It’s a bit of a chicken or egg situation really when it comes to deciding how best to introduce a franking machine to the office/administration department of your business.
If you have been in business for some time and are now experiencing significant growth that requires extra reliance on the postal service then buying a machine outright might be affordable and less costly in the long-run than renting.
Or maybe you are a new business, unsure yet how your company will develop, but you are anticipating spending a lot on mail-marketing and mail-shots, in which case your budget may best be deployed through the more cautious route of rental/leasing.
That is the size of your daily/weekly postal requirements. The more mail you have to send the bigger and better machine you will need. That’s pretty obvious…as is the fact that bigger and better machines will cost more to buy.
This is possibly the crucial factor to consider, because if you’re looking at buying a Medium to High Volume franking machine then you are talking £1,000s—anything from between £3,000–£22,000 to be precise.
And if you’re talking big machines handling from 100 to 10,000 pieces of mail an hour then it is inevitable there will be breakdowns somewhere along the line over the course of year.
If you buy a machine, you will have to hire someone to fix/maintain/service your machine on a regular basis.
If you lease/rent, you have the peace of mind that any breakdowns will be covered by your agreement.
And of course it should be remembered that most lease agreements have the option to hand ownership of the machine to you once the lease has run its course. Leasing is many instances is purchasing over a period of time (usually 3–5 years).
Let’s not forget, you are not just buying or renting a machine—you will need to factor in the cost of running your franker. If you buy your machine outright, you may find buying the peripherals (ink catridges, labels, postal top-up fees, Internet updates, etc.) more expensive than if you were leasing/renting. That’s because you may find a franking machine supplier who will offer you some good monthly deals on the extras in an effort to secure your custom.
Time Will Tell
In these uncertain economic times the success of your business is possibly just as uncertain which makes leasing/renting a franking machine the more sensible course of action (in our opinion).
Cash flow, budgeting, and cost-savings are the vital monetary cogs of any business. They need to be reined in as tight as possible. Leasing/renting a franking machine gives you that monetary control over the expense of running one with the knowledge that over time the machine could be yours to own outright.
Leasing/renting makes more economical sense in the long run, because buying a franker outright could scupper your business in the short term.
The Advantages of Buying Your Franking Machine
- No monthly rental payments
- No contract ties
- Your franking machine becomes an asset
The Advantages of Leasing/Renting Your Franking Machine
- No initial (and potentially large) payment
- Upgrade/downgrade option in tandem with changing postal requirements
- Leasing/rental agreement will include breakdown/maintenance service
Finally, A Word of Warning
Whether you choose to rent, lease or buy a franking machine it is imperative to you ensure it is a machine that it comes from a reputable manufacturer/supplier dealing in machines that have the seal of approval of Royal Mail.
If it doesn’t, then you will be wasting your money regardless of whether you have bought it or are renting it.