Lease vs. Purchase

[bossman696 28]

I may be in the market for a Graphtec CE-6000 24" Cutter.  Since I am just a sole proprietor business type, I have always purchased equipment in the past.  I have since starting thinking I need to start building credit under the business name, but most companies seems to lean toward leasing verses traditional finance.  Filling out paper work, I have found that leases are much higher cost wise than traditional financing, but they are much easier to get.  What do you guys think?  Are the higher costs, worth the tax right off.  Either way I would have no down payment, but I have to jump through so many more hoops for financing.  

 

Is anyone leasing their equipment?  (I'm only looking at lease to own situations.)

[slice&dice 2,450]

This has been covered in extensive detail previously --

 

http://forum.uscutter.com/index.php?/topic/42124-lease-or-buy

 

and

 

 

http://forum.uscutter.com/index.php?/topic/41744-us-cutter-financing

[jaybyrd 3,770]

With a lease you can write off 100% of your payments. When you purchase you have to depreciate over time. This is the primary reason companies choose to lease beyond not having all their resources tied up in equipment.

[Dakotagrafx 7,297]

 isn't there a sec175 write off for the entire purchase can be written off in 1 year ?

[jaybyrd 3,770]

Hell I write everything off but if I ever get audited I may have some explaining to do. I'd say honestly to check with whoever does your taxes. I do my own since nobody wants to sign that paper saying they prepared them.

[Dakotagrafx 7,297]

I think I had it wrong it is sec 179   http://en.wikipedia.org/wiki/Section_179_depreciation_deduction but I am no tax expert either 

[bossman696 28]

The section 179 deduction is what I have normally done over the years.   I have always normally just charged it and paid it off.  I'm afraid I won't be as lucky with this purchase as I was when I first started.  I ordered a heat press, 24 SC cutter and a few supplies and paid for everything with my first four orders.  I think I may sell my Nikon D7000 and accessories and get the cash to buy the graphtec.  Leases just seem like to much of an expense.

 

Thanks for the links Slice.  Some one mentioned you may have been the person with issues with your SC cutter cutting wavy diagonal lines and a possible fix?  Is that correct?

[slice&dice 2,450]

Correct, the SC machine can be adjusted by removing the left-side cover (where the on/off switch is) and turning the set-screw to increase the tension slightly on the belt. That did the trick for me.

 

BTW, I am not convinced that a more expensive cutter is going to bring in more money to your business.

[bossman696 28]

Correct, the SC machine can be adjusted by removing the left-side cover (where the on/off switch is) and turning the set-screw to increase the tension slightly on the belt. That did the trick for me.

 

BTW, I am not convinced that a more expensive cutter is going to bring in more money to your business.

 

I will have to try that and see if it helps my issue.  Mine seems to be like the previous poster's where it is not alway present or noticeable.  The new cutter was more of a way to increase my quality and a result of that "I see, I want" mentality that I am sure has gotten a few of us in trouble.  I need a new cutting strip on my SC and maybe with the belt adjustment we can by pass the new toy for a while.  Thank you.

[jaybyrd 3,770]

It may not boost sales but it eliminates most of the cutter related issues people have thereby freeing up that time to work on other things such as design and sales. I personally have noticed a marked improvement in quality and have had a couple long term customers make comments about it.

[slice&dice 2,450]

Thousands of people all across the USA are using the budget cutters without issues.

[jaybyrd 3,770]

I don't know about the without issues part. I haven't heard anybody ever say that they don't have issues with any cutter budget or high end. You yourself have posted about fixing things with your cutters.

[bikemike 711]

I thought my off shore cutter was set up perfect.

Then I got a graphtec. Turns out it was far from perfect.

And I still tweek the graphtec now and then.

Sometimes you don't realize you have a problem.

[jaybyrd 3,770]

I didn't know how quiet they could be so I thought the noise was normal. Boy was I wrong.

[bikemike 711]

Copy that.

More than once I thought it quit for some reason just to find out I just couldnt hear it.

[Monkey 252]

Some of us just strive for producing better products, some are fine staying with the medium range

[bossman696 28]

Some of us just strive for producing better products, some are fine staying with the medium range

 

I want to produce a better product personally.  I think my issues come from expecting perfection.  I have been a commercial printer for 24 years and we routinely look for dot to dot registration.  I have totally control over the look and feel of my product and that is not always the case with cutting vinyl or heat pressing t-shirts.  I used to get heat transfers in from certain companies and the colors didn't line up, or they weren't consistent.  After trying several companies, with the same issues, I just assumed that was the nature of the game.  FMExpressions changed my mind on that, but that story is for a different post.

 

I am a stickler for quality, but I'm also a cheap skate, which causes problems on many fronts.  I price my items based on what I would pay and that gets me into trouble sometimes.  Especially when I want what I produce to be the best it could be!  So I put in more time than I should on projects to make them look great.  That is probably why I'm so busy.  I have learned slowly that you have to get paid what you are worth.  If that means losing a job here or there, so be it.  That was probably a customer that would never be loyal as they would always be looking for the best deal.

[slice&dice 2,450]

"Adjusting & tweaking settings" does not = "issues"

 

My products are 100% fine.

[jaybyrd 3,770]

When I buy a new car or whatever I don't feel like I should have to overhaul it out of the box. I wasn't referring to setting either but how many times have you posted about loose belts and screws either missing or in the wrong location. And cut quality is different the higher up you go. If you say it isn't then you have never used a higher end machine. Even USCUTTER spells out in the knowledge center and buyer guide that the higher you go the better they are.

[slice&dice 2,450]

"When I buy a new car or whatever I don't feel like I should have to overhaul it out of the box..."

 

Toyota just recalled 850,000 new cars due to SPIDERS.

http://www.scpr.org/programs/take-two/2013/10/21/34260/toyota-recalls-more-than-850-000-cars-due-to-spide/

 

USCUTTER sells budget cutters every day, they work fine, they provide users with a beneficial and profitable experience.

(By the way, I would venture to say that cut quality is also a factor of servo motors instead of stepper motors)

[jaybyrd 3,770]

The servo motors show themselves best on fine detail and noise level. My laserpoint 2 does pretty decent cuts but (there's always a but somewhere) it came to me with a damaged carriage that would not lift or lower the blade out of the box. I had to replace it before I could make 1 cut with it. But as I said even USCUTTER realizes the difference in quality and mentions this several times in the knowledge center. Some people just don't need that level of accuracy or reliability in a cutter and the lower end machines fill that niche very well. On the other hand the OP is in this for a business and most businesses strive to have the tools to do the jobs accurately and efficiently and this normally involves purchasing something higher end. Several of my friends have SC cutters and use them daily and because of that I have recommended them to others but many of these friends are already saving for graphtecs or rolands with the intent of keeping the SC's for backup machines.

[Monkey 252]

Yes even USCutter labels the SC as "Beginner" cutters. and Graphtec as "Pro" in their buyers guide.  Do I recommend the SC to someone when its their price point? Absolutely, mine has paid itself off numerous times. Is it capable of producing products like a Graphtec or similar? Absolutely not. Like i said before, some of us are interested in making and selling the best product possible. Im sure some feel their "Just fine" in what they produce, and have no urge to better what they offer.

[Dakotagrafx 7,297]

the value cutters get a job done - the pro cutters get it done more efficently - I made a lot of money with a value cutter but I never had one allow me to weed an object with any detail in one quick pull like I do with the graphtec.  some can - I never had that experience until I went pro.  it is about how much do you want to spend or put up with for what level of inner peace.


This design won a weeding contest shortly after we got our graphtec and installed a cleancut blade - not saying it isn't possible with a value but I can gurantee it would have been a lot more "tension" during the weeding process

[bikemike 711]

No disrespct, a $5 xacto will cut vinyl.

A $300 cutter will cut vinyl.

What would you want?

[slice&dice 2,450]

No disrespct, a $5 xacto will cut vinyl. A $300 cutter will cut vinyl. What would you want?

 

Not a valid comparison.

 

A computer-driven budget MH cutter is an appropriate unit to perform the same task as the more expensive Graphtec.

 

I challenge anyone to step back at 40 feet and look at a sign made with the MH and then look at one made with a Graphtec and determine which is which.

 

I do not play around with teensy-tinsy micro projects.

My job is to create and assemble SIGNS, with lettering on them.