The post Covid era combined with the looking recession is still paying havoc with many of my lease renewals.
Like others have stated on these forums, I've moved to offering a 24 month renewal if the is in renewal or will not budge to a long term 60 month lease. In most cases I'm offering the same price per month for 24 month term. Recent sales have netted $4K GP and $3K GP.
What's more interesting is that I can start the process again in 18 months or so. At that time the MFP will be either 7 years old or close to 7 years and the who wants a 7 year old MFP hanging on the network. In addition, I'm keeping the cost on the MA the same as it was, meaning if there is an escalator then that stays in place. Thus in 18 months, I can do the math to show the total cost of savings with the lease cost and maintenance.
Thus in 7 or less years you are getting three chances to make GP
- initial sale GP (1) made on sale 60 month term
- Re-lease sale GP made (2) on sale 24 month term or less
- Upgrade lease for new sale to replace 7 year old MFP, GP made (3)
dang, now I only wish I had more time to work this!
Art