REPORT FOR ANALYTICAL CHEMISTS
lease periods, Varian will probably meet this demand through use of a pool of used equipment. This plan will eliminate the need for complete write-off during the period of the short term lease. Varian feels t h a t its experience in this t y p e of m a r keting is too limited to establish a rigid policy; its concept is to t r y to satisfy any reasonable customer demand t h a t arises.
Terms of Contracts Vary Widely Since the survey by the editors covered a wide variety of instrument manufacturers, with greatly different types of equipment, it is not surprising t h a t terms in various leasing agreements should v a r y considerably. Coleman, for example, uses noncancellable lease contracts but gives the customer the right to purchase
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ANALYTICAL CHEMISTRY
with a large percentage return of invested rentals. I n the case of General Electric x-ray equipment, the leasing agreement spells out: (a) length of agreement; (b) fixed fee provision plus provision for extra fee for use of equipment beyond the normal 8hour work d a y ; (c) specific description of equipment and service to be provided; (d) responsibility for transportation, installation, and removal costs; (e) responsibility for insurance and personal property tax costs; and (/) "option to purchase" clause. While Emil Greiner follows standard leasing procedures, each lease takes into consideration the selling price of the instrument and the customer's needs. I t s plan, called the Trinock Plan, provides terms of one to five years, no down p a y m e n t or deposits, option to purchase at expiration of lease at 10% of the original m a r k e t value, and renewal of lease at expiration with a reduced rental based on the depreciated value of the instrument. Emil Greiner not only leases its own instruments but also those of other manufacturers. Various types of leases are used by Jarrell-Ash. Most are complicated. I n general, however, the duration of the lease and the rental charges are sufficient to cover installation and selling costs. Perkin-Elmer leasing is handled on an exclusive basis by the Horton E q u i p m e n t Leasing Division of Advance Industries, Inc. The leases are for 3-year terms. Since the life of instruments is much longer t h a n this period, the lease provides rental renewal and purchase options. This allows the expense of an instrument to be largely written off during the lease period and purchased later with a modest capital outlay. R a t e s for renewals of leases are nominal after expiration of the first lease term. Leases include accessories as well as the basic instruments and, where desired, can include local sales and use taxes. Freight charges are the responsibility of the customer. Typical terms for a 3-year P - E lease a r e : monthly rental of $32 per thousand dollars of face of lease, and no down payment. After
