Cash/Time Material

Maintenance Agreements

Rental Agreements

Rental Plus Maintenance

Master Rental Agreement (M.R.A.)

Copy Service Plan (C.S.P.)

General

 

 

CASH/TIME & MATERIAL

Clients may purchase their equipment through Gestetner on a cash basis, or by using their own finance sources. When purchasing equipment in this way a "No Maintenace Required" agreement may be signed. Services and repairs are then paid for in full as and when services are carriewd out on the equipment.

While this contract provides the advantage that services are only paid for when cost are incurred, replacement parts, time and travel costs can be very expensive thus providing no cost advantages over the life of the equipment.

MAINTENANCE AGREEMENTS

Such agreements may be signed by clients when purchasing equipment for cash, using it's own finance sources, renting through Gestetner or outside facilities arranged by Gestetner.

Maintenance agreements cover most costs incurred on the equipment over the life of the rental agreement or for as long as the client wishes to remain on an agreement if purchased for cash.

Charges for copiers and copy duplicators are based on usage, i.e. the number of copies/prints produced. Agreements may include or exclude toner/ink usage. Agreements including toner/ink usage will be more expensive than those excluding toner/ink. Gestetner staff will contact clients on a periodic basis to obtain the meter readings for billing purposes.

For facsimile, velobind and other non-copy based equipment, the agreement will be based on a fixed periodic charge. The period may be monthly, quarterly or other as desired by the client. Maintenance agreements for this type of equipment will not include consumables such as toners or facsimile machines.

As a general guideline the agreement covers all internal components of the equipment and the services incurred in the replacement of those parts. The agreement will not cover external parts as these do not break down during normal usage.

RENTAL AGREEMENTS

Most clients do not purchase their office equipment outright. The reasons are many fold and include: improved cashflow, avoidance of capital purchases, improved taxation benefits and reduced administration costs. Office equipment rental provides these benefits as the rental becomes an operating expense being allowed for tax purposes.

For the agreement to be allowed for tax purposes, certain requirements must be met, the most significant being that the ownership of the equipment may not pass to the client at the end of the rental period. The rental is payable for the full period of the agreement regardless of whether the equipment is used or not. A maintenance agreement will be a separate agreement to the main rental agreement.

Gestetner offers a rental option financed by the company directly or through third party finance houses. The principles remain the same and the client will be contracted to pay a monthly rental whilst Gestetner contracts to supply equipment in working order at the beginning of the agreement.

Agreements may be signed for a fixed monthly amount throughout the life of the agreement, linked to the prime interest rate or may escalate by a fixed percentage annually. Escalating agreements are common throughout the office automation industry.

RENTAL PLUS MAINTENANCE

This agreement combines points mentioned in Maintenance Agreements and Rental Agreements and is the most usual form of agreement. The client has the advantage of improved cash flow on the rental agreement and the security of a maintenance agreement for ad hoc services and major repairs. In terms of the maintenance agreement Gestetner will be obligated to keep the equipment in good working order throughout the life of the rental agreement.

MASTER RENTAL AGREEMENT (MRA)

Gestetner offers a Master Rental Agreement (MRA) facility. The principles are the same as described in Rental Agreements. One MRA is signed agreeing to the terms and conditions of the agreement. Machines are added to this agreement as a clients needs increase. The client signs an addendum to the MRA with each addendum carrying it's own life span.

This type of rental is particularly useful for large clients whose circumstances are constantly changing. Equipment is received on the basis of the addenda without the need to negotiate many separate agreements.

COPY SERVICE PLAN (C.S.P)

Gestetner offers a unique product known as the Copy Service Plan (CSP). This product is based on the philosophy that the client wants what the equipment is capable of producing, copies or prints, not the equipment itself. The client contracts to pay for a specified minimum number of copies per contractual period, in turn, Gestetner contracts that the client shall be able to make those copies unhindered. Thus it is Gestetner's obligation to ensure the equipment is kept in good working order. Equipment is insured for loss through fire, theft or accidental damage, excluding negligence, in order to ensure that the client can continue making copies.

The minimum contractual volume will depend upon a client's circumstances and needs. The significance of the CSP is its flexibility and the ease with which an agreement may be changed or varied. A variation may be signed to add or remove equipment, to change the minimum volume or the cost per copy to be charged.

A client's ongoing changing needs and environment makes this product especially suitable and a worthwhile option for further investigation.

GENERAL

Over and above the standard agreements mentioned here, Gestetner can tailor agreements to suit specialized circumstances. Many of our clients have taken this option when standard agreements have not been suitable.

The philosophy of the Contracts Department is to find ways of meeting all clients' circumstances and to create solutions to the client's varying situations. To this end, the contracts department has a code of conduct that ensures all agreements can be adhered to for the full duration of the agreement and further, that it falls within the guidelines of good business practice.