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.
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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/
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