Canon Colorado service agreement price increase issue

[Brian Tickenoff]

We purchased a Colorado-M5 last year and in our sale proposal, under the service plan section, it says "Standard maint, 1 year, $607/mo after the first year." Pretty clear and straightforward, yeah?
Well, after a year of having it, Canon sent me the agreement to get that Service Agreement and it now says $736. That's a 21.25% increase from what they quoted me. $129 more each month.
I've chatted with the guy who sent me the service contract, my sales guy & his boss. So far, they are all saying the same thing: "Japan is really firm on this. Since you didn't agree to that price at the time of sale, the increase stands. They won't budge."

This does not seem reasonable to me at all. Have any of you other Colorado owners run into anything like this? Any suggestions on how to move forward besides just eating the cost?

 

[balstestrat]

It's quite usual to have lower price if you pre-agree or increased if you take it later.

 

[Pauly]

We purchased a Colorado-M5 last year and in our sale proposal, under the service plan section, it says "Standard maint, 1 year, $607/mo after the first year." Pretty clear and straightforward, yeah?
Well, after a year of having it, Canon sent me the agreement to get that Service Agreement and it now says $736. That's a 21.25% increase from what they quoted me. $129 more each month.
I've chatted with the guy who sent me the service contract, my sales guy & his boss. So far, they are all saying the same thing: "Japan is really firm on this. Since you didn't agree to that price at the time of sale, the increase stands. They won't budge."

This does not seem reasonable to me at all. Have any of you other Colorado owners run into anything like this? Any suggestions on how to move forward besides just eating the cost?

Im not going to be soft on you for this.

1. yes its normal for rates to change. you locked in a deal a year ago. You also had the option to lock in upto a 5 year contact.
2. Service contacts for older machines will also cost more.
3. A service contract is a no brainer, regardless of the price. It's basically insurance for your machine. IF it breaks they come and fix it. You happily pay car insurance when 90% of the time nothing happens to it and cars cost you money, but questions are always thrown around when it comes to maintenance contacts on machines that create an income.

My suggestion. Lock in a 2 or more year contract if available. Will the price go up? it will certainly not go down that's for sure.

 

[victor bogdanov]

We purchased a Colorado-M5 last year and in our sale proposal, under the service plan section, it says "Standard maint, 1 year, $607/mo after the first year." Pretty clear and straightforward, yeah?
Well, after a year of having it, Canon sent me the agreement to get that Service Agreement and it now says $736. That's a 21.25% increase from what they quoted me. $129 more each month.
I've chatted with the guy who sent me the service contract, my sales guy & his boss. So far, they are all saying the same thing: "Japan is really firm on this. Since you didn't agree to that price at the time of sale, the increase stands. They won't budge."

This does not seem reasonable to me at all. Have any of you other Colorado owners run into anything like this? Any suggestions on how to move forward besides just eating the cost?

This is what I learned/observed: The total service contract will cost the same over the life of the machine no matter when you buy it. The later you buy it, the higher the monthly cost will be, It like you are paying for all 60 months no matter what month you start on.

I didn't buy the service contract on year one because I figured why do it when there is warranty and then when I bough on year too I was in the same situation as you

 

[Brian Tickenoff]

Im not going to be soft on you for this.

1. yes its normal for rates to change. you locked in a deal a year ago. You also had the option to lock in upto a 5 year contact.
2. Service contacts for older machines will also cost more.
3. A service contract is a no brainer, regardless of the price. It's basically insurance for your machine. IF it breaks they come and fix it. You happily pay car insurance when 90% of the time nothing happens to it and cars cost you money, but questions are always thrown around when it comes to maintenance contacts on machines that create an income.

My suggestion. Lock in a 2 or more year contract if available. Will the price go up? it will certainly not go down that's for sure.

1) Yes, rates change. We were not told, nor is it in any paperwork that we had to get the contract then and there. We were told that we could get it after the 1st year.
2) Not relevant. The unit is 1 year old.
3) We do the agreements for all our equipment for that exact reason.
My guess is you didn't read the part where I said that the sales proposal said specifically "Standard maint, 1 year, $607/mo after the first year."

 

[TheAngryCanadian]

Seems to be par for the course. EVERYTHING is increasing. Going to the grocery store etc. All our materials will be going up in price this year. July my distributor hit me with a 20% increase on General Formulations materials. 3M prices are now 5% increase twice a year instead of 3% . We have a new approach in the shop and that is to make sure we take time to do each job properly. Double checking each other work to cut on redoing anything

 

[Pauly]

1) Yes, rates change. We were not told, nor is it in any paperwork that we had to get the contract then and there. We were told that we could get it after the 1st year.
2) Not relevant. The unit is 1 year old.
3) We do the agreements for all our equipment for that exact reason.
My guess is you didn't read the part where I said that the sales proposal said specifically "Standard maint, 1 year, $607/mo after the first year."

1. No one is told the rates will change, its usually a question one would ask, but not even they would know. however they would tell you over x amount of years or SQM the price would increase.
2. it is relevant. If you have a higher volume machine, they can deem its a high volume machine and put you on a higher rate as more replacement parts are expected.
3. good!
and your guess is incorrect. Everyone gets the 1st year free. when you buy it, buying the extra year means you're on a 2 year contract. +4 is 5 years. etc.

as an FYI, i have a 1650 deemed as high volume and a new M5.
Both machines we bought the full 5 year contracts and negotiated a deal.

 

[White Haus]

Seems to be par for the course. EVERYTHING is increasing. Going to the grocery store etc. All our materials will be going up in price this year. July my distributor hit me with a 20% increase on General Formulations materials. 3M prices are now 5% increase twice a year instead of 3% . We have a new approach in the shop and that is to make sure we take time to do each job properly. Double checking each other work to cut on redoing anything

Was that 20% GF increase across the board?? I haven't seen this in Canada, will have to look into this.

 

[TheAngryCanadian]

Yes across the board. Last increase was 3-4 years ago ??? But 20% all at once . Fortunately what was use the increase is only $15 per roll.

 

[balstestrat]

Yes across the board. Last increase was 3-4 years ago ??? But 20% all at once . Fortunately what was use the increase is only $15 per roll.

Wow 75$ rolls, that's cheap!