Photocopier Leasing Levels Reach Record High

Latest figures reveal that photocopier leasing is now by far the preferred choice for organisations looking to acquire new office equipment. Back in 2009, Canon Copiers reported on the impact the recession had been having on the ratio of photocopier leases as against outright purchases. It was clear at the time that cash flow restrictions for many meant outright purchase was no longer a viable option. This, coupled with the efforts photocopier suppliers had been making to secure lease finance for customers, meant photocopier leasing levels had increased considerably – over 60% of new business at Canon Copiers at the time was in fact from photocopier lease customers. Well, over a year on and Canon Copiers can reveal that an even greater proportion of its business is coming from photocopier leasing customers – as much as 80% of total sales. Here we'll examine how the balance of business has changed within the last twelve months, what's driving these changes and how photocopiers suppliers are responding to the change in customer preferences.

Record Highs for Photocopier Leasing

Since the start of the recession in 2008, photocopier leasing levels have been increasing consistently, on an almost month-by-month basis. Before the economic downturn, photocopier sales were split more-or-less evenly between outright purchases and photocopier leasing. But as the economic situation became more tenuous going into 2009, the number of organisations looking to lease photocopiers rather than purchase outright rose significantly – in one month in 2009 leasing levels reaches a high of 62%.

What's astonished many at Canon Copiers has been the further strengthening of this trend away from purchase and towards leasing. Having thought that 60%+ would have represented somewhere close to a peak for the maximum possible leases Vs purchases ratio, 2010 surprised us all. Across the year, Canon Copiers recorded average photocopier leasing levels (as against purchases) of around 75% - that's over 15% higher than 2009's levels and a new all-time high for the business.

What is Driving the Increase in Photocopier Leasing?

The tendency towards photocopier leasing as opposed to outright purchasing can be best explained with reference to two primary decision-drivers. Most obvious are the cost/cash-related draws of photocopier leasing which have become ever-more apparent as the recession has taken hold. Second are those non-cost related advantages which photocopier leasing can offer, such as enabling customers to keep up-to-date with technology, by regularly replacing devices as they move from one lease to another and the ability to have device maintenance and the associated replacement parts/toner handled entirely by someone else.

Starting with the cost/cash appeal of photocopier leasing, the most obvious advantage which is undoubtedly more keenly felt since the start of the recession, is the avoidance of any up-front expenditure on devices. Without knowing every customer's reasons, with typical workgroup photocopiers costing in excess of £5000, sometimes even £10,000, it's easy to see what businesses may be trying to avoid. Many organisations revenues have been hit hard by the recession and so in a large number of cases, and particularly with small and medium-sized businesses, the cash flow simply isn't there for large purchases such as photocopiers.

With such uncertain times ahead, photocopier leasing not only reduces the burden for business cash flow but it also minimises financial exposure. Photocopiers do not need to be seen as a company investment, they can be regarded by organisations as a low, manageable monthly rental cost, such as a rented telephone line or rented web space.

How are Photocopiers Suppliers Responding to the Market Changes?

As far as financial exposure is concerned, the way photocopier leases are now structured means many organisations are able to commit to much shorter photocopier lease terms. Suppliers, including Canon Copiers have made great efforts in tailoring leases to customers' requirements and in the current economic circumstances, where long-term commitments may not be possible for businesses, this has helped a great deal. In terms of those non cost/cash advantages of photocopier leasing, shorter terms leases obviously means organisations are able to renew their devices more frequently and are better placed to take advantage of improvements in technology more-or-less as they occur. With the latest devices offering an ever-increasing range of features, such as on-the-cloud printing/scanning and quick and direct scanning to numerous digital locations, staying on top of developments can clearly have a very real impact on a company's bottom line, both in terms of the time that is saved and the additional resource that is added to business capabilities.

As well as the better technology that comes with regularly renewing a photocopier lease, many organisations have clearly been eager to effectively ‘rationalise' the running and maintenance of photocopiers by leasing them. Most photocopier leases enable users to a pay a simple cost per page and/or a monthly rental charge which not only helps organisations plan their spending over time but also saves a great deal of time and manpower by leaving the photocopier supplier/leasing company to fully maintain devices and replace anything that's required – essentially, everything but the paper – that's any servicing, toner or parts. For the great many businesses that are currently working overtime to stay afloat in very difficult economic circumstances, the time that would be required of in-house staff to look after photocopiers is much better spent on more pressing and financially rewarding tasks. From this point of view, photocopier leasing can effectively streamline an organisation's time and brings the added bonus of truly minimising device downtime, as good photocopier leasing companies are technologically-equipped to monitor toner levels and ensure toner can always be refilled before it ever fully expires.

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The positive news in amongst the economic gloom is that attractive lease options from photocopiers suppliers seem to have prevented many organisations from either sticking with outdated machinery and/or failing to provide new devices where they're urgently required. With the most flexible leasing arrangements ever, even during the worst recession since the photocopier's invention, organisations are still able to take full advantage of continual improvements to what is an absolutely indispensable office technology.

Canon Copiers invites enquiries from any businesses considering photocopier leasing.