Franking Machine Rental
If It's Good for Frank...
Franking machines print postage directly onto mailings, meaning items can be sent in the post straight away, thus negating the need visit the Post Office to buy stamps.
Furthermore, because Royal Mail currently offers discounts on all franked mail, with each item of post receiving at least a 5 pence reduction from standard prices, naturally this is all good news for businesses who wish to manage their sometimes considerable volumes of outgoing mail whilst keeping costs to a minimum.
How do companies could go about franking machine rental and are there any additional benefits which come with such an agreement?
How to Go About Renting a Franking Machine
There are numerous companies that will offer to rent a you franking machine (and certain other services) for a fixed monthly fee. A good place to start your search is by checking out the Royal Mail website as all suppliers and their machines must be Royal Mail approved.
Yet in spite of the plethora of companies that will offer rental contracts for franking machines, it is important to choose the correct one. If it is the first time you are using a machine and are unsure how beneficial it will be, look for a short term lease. This may be more expensive initially, but it is better than paying a monthly fee for a long period for a machine you barely use.
However, most companies should find their franking machine is used frequently, in which case it is just as vital to shop around to secure the best deal. Look for packages that include free upgrades to newer models. Also ensure that a maintenance contract is included as these can prove expensive when purchased alone.
The majority of leasing companies will offer accessories such as ink cartridges, so negotiate to get these items at a reduce rate. Do not sign a contract that is over 24 months unless it contains a clause allowing your machine to be upgraded in this time. You do not want to be stuck with a franking machine for this long when a newer, more efficient model may be available.
The Benefits of Renting a Franking Machine, Costs & Prices
Prices vary depending on the type of machine you wish to rent and how much you intend to use it. However, although basic models start from as little as £20 a month, the newest models can cost over £100.
Rental agreements also tend to last for a set period as opposed to running on a rolling monthly contract, therefore companies usually have to agree to rent the machine for at least 12 months. Still, there are numerous benefits to signing such a lease. Extras such as free ink cartridges and a maintenance plan are often included, with the more expensive lease agreements often offering a limited amount of free postage.
Why Not Just Buy a Franking Machine?
Many companies may have the budget to buy their franking machine outright. Franking machines start from around £300 and can cost as much as £15,000. However, once a company has made such a large investment, they may be less willing to replace it. This means the company often fails to upgrade to a newer model which may be more beneficial to their company in the future.
On the other hand, businesses who choose to rent can upgrade - often free of charge - when their current leasing agreement expires. Similarly, while companies who purchase their machines also have to consider buying a separate maintenance contract, this is, of course, unnecessary for those who rent.
In a Nutshell
Franking machines are so popular because they offer discounted rates on postal prices. Whilst a 5 pence saving on an item of post may not seem much, companies can send out thousands of letters a month so the savings add up to an impressive figure.
Franking machine rental is common across the UK because it is the easiest and most cost effective way of having use of a machine. The leasing packages offered by lenders are good and often include extras to entice customers. Once a leasing contract expires, the new agreement is likely to be competitive as the lender will want to keep your custom.
Of course, some companies may prefer to buy their own franking machine as they think it will save money in the long run. However, this is unlikely to be the case when you consider that the franking machine may become outdated within a couple of years.