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The Ultimate New Guide to Buying or Renting a Franking Machine Feb 10

Franking machines are a minefield, they're not like your average piece of office equipment that you can buy off the shelf or second hand and start stamping your post.

When talking to a franking machine company representative there is a list of important points you need to cover as there are many hidden pitfalls. Also, always bear in mind most representatives are commission paid and have monthly targets to achieve. If they claim information that differs on this site always check direct with the company (numbers below) as when you realise all isn't what was promised the rep will have probably moved on and your stuck with it!!

Important questions to ask when talking to franking machine suppliers:

1. Is the company a Royal Mail approved independent supplier and maintainer of franking machines?
2. How much does the replacement ink cartridge cost?
3. How many impressions does the ink cartridge last with and without printing the company logo or return address? (Ask for evidence as this can vary dependent on who you're talking to!)
4. Does the ink cartridge time out and stop working within a certain period of time from when you install it in the machine?
5. Is there a charge for adding postage to the franking machine? If postage top ups are free, find out how many are free per annum and how much each top up would be thereafter.
6. Most Franking Machines are recredited down the phone line or fax line, find out how much the call cost would be as some use premium rate '090' numbers that are charged at up to £1.50 per minute. (Beware as the cost is not the only issue, many modern phone systems barr '090' numbers !!)
7. Is there a charge to update the machine or postal scale with new tariffs when the Royal Mail change their postage prices?
8. If they promise free Royal Mail tariff updates find out how many are included and how much each one is thereafter. (The Royal Mail have changed some prices twice since April 08 and by up to as many as three times in on one year recently!!!)
9. If you are signing a lease or rental agreement they usually all carry those annoying 'documentation fees' or 'administration fees' which would be payable with the first rental. Find out how much this would be, they can vary from £75.00 up to around £150.00!!
10. How much do the franking labels cost when franking onto larger items?
11. How much does the logo stamp or return address cost?
12. How much does the annual service and maintenance cover cost and does this cover all breakdowns, call outs parts and the annual Royal Mail inspection? Also check if its onsite maintenance or 'return to base' (This could leave you without a machine for a prolonged period of time!!).
13. Does the company install the equipment and train the customer free of charge or is it delivered in a box for you to sort out?

Four popular suppliers of franking machines in the UK; Neopost, Mailcoms, Pitney Bowes and FP (Francotyp Postalia).

All offer Royal Mail approved quality digital franking machines but come with various points to watch out for:

Neopost: - 01708 746000
Recrediting is done over the phone line and whilst there is no fee, their machines dial using a premium rate (090) number at £1.50 per minute. Their franking machine ink cartridges tend to be expensive and some time out after 12 months even if there is still some ink left!! The new range of 'IS' machines are all good machines, they all use the same ink cartridge but the machines are programmed to give different amounts of impressions dependent on the size of the franking machine. Some of their mid volume customers have reported an increase of ink cost when upgrading from equipment such as the IJ65 by up to as much as five times. Royal Mail rate updates are included in their fully comprehensive maintenance contract at one per year except the IJ25 which all changes are chargeable at at least £65.00 + vat. Rate changes thereafter the one per annum are charged at anywhere between £80.00 and £120.00 (bear in mind the Royal Mail have in the past changed prices twice since April 08 and as many as 3 times in one year!!). Rate changes can be very lucrative for some franking machine manufacturers / suppliers.

Mailcoms Ltd - 08450 530930
Mailcoms Ltd are a smaller family business but Royal Mail approved all the same. They try to be more transparent offering ALL free recrediting and All Royal Mail postage price change updates free of charge. Their range of franking machines at the high volume end (1000 items + per day) is limited but offer the best value for money in low to mid volume range. They're also the only company to offer free installation and training on all its range of franking machines.

Pitney Bowes: - 08705 252525
A good choice of digital inkjet franking machines starting with the DM50. Many customers have commented that Pitney Bowes customer service can be difficult to deal with. Ink cartridges can be expensive with one of the lowest amount of impressions per cartridge. On a plus point there is an array of compatible ink cartridges available for Pitney Bowes machines. For further information visit www.frankingink.com. Pitney Bowes charge for all recrediting/postage top ups From £6.00 up to £12.00. Some of their service contracts offer inclusive Royal Mail rate updates but comes at a premium. Watch out for their insurance cover when leasing known as 'PB Value Max'. This is extra cost insurance that your general office equipment insurance usually covers. Logos and external return addresses are usually charged extra each.

FP (Francotyp Postalia)
FP have a good simple basic range but their biggest let down is the cost of the ink cartridges. The entry level Mymail ink cartridge costs a whopping £148.00 for a few thousand impressions, that's an additional 5p per letter so any savings you thought you'd make using a franking machine would be swallowed up in ink cost alone. Their mid range Ultimail is a good machine but again expensive on the ink at £190.00 per replacement set. One good point is they offer one free recredit per month or 12 per annum included in their additional service contract. Be careful of this as each top up thereafter costs around £11.00.

Other points to note:

The advantages in leasing your franking machine are (1) you are avoiding having to pay out a large amount up front and (2) any repairs out of warranty are taken care of by the company. You can often upgrade/downgrade your franking machine in line with the size of your business and mailing requirements.

The disadvantage is that over the long term, leasing a franking machine can cost you more. At the end of the leasing period you don't always own the machine at the end. Also it is quite hard to sell a second-hand franking machine to anyone else apart from the supplier, who generally will not offer much. Don’t try to buy a second-hand franking machine.

Remember, when you are talking to the sales representative of the franking machine company, it is often possible to negotiate prices and terms. Compare franking machine leasing agreements between companies.

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