account with solutions, MPS, scan stations etc.. Always do a TCO bundle with service. Original lease $1,000 per month Service 20,000 at .01 originally = 200 per month Bumps after 3 years 20000 x 0.013 =260 total current payment 1,260 new service 0.008 = 160-1260 =1,100/.02 = 55,000-18k =37k thats just breakeven. How about charging $100 more? now...
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Re: Who to use for Leasing
We offer prospects two choices: Conventional which is the low rate of the month and "No Hidden Charges Lease" which is through Clune Equipment Leasing (800) 862-6633. They do business the old fashioned way...no Doc Fees, No Propoerty Tax, No Insurance requirements, No Evergreen (Auto-renewal)Clauses, and early buy-outs are based on remaining principal, not sum of payments. Buy-outs cannot be quoted independent of us and residuals are determined in advance. They also will give you exclusives...
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Re: Single click for 11 X 17
Well, there are a couple of ways to look at it. The fact of the matter is, the Canon dealer probably doesn't have a very good handle on the situation. And if the client is running a high percentage of 11x17, then they are going to lose out in service and supplies. We charge 2 clicks for 11x17. And, although I may lose a deal every now and then, by not being close enough to make a difference, we aren't going to lose our pants on mismanaging service. Your service manager is being sensible, you...
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Re: Single click for 11 X 17
Hi Gregory, Minolta's are out of sight on this one. You are correct, this is a walk away. Shifting into a lease rate would be a desireable approach.
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Re: I need a leasing company for a new customer
I have been very pleased with American Express. They have a New Business program...stipulations are that the maximum term is 36 months and the maximum funding is $25,000 and requires 2 down or one payment plus 10% security. There also is no Propoerty Tax for any deals under $25,000, 30 day NET plus 15 Day Grace period before late penalties, Buy-out to Return is less than sum of payments, and their end-of-lease terms are better than anything I've seen. 36 month FMV with -0- Down is .0271.
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Re: Current Lease Rates
As long as we keep going with whoever has "The low rate of the Month", leasing companies will continue to come up with what I call "alternative forms of revenue." As long as lease companies feel that we don't care about anything but low rates, they will continue to lower their rate with the intent of getting their profits back in new ways. How many of you know whether your lease company charges "rental" for days between the day a copier is delivered and the day the lease commences. Even...
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Re: buyout of xerox leases
You actually do not need a buyout from Xerox unless you intend to keep the unit. I have done this for years: I calculate the remaining payments on the lease, I always calculate with the leasing compay billing in arrears for the first payment. I then put it into a spread to sheet to double check all of the months that have expired. From there I explain to the customer that they have x amount of payments left, and that we do not pay for late fees or any other charges and we will either cut the...