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Franking machines are expensive pieces of kit. If you are looking to buy from new, they start at £600 and can go up to £16,000. Although as a small business user you probably would not spend more than £3000.
Many manufacturers have rental and leasing facilities available. Leasing avoids having to pay out a large amount up front. The downside is that you don't always own the machine at the end, although some manufacturers will sell it to you at a cut price. You may not want to own the machine considering how much they devalue. With leasing or rental, you can often upgrade or downgrade if you have to. If you choose this option, compare the length of contracts to see if you are tied to a machine for a minimum period of time.
If you can afford the initial outlay, it is more cost-effective to buy the machine. Whichever option you choose, check whether the price includes installation, training and a warranty or service cover.
You also need to think about running costs. The Royal Mail requires all machines to be inspected at least once a year. Some modern machines can be checked remotely. The others have to be inspected on site by an approved supplier - who in practice will be the manufacturer as there are no independent suppliers. If yours falls into the second category, find out how much the inspection will be.
Additional long-term costs will include ink cartridges or rollers, labels, re-crediting transactions fees, insurance and the costs of changing the logo. With replacement ink cartridges costing up to £49 a time and 200 labels up to £20, the running costs can vary greatly between machines.
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