The introduction of Minolta South Africa's risk-free concept of outsourcing office automation equipment aims to counteract some of the pitfalls commonly encountered when renting or buying equipment.

Minolta South Africa MD, Alan Griffith, explains: "Minolta South Africa has introduced a solution that allows an organisation to use state of the art technology without the fear of owning it. The emphasis has moved from hardware sales to client-specific print solutions."

Griffiths advises organisations that are considering purchasing or renting office automation devices to establish the trading history and financial credibility of the supplier and keep the following points in mind:

The rental contract: Check the rental contract thoroughly. Too many organisations have had their fingers burned with escalation clauses in rental contracts which result in an inflated settlement when it becomes necessary to upgrade equipment.

Rolling rentals: Establish exactly how the supplier envisages dealing with any outstanding monies due to the financial institution on current equipment. The outstanding amount is sometimes added to the purchase price of new equipment resulting in the refinancing and taxing of previous finance charges, capital and value added tax.

Extended terms: Check that the proposal contains rental figures, interest rate charges and the period that the contract will extend for. Where no transparency exists as to what the actual value of the equipment is or what the payout is to the supplier by the financial institution - an inflated interest rate may have been used in the supplier's calculation.

Minimum billing: Avoid exorbitant minimum billing contracts that do not take the organisations unique requirements into account.

Service contracts: Read the fine print in service agreements. Is the photoconductor drum and toner included in the deal? If not, these could push the cost per print up by 1,7 cents.

Under spec equipment: Avoid taking on 'under-spec' equipment, which is offered at what appears to be a cheaper price than the competitors' products. This equipment may be working in excess of its capabilities and could require upgrading prior to the end of the financial contract.

Double discounting: Only sign one credit application even if the sales person suggests offering the deal to several banks to get a better interest rate. Should two or more institutions approve the finance, the equipment supplied could be discounted to more than one bank and a debt incurred for double the value of the contract.

Outdated or obsolete equipment: Ensure that the equipment proposed is guaranteed for the duration of the rental contract and has not been discontinued.

Copy charges: Ensure that suppliers who quote cheap copy charges do not have frequent escalation interval reviews built into the contract which allows for a lower starting point, but a far higher finishing point.

For further information contact Linden Kerwin, Minolta South Africa, 011 249 4000.