How to... Refinance Mail Meter Leases for Profit11 Aug, 2009 By: Pat Evans imageSource
How to... Refinance Mail Meter Leases for Profit
With interest rates at historic lows and refinancing transactions at historic
highs, refinancing of mailing equipment could nationally translate into tens of
thousands or more customers per year saving money on their existing leased
The timing is perfect since the U.S. Postal Service decertified the bulk of
all postage meters over the last four years. This translates into a nationwide
customer base with certified meters and mail machines, which should work for
years to come without problems.
Simple Refinance Rules
The rules to refinance mailing equipment are simple: The firm has less than
two years left on its lease and does not need a larger more expensive postage
machine. The firm keeps its present postage machine and lowers its quarterly
lease payment. Mailing equipment customers who cannot determine the expiration
date of their existing lease can contact refinance firms to determine their
lease expiration date.
The present market conditions create an environment in which an estimated
500,000+ businesses that lease mail machines and want to cut their quarterly
costs would now listen to a dealer who can shave up to $3,000 off a customer’s
Similar to a refinance on a house, mailing machine customers can now save
money and keep their maintenance contracts with their existing vendor or look to
a dealer for service. Since there are no points or closing costs, customers can
refinance without cutting a down payment check.
This enables office equipment dealers of all types to enter a lucrative
leasing market utilizing their existing sales teams since no equipment
demonstrations are necessary. Refinance can be sold to a dealer’s existing
client base, and mentioned while prospecting for additional customers.
In today’s tough economy, a $3,000-$5,100 savings is monumental especially on
a machine which is utilized less than five minutes per day. Mailing machines are
a unique piece of equipment to lease because of their unique lack of use. Why?
They never show any age.
Let’s do the math
Mailing equipment vendors charge a tri-rate to customers for their postage
meters. If a firm mails out $300+ in postage per month then they are considered
a large mailer. $300 per month divided by .44 (cents postage) = 681 letters per
month divided by 95 letters per minute, which is the minimum speed for some of
the slowest auto model mail machines to = 7.18 minutes per month x 12 months x 5
years = 431minutes divided by 60 minutes per hour = 7.18 hours. The mail machine
has been turned on less than 8 hours over 5 years PLUS larger machines usually
have one key operator so there are less service calls.
Another unique fact about meter machines is that wishing to own one has few
benefits. A client might ask, “Why shouldn’t we buy a machine?” The answer is
- Operating budget vs capital budget…it’s not budgeted.
- You can NEVER own a postage meter! So why own the base underneath? The
base only flips envelopes to the right and spits out an occasional package
- A lease can take an estimated $18,000 of postage meter costs, hardware
and software maintenance, rate and update insurance and equipment insurance
and make it a small daily expense item. Owning the base does not mitigate
So how can a firm save money during this recession? Accounts Payable can
outsource its quarterly mail or shipping equipment payment and save up to 20%
while keeping its certified, dependable mailing equipment on site.
How can a dealer turn recession into opportunity? Jump on the refinance band
wagon and allow your present sales force to say, “We can save you up to 20% on
your quarterly postage machine lease payment,” & watch the profit roll in to
Simple Postage Meter FAQs (clients ask!)
Are Postage Meters and Mailing Systems the Same? A postage meter is a
mailing system that prints postage directly on the envelope (or on an adhesive
tape) for any type of mail — first, second, third or fourth class; airmail,
registered mail, special delivery, or other special services. A postage meter
consists of 3 parts: the meter, base, and scale. (Other “mailing systems” can
include larger devices to handle entire mailrooms automatically, i.e, sorting,
stamping, stacking, etc.)
What is a Meter? The meter is the critical part of your mailing
system. It prints the indicia and stores the postage.
What is a Base? The base is essentially an envelope handler, designed
to transport the item to be "franked," or stamped, through the meter. The four
main parts of a base include the feeder, sealer, stacker, and tape dispenser:
Feeder: A feeder guides envelopes through the meter. Although you can
get a low-end meter without a feeder, feeding a large mailing by hand is going
to be pretty tedious.
Sealer: A sealer moistens the envelope flap and closes it
Stacker: After mail is stamped, it must be cleared from the machine.
This requires a stacker. Low-end stackers are no more than a catch tray placed
at the edge of the meter and designed to hold metered pieces of mail. \
Tape dispenser: In some cases, it’s not possible to print an indicia
directly onto a mailing piece - like with a large package. In these cases,
strips of adhesive paper, called tape, are fed through the meter and affixed to
the package. The tape is stamped with the indicia or postage amount.
What is a Scale? A scale weighs letters or packages & if it has
current rates, tells you how much postage to apply to your mail piece.
Interfaced models automatically apply that amount when you put it through the
Who Sets Postage Rates? The USPS sets the rates and regulations we
How Would I Purchase New Postage? You don't need to go to the post
office for this. New postage can be downloaded directly into your postage meter
at the touch of a button through your vendor’s program. New postage can also be
charged to your credit card. There is no need for sending in manual checks and
waiting days for postage to be added to your account.
Can I Buy a Postage Meter? No, all postage meters, regardless of
manufacturer are rented, never owned. These postage meters are highly regulated
by the USPS® because they hold actual U.S. mint.
RiTREEV Corp. was founded by Patrick Evans who launched EVCOR Systems,
Inc, a mailing & shipping system integrator which sold for $60 million. At