Should I Rent or Buy a Franking Machine?

Should I Rent or Buy a Franking Machine?

With the rise in e-commerce more and more companies are looking into franking machines to help reduce their postal costs. After all, franked mail is a lot cheaper not to mention more efficient. More so, Royal Mail has offered discounts for franked mail and the discounts have doubled in recent years. From the small to the mid-sized and even large organisations, regardless of postal loads, many companies and businesses alike are resorting to use of franking machines for their day-to-day mailing, thanks to the myriad of advantages that these machines offer.
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In the UK, there are a good number of authorized manufacturers and suppliers of franking machines, and this basically means supply is not a problem. However, the main question that many businesses ask is; should I rent, or buy a franking machine?

Different people have diverse opinions on this issue. While most companies would prefer the renting option stating that it is more convenient for any business, some would rather go for the option of buying their very own franking machines. So which option of the two gives more advantage?

Buying a Franking Machine

Neopost IS250 Franking Machine

Neopost IS250 Franking Machine

While the cost of purchasing a franking machine may be very high initially, you could argue that it may be worth it. Buying allows you to have full ownership of the machine free from any contracts that come with leasing or renting. You could think of it as an additional asset for your company or business. This option comes with the advantage that, there will be no more recurring costs after the purchase except for the service and maintenance costs which are mandatory. This means that there will be no more worries every end month on payments for the rent or lease of the machine.

Nonetheless, there are strong disadvantages of buying over renting. The large cash outlay for example. Coming up with the huge amount of money to buy the machine may prove challenging for many businesses. Moreover, by buying a franking machine rather than renting or leasing, you risk limiting future equipment upgrade. After all, change is inevitable and technology is very dynamic.

Renting a Franking Machine

Most companies in the UK have a preference for renting franking machines as opposed to purchasing one for their company. This could be because of the many benefits renting presents and below are just some that you stand to enjoy.

Franking Machine Cost

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Most companies will want to cut down on their costs as much as possible and let’s face it, franking machines are expensive. Even for an already established business, the cost of purchasing the machine may be a little too much. The initial price for a new machine could start from £1,000 or as little as £400 for a used machine. If you are just starting out, these costs may be insanely high.

However, a rental agreement can allow you to pay as little as £14.99 monthly for a franking machine with a 30-day free- trial, meaning you will be able to go test the machine and gauge if it was the right choice for your business before sealing any contract.

Franking Machine Service Contracts

Royal Mail necessitates that a franking machine, regardless of whether bought or rented, undergoes service checks periodically to ascertain that they are in proper working condition, that they are functioning as required, and that they have not been tampered with in any way. This translates to additional costs of paying an independent service contractor if you buy the machine.

Conversely, a rental contract normally caters for the maintenance and service costs as well; which means that you will be certain of the amounts you will be required to pay on a monthly basis with no hidden charges to be expected later. Similarly, other rental contracts will come with an uncompelled maintenance agreement. This basically means that whenever your machine develops a problem, someone will come and fix it for free.

Staying Updated

Finally, there is the advantage of staying up-to-date as far as technology goes. This is by far the best reason to highly consider renting as compared to buying a franking machine. Renting allows you the option to grow your franking requirements as your company or business grow with time.

The basic machine model franks up to 20 mails a minute which is alright for a small office holding three people, but what happens when your business grows to a 40 person capacity?

Besides, franking machines may not be as dynamic as mobile phones but the Royal Mail and manufactures come up with new better models once in a while writing off old ones. If your model is written off it will be of no use to your company.

Renting will help you avoid both of these problems since it gives you the option to upgrade the machine during the renewal of the rental contract. Should the model that you have been renting be written off you can be able to upgrade to a more suitable model.

Decided to rent? Good choice! At Business Quotes we make it our business to ensure you get the best price for your rented franking machine. Fill in a short online form and we will ensure we get you some of the best quotes at no fee. Try us today and get the best value for your money!

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