Tagged With "Inflation and Rate Increase Hedge"
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Re: Target GP Margins
There are a lot more of those than there used to be. That's why our industry has to change the way they add prospects to the pipeline. They are going to have to actually start marketing for a change (spend dollars on marketing instead of salespeople) & do things to position themselves as a resource companies will contact when they need something versus salespeople throwing a million lines in the water hoping they get a bite. It's got to be all about generating in-bound leads and...
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Re: Toshiba now has tier based CPC's?
Our Ricoh SSS told us about it. I'd love to be the first one to push it & make everyone else react. Plus, it would improve profitability if we could charge a higher rate for higher page coverage.
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Re: Nsi Autostore
Personally, I have not been successful in selling Auto Store so I'm probably not much help. However, I would ask why it would be necessary to bundle these things. If I was fortunate enough to be in a situation where the customer sees the value of the software and this criteria is necessary, I would propose a basic workflow and 3rd party DMS integration and Sharepoint integration would be professional services at a billable rate or discounted block of time.
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Re: Charge for IT support
Art, We charge an hourly rate for onsite, 1/2 that rate for remote support. We offer it as part of the Service Contract, as well as a separate block time (5, 10, or 20 Hours). Vince
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Re: KonicaMinolta One Rate webinar Recording from 9/14/2018
Art, Can you please send me the Webinar recording? KonicaMinolta One Rate webinar Recording from 9/14/2018 Thanks, Ron Mouzakes, Jr. Client Executive US Direct Sales-Office Solutions-Enterprise Accounts Ricoh USA, Inc. Ricoh Global Services 500 Commack Rd, Suite 140 I Commack, NY 11725 Email: Ronald.Mouzakes@ricoh-usa.com Phone: 631-764-2705 I Fax: 212-202-5154 https://www.ricoh-usa.com/en/insights EMPOWERING DIGITAL WORKPLACES: RICOH IMPROVES WORKPLACES USING INNOVATIVE TECHNOLOGIES &...
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Re: Post KM Flat Rate Webinar Follow Ups
Art, you sent me a copy of the One Rate Seminar, but now I can't find the link. Could you please resend it to me? Ken Lee Sales Manager Ephesus Office Technologies, Inc.
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Re: Ethos Tech Flat Rate
If you don't think that One Rate or Flat rate will sweep the industry , then think again! Need to know more? Ask me our about One Rate Webinar scheduled for the 14th of this month. apost@p4photel.com
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Re: Your Copier
Welcome backđ https://www.p4photel.com/blog/...-the-copier-industry 6 Reasons Why Flat Rate aka One Rate Will Change the Copier Industry Art Post 36 minutes ago I remember when plain paper copiers used rolls of paper and not sheets. I remember when the glass on the copiers had to move back and forth. I remember when copiers used liquid ink (toner) to produce an image. I remember when you used a dial to set how many copies you wanted to make. Yup, it's been a pretty incredible journey to see...
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Re: Is This the Beginning of the End for the Padding of Lease Rates?
This bill may not apply to Fair Market Value leases. There is no mention of establishing the residual value of the asset which makes the interest rate impossible to calculate. Is a .0278 rate on a 36 month FMV truly -0- interest? Of course not. If you don't end up with title to the equipment, you really haven't financed anything. What is the interest rate on a Hertz Car Rental? What is the difference between that an a 36 mth FMV other then the length of term?
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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: Is This the Beginning of the End for the Padding of Lease Rates?
In some cases, more is made on the lease padded rate than the salesperson makes in commissions. Others may tell you that they use the "padded" rates to create promo's for the reps. Do I look like I need an incentive to sell? Frak that, if you need an incentive to sell then you need to get a job at Mickey D's
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Re: Is This the Beginning of the End for the Padding of Lease Rates?
Here is a report from leasingnews.org. One of their legal editors is doing a three part review of this legislation. Leasing News Exclusive: State Senator Steven Glazer and the genesis of CA SB 1235 (Part 1 of 3) By Tom McCurnin Leasing News Legal Editor This is important not only if you are doing commercial business in California, but this may affect other states. If you are new to this, here is legislation passed both the assembly and senate, awaiting California Governor Jerry Brownâs...
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Re: Is This the Beginning of the End for the Padding of Lease Rates?
Part Two: Leasing News Exclusive: The Opposition and How Senator Steven Glazer Got SB 1235 Passed (Part 2 of 3) By Tom McCurnin Leasing News Legal Editor The bill was "Engrossed and Enrolled" and presented to the Governor at 5 p.m., September 12th, awaiting his decision to sign or veto. How He Pushed It Through the Legislature What are the takeaways from this interview and SB 1235? âȘ First , I Was Surprised at the Overwhelming Support of Trade Groups for the Bill. When he rattled off the...
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Re: Is This the Beginning of the End for the Padding of Lease Rates?
Part Three Leasing News Exclusive: Is the Disclosure Too Complicated? State Senator Steven Glazer Position on CA SB 1235 (Part 3 of 3) By Tom McCurnin Leasing News Legal Editor The bill to require full disclosure of interest rates is awaiting Governor Jerry Brown's signature. It was reviewed to be recorded and sent to his office late last week. It seems unlikely he will not sign it as it passed the State Assembly 72-3 and in the Senate 28-6 .It then will be up to the California Department of...
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Re: Xerox explores sale of leasing finance unit: sources
Oce did that 10 years ago and went bust. They didn't realise how much they relied on the monthly rental income and how inflexible third party leasing companies are when you want to upgrade mid term. The financing arm is usually the most profitable side of the business. High interest rate to customers, low rates for them and if the customer goes bust you generally get you equipment back and at the end of the contract you get your gear back.
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Re: Color MFP Trends, Tactics, etc
I have one of these in the P4P market, after 4 months all seems well and customer is satisfied with media offereing and quality. The one thing that has changed for this unit, since its the same engine as the MPC6000 and MPC7000 is that default from the factory is 11x17 single click and lower consumable costs. Making an inroad will depend on how dealers will position this unit, dealers more than ever can now be competitive with single click 11x17, and if you're going to play in the P4P you...
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Re: Is selling at cost the future for print hardware?
Hrmm, well, sure they are. Notice it doesn't say anything about Service or Supplies, we can assume those are either at their normal rate or slightly elevated. It doesn't say anything about lowering the lease rate on this MFD you are buying at "cost" either, so we can assume those are also either at normal or slightly elevated. If we also assume that their sales will increase by X amount due to the promotion, the only loss they could expect from this is if X amount of additional revenue...
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Re: Personal Property Tax
First of all, we don't have this problem because the lease company we use (Clune Leasing) doesn't charge property tax. However, the potential pitfalls: 1.) Using a rate that was to include it and then having the lease company deny it later. That happened to us with Marlin Leasing. Make sure to get documentation ON EVERY DEAL done this way that all property tax is included. 2.) Property tax is a percentage of the funding amount. Anything added to the lease that raises the amount of the lease...
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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
When rereading your posts I see that you are attributing a value to the lease rate which you cannot do. .0302 is not $.0302 nor is it 3.02% or any such thing. .0302 is just a factor. Behind the scenes of the lease company's spreadsheet there obviously is an interest rate that contributes to the establishment of the rate factor but the factor is a derivative of a multipile of issues that combine to establish a number (rate factor). It is really no different than the square root of pi being...
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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: Latest Lease Factors
Plus, so many lease rate factors are packed from management. Here's some I've seen 36 months .0284, 48 months .0242, 60 months .0200. The dollar amount of the deal also plays a role in the rate factor.
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Re: Ikon Cost Per Page for Ricoh 1357 Pro
That's insanity. Have you seen the hardware pricing for the system? Maybe they're front-loading the price of the machine to buy down the service rate.
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Re: Lease Approvals
I thought we had a thread similar to this and maybe even a poll. I would say that 90% of my deals are getting approved by the likes of GE, DLL, Great America, etc, however I am pre-screening customers now and not even taking apps from some, due to thier industry and or financial status. Some have bought and others have tried elsewhere, thus the reason my approval rate is high is because of the pre-screening and I believe would be far lower than 90%.
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Re: The Effect Currency Evaluations have on the MFP industry
The Japanese Yen has reached a 15 year high against the USD forcing all Japanese companies to intensify their efforts to manufacture their products abroad. Japan Iron and Steel Federation Chairman Eiji Hayashida said at a regular press conference that an exchange rate of around 90 yen against the dollar is appropriate for fair global competition. "The (current) exchange rate in the 81 yen range is very harsh when (Japan's) present economic conditions and the competitiveness of (Japanese)...
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Re: Judge approves a $4.9 million settlement to businesses who were charged payment incre
A judge ruled in favor of a class action lawsuit involving businesses nationwide, including ones from South Florida. South Florida businesses that are part of a larger class action lawsuit against two companies were awarded a portion of a final settlement of $4.9 million after the judge ruled in the classâs favor, a press release said. âApproximately nine thousand class members nationwide were included in the settlement,â said Lance Harke, lead attorney for the case from law firm Harke...
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Re: Q. How does your company handle networking charges?
Assuming we've used the 2 hours per machine connectivity time that we include for each install and that this isn't resolving issues that we created, this would be billable at an hourly rate in the neighborhood of $100 per hour. Depending on availability, the work would be done by either an SE, break/fix tech or a member of our Network Services team. We are an independent dealer in the Southwest that provides either hourly support, block time or full-on Managed Network Services. We can do the...
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Re: Comp Plan Poll
Above a base salary. I am paid as follows: A flat % of the total revenue based on the Gross Profit. The higher the GP the flat % is increased. Once GP is higher that 15% I am paid a % of the GP in addition to the previously mentioned Flat % of Revenue. this is on hardware revenue only not aftermarket. Which is the reason that aftermarket is spiraling downward. Comp us on aftermarket and watch click rate go back up.
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Re: Comp Plan Poll
bear95 We have a comp rate clicks for new customers only and the % is pitiful. I'm in agreement with you!
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Re: Would You Loan this company Money?
Currency in Millions of U.S. Dollars As of: Mar 31 2008 USD Mar 31 2009 USD Mar 31 2010 USD Mar 31 2011 USD 4-Year Trend NET INCOME 16.0 1.9 -21.6 -32.6 Depreciation & Amortization 6.3 6.5 4.7 9.0 DEPRECIATION & AMORTIZATION, TOTAL 6.3 6.5 4.7 9.0 (Gain) Loss from Sale of Asset -0.1 0.2 0.1 4.9 (Gain) Loss on Sale of Investment 0.9 0.1 0.0 -- (Income) Loss on Equity Investments -0.3 -0.2 -0.3 -- Change in Accounts Receivable 12.0 5.6 8.7 -6.1 Change in Inventories 0.3 -16.3 25.8 -4.0...
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Re: Why is single clicking an 11Ă17 on a âcopierâ legal?
Actually, the real misleading practice is when the machine is set to double-click 11x17. It is one piece of paper, one printed page, one click. Like having a car odometer that registered two miles when you drove the car one mile uphill, or registered two miles when you drove one mile at high speed. The industry simply developed its own conventions with the single/double click convenient for both the end-user and the dealer. Rather than a click rate for each paper size (similar to two...
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Re: Why is single clicking an 11Ă17 on a âcopierâ legal?
Price at your acceptable margin. If your price is paid, take the business since it already has the acceptable margin. If customer will not pay your price, walk, secure in the knowledge that taking the deal would not provided your acceptable margin. I think we are overcomplicating it. Deal XYZ on a P4P has $X of equipment margin, $Y of lease margin, and $Z of service margin at the agreed rate, regardless of whether we are billing single or double click. If $X+$Y+$Z is acceptable, move...
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Re: Selling Copiers & MFP's "How to be Successful"
An opportunity would be the delivery of a quote for a product or service. We rate opportunties at 3 points!
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Re: Transform Global 2012
Day one has passed and overall, I'm impressed with the event. I actually ran into a couple of P4P members and finally after all of these years got to meet Lee Rummage from RJ Young. On Wednesday evening Oki hosted the evening reception @ Hiltons Signature Island. Food, drinks and networking, at this time I also had to the chance to meet Greg Walters (Death of the Copier) and now the newly elected President of the MPSA. I also ran across many new contacts and believe it or not many readers of...
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Re: Marlin Does Not Disclose Possible Loss Of Evergreen Payments
Iâm surprised that there isnât more leasing chatter because there seems to be a growing awareness of how most leasing companies make their money. The member who correctly analyzed Marlinâs profits was right on the mark. Not many leasing companies are public entities but when they are one can glean a lot of info from their 10Qâs and 10Kâs. The leasing industry vigorously defends evergreen to its detriment. Whenever a state bill is introduced to restrict or outlaw evergreens they send someone...
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Re: 0% Copier Financing
SSG: I have never seen a 36 month Zero interest lease for a dollar purchase option. I've heard that the reason there is no real low or zero type of finance lease ($1) because it would be extremely difficult for them to repo a copier that is in someone office or house. The only way I know to make it work is to fudge the numbers. Meaning you sell the system for MSRP and then offer them a $1.00 purchase option. The leasing company would fund you off of the $1.00 out finance rate. Thus if the...
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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
What is the detailed calculation to figure out the actual interest rate on a lease rate? Take for example, a 60 month FMV term, 5% Residual with a rate factor of $20.92 monthly. $2,501- $5,000 value. Thanks,
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Re: 0% Copier Financing
Financial calculator (HP12c) 60 [n] 1000 [pv] 50 [-][fv] 20.92 [-][pmt] [i] is monthly, 12 [x] is annual The formula is PV = FV(1 + i)-n + PMT 1 - (1 + i)-n i You can flip the formula around to solve for i, but financial calculator is faster. In your example, i is .8853 per month or 10.62 annual. Probably didn't format well, go to "Present Value of an Annuity" here http://people.hofstra.edu/stef...World/Summary10.html
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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: Competing against A4 sharps
These are A4 models?? First things first, I would tell them Sharp just lost another 1.4 billion dollars last quarter. With these types of losses, layoffs come first and then services deteriorate (hope I spelled that right) In the US Sharp in a minor player in the market. What happens IF sharp bails out of the US marketplace? Sharp makes too many average products and nothing that is over engineered. You get what you pay for. If these are A4's, I have major doubts about how they will hold up...
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Re: The Top 10 Innovations in document management history
Somewhere towards the end of the list should be the introduction of devices that scan, followed the introduction of Document Mgt software. At any rate the speed of innovation in DMS is arching upwards rapidly in the last ten years.
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Re: Managed Network Services discussion
Sounds like you guys have started a completely new division. As I said earlier there is no synergy, you had to completely start from scratch except for maybe billing, the overhead is incredible and let me guess none of them work on MFP's and the sales people don't want to sell it because its a PIA for little return. Next, let me guess, (if its not already) will be a quota on MNS tied to MFP payouts. If you sell $30k MFP's with no MSN Commission rate is X% if you sell some contracts it is...
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Re: there is no end in sight to Sharpâs crisis.
From Industry Analyst. By Andy Slawetsky, President, Industry Analysts, Inc. Industry Analysts, Inc. has learned that Sharp Electronics has terminated their agreement with Xeroxâs Global Imaging (GIS). The contract will end on November 26, 2012. After that date, GIS will no longer be able to purchase Sharp hardware and accessories. Sharp will continue to provide supplies and parts to GIS for the foreseeable future but they have eliminated discounts. According to Rich Boomsma, Senior VP of...