No Payout past End-Of-Life

Nothing amazes us anymore, but this example came close.

A Building company in Brisbane, QLD (Australia) had been with a local print dealer for many years, through many agreements and variations. By the time we took a look at the resulting agreement, we found that all equipment on the agreement with the exception of two photocopiers was more than 5 years old. Much of the agreement was having service issues which were being poorly responded to, hence we were called in to take a look. What we found was that over the last few years, multiple variations to the agreement had been signed to add or delete a single piece of equipment, whilst each time the agreement term had been extended to 5 years. What resulted was a payout in excess of $2 million, on problematic equipment that almost belonged in a museum.

FairPrint agreements explicitly prohibit payouts for equipment that is past its serviceable life. This means that each time you negotiate with your supplier to add/delete equipment, the term doesn’t get longer and longer for the original equipment. This way when you remove the original device when the time comes, there’s no payout to refinance or other hidden surprises.