Man and woman in business suits discussing the costs and benefits of copier lease
For businesses of all sizes, the question of whether to lease or buy office equipment, particularly printers and copiers, is a recurring one. Ever since the Xerox 914 revolutionized office workflows in 1959, these machines have been indispensable. Even with advancements in technology, the core question remains: is Printer Leasing a smarter move than purchasing outright?
If your business is currently grappling with this decision, you’re in the right place. This article provides a comprehensive comparison to definitively answer the printer leasing vs. buying question. We’ll delve into cost analysis, explore the advantages and disadvantages of each option, and help you determine the best path forward for your organization.
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Printer Leasing vs. Buying: A Cost-Focused Comparison
Commercial-grade printers and copiers, such as the highly regarded Xerox Altalink C8055, represent a significant investment for any business. Printer leasing often emerges as a seemingly more budget-friendly alternative, at least on the surface.
Whether you opt for buying or printer leasing, the total cost of having a functional printer or copier in your office is influenced by several key factors:
- Functionality: Multifunction printers (MFPs) and color MFPs typically carry a higher price tag compared to single-function devices or those limited to black and white printing.
- Printing Capacity: Measured in pages per minute (PPM), printing capacity significantly impacts cost. Higher PPM equates to more sophisticated, heavy-duty, and expensive equipment.
- Intended Use: Commercial-grade printers differ significantly from personal-use models in both features and cost. A compact MFP for a small office will be considerably less expensive to lease or buy than high-output production printers used in professional printing environments.
Considering these elements, let’s analyze the typical costs associated with buying versus printer leasing.
The Costs of Buying a Printer/Copier: A Range from $250 to $250,000+
As mentioned earlier, the cost of buying a printer or copier varies widely based on specifications. Businesses need to be prepared for a diverse price spectrum.
Entry-level commercial printers can start around $250 for a basic model like the Konica Minolta bizhub 3602p, which offers monochrome printing at 38 pages per minute. However, this model lacks copier functionality, making it suitable only for very small offices with minimal paper document needs.
For a more versatile solution, a multifunction printer or copier, such as the bizhub C250i, becomes necessary. While its printing speed is slightly lower at 25 pages per minute, it provides comprehensive features suitable for small to medium-sized businesses: color and monochrome printing, scanning, copying, mobile connectivity, and more. This enhanced functionality comes with a price increase, around $3,500. However, even this price point is dwarfed by more advanced devices.
For organizations requiring high-volume printing (70+ pages per minute), superior resolution (1200 x 1200 dpi), and diverse paper size support, the KYOCERA TASKalfa 8353ci is a potential fit. Designed for larger, demanding environments, the TASKalfa 8353ci offers reliability and high performance. As expected, this translates to a significant manufacturer’s suggested retail price (MSRP) of approximately $42,000.
From this level, prices for commercial-grade printers and copiers escalate further. Production printing solutions like KYOCERA’s TASKalfa Pro 15000c and Konica Minolta’s AccurioPress line can reach hundreds of thousands of dollars, depending on specific configurations.
The positive aspect is the vast array of options available, ensuring businesses can find models that align with their specific requirements and, ideally, their budget.
The Costs of Printer Leasing: Monthly Rates from $50 to $500+
Commercial printers and copiers can represent a considerable financial hurdle, particularly for smaller businesses. This is where printer leasing becomes an attractive alternative, mitigating the need for substantial upfront investment. However, even within printer leasing, pricing varies depending on the device type.
Lease rates typically begin around $50 per month for basic, single-function machines, such as the Konica Minolta bizhub 3602p mentioned previously.
A monthly investment between $100 and $300 usually secures a more feature-rich device. Spending $300-$500 per month should cover a capable multifunction device suitable for the printing demands of a typical business.
High-end, sophisticated devices that cost tens of thousands to purchase can be leased for $500 or more per month.
It’s crucial to remember that the precise cost of a printer lease is influenced by factors like lease duration and included services. A basic lease agreement might not always be the most cost-effective long-term solution, as it often excludes crucial operational costs associated with commercial-grade printers, such as:
- Maintenance and technical support
- User training
- Ink and paper supplies
- Replacement parts
Investing in Managed Print Solutions (MPS) with a reputable provider can address these additional needs. MPS programs, like the ones we offer, often include printer leasing options alongside comprehensive services, regular updates, training, and supply management.
Interested in exploring Managed Print Solutions? Contact our Experts
Advantages of Office Printer Leasing
Having examined the average costs of buying and printer leasing, let’s now explore the specific benefits of leasing.
Benefit #1: Reduced Initial Expenditure
The primary advantage of printer leasing is the significantly lower upfront cost compared to purchasing. As discussed, monthly lease payments of $200-$400 for a capable device are far more manageable for most businesses than a large capital outlay of thousands of dollars for an outright purchase. This preserves cash flow for other crucial business operations.
Benefit #2: Flexible Lease Terms
Reputable printer leasing companies prioritize building long-term, mutually beneficial relationships with clients. This often translates to flexibility in lease terms and conditions. While longer lease periods typically result in lower monthly payments, businesses can select a lease duration that best aligns with their budgetary constraints and anticipated equipment lifespan.
Benefit #3: Potential Tax Advantages
Lease payments are generally considered operational expenses. This means each printer leasing payment can be classified as a business expense, potentially offering tax deductions. These deductions can reduce your taxable income, leading to overall tax savings for your business.
Disadvantages of Office Printer Leasing
While printer leasing offers numerous advantages, it’s essential to consider the potential drawbacks.
Drawback #1: Potential for Additional Costs
In certain printer leasing agreements, additional costs can arise, such as charges for optional services or interest. While optional services are typically avoidable, interest charges are often inherent in leasing agreements. Over the lease term, the total cost, including interest, might slightly exceed the manufacturer’s suggested retail price (MSRP) of the printer if purchased directly.
Drawback #2: Contractual Lock-in Periods
A lease agreement is a legally binding contract. Once signed, businesses are obligated to adhere to the lease terms for the entire duration, whether it’s one, two, or three years. Therefore, careful consideration of lease terms and conditions is crucial to ensure the agreement remains financially viable throughout the contract period and doesn’t become a financial burden.
Drawback #3: Lack of Ownership
The most significant disadvantage of printer leasing is that ownership of the equipment remains with the leasing company. The business does not gain an asset. While some leasing companies offer options to purchase the equipment at the end of the lease term or transfer ownership, others require the equipment to be returned at the client’s expense upon lease termination.
The cost of commercial printers and copiers spans a wide range, from a few hundred dollars to over $250,000 for high-volume production models.
An industrial printer/copier, leasing which would be more cost-effective than buying one
Advantages of Buying an Office Printer/Copier
If printer leasing doesn’t align with your business needs or preferences, purchasing a printer or copier outright is another viable option. Let’s examine the pros of buying.
Benefit #1: Immediate Ownership and Control
The primary advantage of buying is immediate ownership. Once purchased and installed, the printer or copier becomes an asset of the business. This grants complete control over the device, allowing businesses to manage maintenance and usage as they see fit.
Benefit #2: Potential Long-Term Cost Savings
While the initial investment is higher, buying a printer or copier can be more cost-effective in the long run. Aside from consumables like ink and toner, and occasional maintenance, buying involves a one-time expense. It avoids the ongoing interest charges and potential service fees associated with printer leasing, potentially leading to lower total cost of ownership over the equipment’s lifespan.
Benefit #3: Asset Acquisition and Potential Resale Value
Purchasing an MFP transforms an expense into an asset. The printer or copier becomes part of the company’s balance sheet, contributing to its overall equity. Like any asset, it can be liquidated or sold if the business needs to generate capital quickly. While resale value depreciates, it can still recoup some of the initial investment.
Disadvantages of Buying an Office Printer/Copier
Despite the benefits, buying also presents certain disadvantages.
Drawback #1: Significant Upfront Investment
The most prominent drawback is the substantial initial cost. Professional-grade printers and copiers are expensive. Purchasing one outright can significantly strain a company’s budget, potentially impacting cash flow and other investments.
Drawback #2: Challenges with Upgrades and Obsolescence
A key advantage of printer leasing is the ease of upgrading equipment. Leasing agreements often allow for upgrades to newer models as technology advances or as business needs evolve, typically without significant additional costs.
This is not the case with purchasing. The typical lifespan of a commercial copier is around five years. Once it becomes outdated or less efficient, businesses face the full cost of purchasing a replacement.
Drawback #3: Increased Responsibility for Maintenance and Support
Printer leasing often includes maintenance, repairs, and technical support in the monthly fee. This provides a hassle-free experience.
However, ownership shifts the responsibility for all maintenance, repairs, and supply procurement to the business. Sourcing cost-effective ink cartridges, finding qualified technicians for repairs, and managing downtime all require time, effort, and additional expenditure.
Printer leasing often includes benefits like maintenance and repairs within the monthly fee.
Man changing the ink cartridge of a leased copier
Printer Leasing or Buying: Which is the Better Choice?
While both printer leasing and buying have their respective advantages and disadvantages, printer leasing often emerges as the more advantageous option for most businesses. Here’s why:
- Reduced Responsibility: Printer leasing alleviates the burdens of maintenance, repairs, and technical support, allowing businesses to focus on core operations. While ownership provides control, it also adds responsibilities.
- Cash Flow Management: While the total cost might be slightly higher with printer leasing due to interest, the smaller, predictable monthly payments are significantly easier to manage for cash flow compared to a large upfront purchase.
- Comprehensive Support and Service: Printer leasing agreements typically include access to qualified technical support, training, and maintenance services, eliminating the need for businesses to source and manage these aspects independently.
Overall, printer leasing presents a convenient and often more cost-effective solution, particularly when considering the comprehensive service and reduced upfront capital expenditure. It minimizes the financial strain on cash flow while offering peace of mind and convenience.
Furthermore, printer leasing can be seamlessly integrated into a comprehensive Managed Print Solution, addressing a wider spectrum of document management and printing needs for your business.
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