Copy / Service Inclusive Contracts
Copy inclusive contracts are used to show a cost reduction by misrepresenting your actual costs, they are calculated as follows.
If you have a machine that produces 100,000 pages per year, it will produce 300,000 pages in 3 years.
The salesman will take half the volume (150,000) and calculate the cost using the cost per copy (lets say 5p) - 150,000 X £0.05 = £7,500
The £7,500 will be added to the cost of the machine and then the lease will be calculated over 3 years.
This will then be presented as your quarterly payment.
Because the service volume will only last for 18 months but has been spread over 3 years it appears to show a saving.
But when the service volume runs out (in 18 months) you will still be paying the same quarterly cost PLUS service costs meaning that your quarterly costs increase substantially.
At the point of sale the salesman dos not tell you he has only included 50% of you actual service volume.