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Maintenance Contracts
I have had a maintenance contract for my Summasign D60 cutter for the last six years. This contract is renewed each year and is due for renewal again at an annual cost of 400 pounds.
I now effectively have a second cutter – a roland PC600 printer cutter (bought six months ago) – that I could use as a back up cutter should the Summasign fail (albeit not as fast or good a cutter as the summasign). A new Summasign costs about 2200 for the equivalent machine (complete with a 3 year warranty). I am tempted now to forego the maintenance contract and simply pay for any repairs or maintenance required in the future. I am worried of course that in the event of a breakdown-without a contract-I might not be able to get anyone to fix the machine.
The machine is now six years old, so has effectively been written off in terms of its residual value to the business.
Am I just being mean – or am I making business sense?
What do the rest of you do – Should I keep my contract going or not?