Over the years, I have been amazed at how many merchants were leasing their POS equipment. I know, for a fact, that there are many merchant level salespersons (MLS's) that are making their primary living selling leases for, let's say, only $39.95 (or more...I've seen many at $69.95....what a ripoff!!!) per month for a 36 month lease.
Let's do the math on this one. That would come out to nearly $1500 for the three years. Then, when the lease is up, you could buy it outright but that would typically cost you about 10% of what you paid in total lease payments. Or, in other words, in this example, an additional $150. So, you would have paid about $1650 for a machine that you probably could have purchased outright for $500 or less. Guess what, the rep that leased you that machine, he/she is getting the $1000 or so profit on the lease....up front. Don't need to do too many of those a month to make a nice living. Consequently, they're not really interested in you or in building a mutually rewarding long-term relationship with their merchants. They're in in just for themselves...for the quick buck.
Now, here's where it gets worse, in my mind. At the end of the lease do you think that the leasing company will contact you to let you know that your lease is up????? Not a chance! Read the fine print on your lease. At the end of the initial term, unless you call to cancel and let them know of your intentions regarding the machine, it automatically converts to a monthly rental at the same rate. And, it will go on and on and on..... I've run into merchants that were still paying monthly, two years after their three year lease was up. Simply because they "forgot" about the original term. OUCH!!!
Come on over to one of my websites for some "education". It won't cost you anything and, just maybe, it could end up saving you quite a bit. Here they are:
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1 comment:
There are certain differences between leasing and purchasing POS equipment as far as its business is concerned.
POS Equipment
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