Should Your Company Purchase Mailroom Equipment This Year?

questionToday, managers of business mailrooms sometimes wrestle with a dilemma: should the company consider purchasing or leasing new equipment for this busy department? Of course, legal requirements mandate leasing (not buying) postage meters. This topic concerns other important mail handling and processing tools available in the marketplace today, including sorting bins, mail carts, workstations, software, and packaging equipment.

The answer to the purchase-versus-lease conundrum varies from one business to another. The volume of mail, the availability of mailroom equipment, departmental budgets, tax considerations, company protocols, and a host of other factors may all enter into the decision making process. This brief article points out some of the pros and cons involved in purchasing these assets at mail equipment sales:

Disadvantages in Buying New Equipment For a Company Mailroom

A manager may discover reasons to postpone a mailroom equipment purchase. Sometimes businesses choose to rely upon leased mail processing, sorting, and distribution equipment instead. Some frequent reasons underlying this decision include:

  • A lack of familiarity with new mailroom products;
  • Unwillingness to expend funds acquiring these assets;
  • Concern about the reliability of new products;
  • Unverified maintenance parameters;
  • Software interoperability concerns.

Some Inherent Advantages in Purchasing Mailroom Equipment

Yet despite disadvantages involved in buying equipment for a mailroom, this activity also offers important benefits. It may enable a firm to take advantage of impressive cost savings over the long term. Just consider a few reasons to purchase mail sorting and processing equipment outright for your firm’s mailroom:

  • Access cutting-edge new technology;
  • Obtain attractive product discounts or incentives from sellers;
  • Acquire a re-saleable business asset;
  • Order ergonomic improvements to enhance employee comfort and safety;
  • Gain enhanced mail processing and distribution capabilities in the present;
  • Improve automation.

Seek Expert Advice

Before deciding whether or not to attend a sale, business managers may benefit by discussing the lease-versus-purchase issue in light of their own unique circumstances with a knowledgeable CPA. Mark Sterr, an experienced commercial banker, recently discussed issues of business equipment leasing versus purchasing equipment in an article posted online. His analysis suggests companies benefit by giving thoughtful consideration to the financial ramifications of these types of routine decisions. He recommends addressing issues of lease expense and depreciation expense with a Certified Public Accountant.