Renting Copiers, Fax Machines, and Printers Part VI
By Larry McGinnis

Part Six: RENTING FAX MACHINES
 

Renting fax machines can be viewed from two different angles: renting fax machines as a supplement to renting copiers or renting faxes as a business in and of itself. Renting fax machines is a perfect adjunct to the copier rental business. A business looking for a copier often needs a fax as well. Temporary installations, such as construction sites, also need them. It’s rare that an office doesn’t have or need a fax. So, how do you make money on renting them?

In general, fax machines can be grouped in three categories--thermal, ribbon and ink jet, and laser fax machines.

Thermal fax machines

The thermal fax machine uses a roll of thermal-sensitive paper and has basic features such as limited memory and one-touch dialing capabilities. I rent all thermal fax machines for $19 per month. I include a full roll of paper with the machine and a copy of the user manual, never the original of the user manual. I include and provide all service on the equipment as required. Paper, except for the first roll, is not included. I always deliver a fax machine with the date, time, and terminal identification preprogrammed into the machine whenever possible. As with copiers, I require the first and the last month’s basic rental payments in advance. I include a delivery and setup charge of $19 with each rental. However, I don’t charge a delivery charge if the fax rental is included with a copier rental.

RULE #7: NEVER ALLOW A CUSTOMER TO PICK UP THE FAX RENTAL. ALWAYS DELIVER IT.

Many rentals are generated by people needing a fax temporarily while they’re waiting for repairs on their fax machine. This type of rental is short term. But, as I’ll cover in a later article on short-term rentals, short rentals can be quite profitable.

Ribbon and ink jet fax machines

These fax machines are intermediate, moderate volume fax machines. They cost more and require more service. I generally charge $29 per month. I require the first and the last month’s rental payment and a $19 installation fee up front. Supplies--including paper, ribbons, or ink cartridges--are not included in the basic rental and must be purchased separately. I always start the customer off with fresh supplies and a copy of the user manual (again, never the original). It usually takes longer to recoup the cost of ribbon, ink jet, and laser fax machines than it does to recover the cost of thermal fax machines. However, the customer usually rents the equipment longer.

Laser fax machines

The market is very different in this machine category compared with the other categories of fax machines. Apply all the rules of copier rentals to this market. Buy used when you can, and look for equipment that you trust. Premium-quality equipment is still expensive. I suggest you rent this type of equipment to existing customers with whom you’ve had a good track record. Cost recovery is slow, so don't over extend the number of installations in this market. Look for factory-remanufactured returns, and check with service organizations for unclaimed machines; you can pick up some good buys if you’re willing to work at it.

I rent laser fax machines for $49 per month and require the first and the last basic rental payments in advance. I charge $29 for installation. Paper and print units are not included. I start the customer out with fresh supplies and preprogram the equipment for their needs. All service is included, and I include a copy of the user manual with each installation.

Renting fax machines only

I know of two separate companies that rent fax machines only; they don't rent copiers at all. Both businesses are small, but very profitable. Service on fax machines is low, and the machines are light and easily moved from installation to installation. Often when a serious problem comes up, it’s easy to switch out machines and repair the equipment at your own leisure.

The only basic difference in fax-only rental business versus copier, fax, and printer business is the way the business is promoted. I’ve never run a fax-only rental business, but I’m told that the fax rental business is based on customers who need to get their equipment repaired. Most fax repair centers don’t have loaners. A smart rental operator will bring a better machine for the customer to use and often will replace the machine being repaired with his own at a better price than being rented for the short term.

One method of promotion I’ve seen is to run an ad in the newspaper offering a plain-paper fax rental at a good monthly rate. I’ve heard that if you run a small display ad every two weeks, alternating it in the sports section and in the business section, you can bring in enough business to keep a one-person operation busy and making a nice profit.

As with any profession, it’s important that you become the expert in fax machines. Knowledge is power, and you want to be the person the customer will call with a question about fax machines. Do as much of the programming as you can, and teach the user how to use the machine to his best advantage. Remember, it’s hard to replace a machine that has 200 of your most important fax numbers programmed into it.

------------------------------------------------------------------------------------------------------------------------------------

Larry McGinnis brings over 30 years of experience to the office machine business. His company, TEC-AID, markets a service department management program called ServiceTrak and a sales aid program called SalesBuilder Plus. He can be reached by calling 866/983-2243 or check out his Website at tec-aid.com.