Xerox contract- maintenance increase

[Brett S]

I am getting ready to sign a contract for a Xerox 700. Some friends have recommended a 30 day trial as part of the agreement to make sure the machine does what they say. My xerox rep has said it is covered in the total satisfaction guarantee + it would push the sale to next year. I believe this is the right machine given what we run, I am just trying to cover my bases. 2nd thing, this is the big one. The contract allows for up to a 10% increase in the maintenance portion of the agreement, since the lease is for 5 yrs. that is a big jump.

Any thoughts?

 

[Craig]

Mine went from .049 to .0524 in 1 year. See if they will lock that number in, after I complained to my sales monkey he said "oh we could have locked that in but your lease would have went up a few dollars".

Also the "Total Satisfaction Guarantee" will replace the machine with like for like not necessarily a new box, make sure they spell that out too. I could be wrong but I doubt they will give you your money back if you hate it.

Oh, one more thing if it's a 700 make sure you get LOTS of toner when it's installed.

 

[Happyprinter]

I hope things have changed from our past experiences with Zerox, but, our experience is dont rely on their "Total Satisfaction Guarantee". Years ago we bought a new color machine that was a lemon. It took us 6 months and threat of a lawsuit to get the machine taken out and replaced. Like I stated, it was about 10 years ago and hopefully things have changed, but, make sure all your i's are dotted and t's crossed. Make sure you have a good idea of click costs in writing and you understand what it will involve cash wise over time.

 

[Keith]

I locked my click rate in for 5 years at .0529. I did the math and it was a no-brainer, even assuming only a 5% annual increase.

 

[UberTech]

I would push for the 30 day trial. regradless who sold it. Once you sign, any guarantee is negotiated on xerox terms. If it is on a trial atleast you have an option to pull the pin. Ask yourself, why doesn't he want you to demo the unit for 30 days? You going to have it for another 1824!

 

[Johntron]

Because all the Xerox reps are pushing hard for end-of-the-year sales.

 

[X33]

Whatever pricing you have today in your hands, may not be available in January. It's the end of the fiscal year for Xerox, this is the best time to buy.

All maintenance agreements have the 10% maximum increase paragraph in it. It doesn't always go up, sometimes it goes up 5% or 8%, and sometimes 0% (in Greg's case, it went up 7%). It's a protection clause for vendors, in case something dramatic happens in the market. You could lock it at the beginning, but you are automatically increasing it since the beginning. I always recommend not do it, but it's your choice.

 

[Realwelder]

With locks on service, I suggest you all read the T&Cs of the contract. The manufacturers are getting killed on the coverage printers are laying on the pages. I am seeing them invoking the coverage clause in the contract stating if the manufacturer yield is being surpassed they can charge for the toner on top of the click charge.

Obviously it is the manufacturers' fault for under estimating the true consumable costs. Expect to see a change in contract structure in the near future.

 

[UberTech]

Get installed and commit to the price now IF the 30 day trail is succsesfull, I mean if it does what they say and what you want where is the problem?

It is safe to say that no vendor is making money off service when it to comes to these type of machines.

 

[ruby913]

hi

hi

hi everyone, i am a new one here,hope can make many friends here to communicate the ink and coatings topics

 

[Brett S]

Thank you to all that responded. After discussing things with a few local and regional peers (and reading the above posts) we decided on the lower rate and we will hold our breath on the increases. After running the numbers based a 5% per year increase over 5 years, the difference between the two maintenance options was less than $1000. I would rather have the lower payment today (we just bought a building and the business 3 months ago) and deal with the increases in years 2-5. Thank you again for your help, I think the 700 is going to be quite an upgrade from the CPP 500 we currently run.

 

[lfelton]

In my experience (which is quite a lot of machines bought & leased from 2 different vendors), they will always try to screw you as badly as they possibly can. You WILL be hit with as large a price increase as they can possibly get away with. I'm afraid that what sales people (your own and the ones on this forum!) tell you is completely worthless. When you get hit with the price increase they will have completely forgotten any assurances previously given.

I've long since "wised up" and get the terms for price increases agreed in writing prior to signing any new contract.

Case in point, K-M tried to stiff us with a 9.2% price increase after the first year of running with their boxes. There's absolutely no justification for that, they were purely and simply trying to screw us. I referred them back to the contract, which stipulates the permitted price increases!