MPS and Leasing:How to Prepare, Profit and ProtectHarry B. Hecht
MPS and Leasing:How to Prepare, Profit and Protect• Where does leasing fit with MPS?• What are the challenges?• What are t...
MPS and Leasing:How to Prepare, Profit and Protect• What is important to know?– 1st question to ask – “Who’s customer is i...
MPS and Leasing:How to Prepare, Profit and Protect• Reduction in administrative expense– Cost of invoicing (print and post...
MPS and Leasing:How to Prepare, Profit and ProtectCPC @ 10k copies/monthTotal CPC $.03290S&S CPC - (.012)Equip. CPC = .020...
MPS and Leasing:How to Prepare, Profit and Protect• Program via payment• Includes 18,000 total prints• Monthly payment at ...
MPS and Leasing:How to Prepare, Profit and Protect• Control– Equipment refresh – consistent add to contract• Less price sh...
MPS and Leasing:How to Prepare, Profit and Protect– Time related, non-cancelable agreement• Future S/S revenue is protecte...
Thank youHarry B. Hecht609-636-9893harryhecht@gmail.comwww.linkedin.com/in/harryhecht
Mps and leasing: How to Prepare, Profit and Protect
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Mps and leasing: How to Prepare, Profit and Protect

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Considerations on How to best manage and protect your Lease Portfolio when entering into MPS engagements.

Published in: Economy & Finance, Business
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Mps and leasing: How to Prepare, Profit and Protect

  1. 1. MPS and Leasing:How to Prepare, Profit and ProtectHarry B. Hecht
  2. 2. MPS and Leasing:How to Prepare, Profit and Protect• Where does leasing fit with MPS?• What are the challenges?• What are the objections?• Why is it important?• How can I PROFIT with leasing?• How and why does it PROTECT mycustomer base?
  3. 3. MPS and Leasing:How to Prepare, Profit and Protect• What is important to know?– 1st question to ask – “Who’s customer is it?”– Experience & reputation in MPS/bundledcontracts– System capabilities• Accuracy and Invoicing• Reporting and information access• Cash remittance and reconciliation– Frequency, it is your cash flow• Integration of system to system
  4. 4. MPS and Leasing:How to Prepare, Profit and Protect• Reduction in administrative expense– Cost of invoicing (print and postage)– Manual spreadsheet invoicing– Collection efforts (professional and focused)• Managed DOS = your Cash Flow• “Where there is mystery there is margin”• Program selling– True CPP Example
  5. 5. MPS and Leasing:How to Prepare, Profit and ProtectCPC @ 10k copies/monthTotal CPC $.03290S&S CPC - (.012)Equip. CPC = .02090Mo. Min. X 10,000Equip. Pmt = $209.00Rate Factor / .0287Funding = $7,282.23*36 mth lease termCPP @ 18k prints/monthCPP $.03290S&S CPP - (.015)Equip. CPP = .01790Mo. Min. X 18,000Equip. Pmt = $322.20Rate Factor / .0287Funding = $11,226.48$3,944.48 Additional GP Potential
  6. 6. MPS and Leasing:How to Prepare, Profit and Protect• Program via payment• Includes 18,000 total prints• Monthly payment at $592.20• Overages billed at $0.015– Or at $0.0329 (or somewhere in between)• It is all based on how you are selling it andthe style of program you offer.
  7. 7. MPS and Leasing:How to Prepare, Profit and Protect• Control– Equipment refresh – consistent add to contract• Less price shopping once a program is established– Automatic and set annual S/S escalations– Inclusion of client owned assets• More guaranteed clicks on contract• Clicks help drive potential for more equipment spread– Use of non-coterminous contract for equipmentadditions helps keep your lease rate lower, profithigher and keeps more flexibility in the contract
  8. 8. MPS and Leasing:How to Prepare, Profit and Protect– Time related, non-cancelable agreement• Future S/S revenue is protected– Competitor must deal with the whole contract (rent &S/S)• Competitor protection– You are notified if buy outs are requested, a sign ofcompetitive activity– All buy out quotes include all your contracted S/S– Use of non-coterminous terms helps keep your program /portfolio from being swept by competitors
  9. 9. Thank youHarry B. Hecht609-636-9893harryhecht@gmail.comwww.linkedin.com/in/harryhecht

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