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The Real Costs associated with different types of All-Inclusive Printer Contracts

Most print vendors today offer some type of all-inclusive printer contract, commonly referred to as Managed Print Services (MPS).

There are many variations of managed print services agreements ranging from contracts that have the hardware, service, and consumables included based on a single cost per page contracted rate. Other agreement types have a minimum number of contracted monthly prints included and separate hardware rental costs.

The vast array of managed print services contract options tends to leave customers somewhat confused as to what is actually included in the base monthly charge and what they would need to pay the vendor when printing over or under the contracted print volumes.

Below are some commonly asked questions on managed print services contracts:

 

MPS contracts based on an all-inclusive flat rate per page billing model

 

Why is my print rate per page for colour and black prints so high?

These contracts all have costs associated with hardware, finance agreement & servicing rolled up into one single, inflated cost per print rate.

 

What is the financial disadvantage of printing under the contracted minimum volumes?

The client would be required to pay in full amount for all contracted prints irrespective if the prints are actually produced.

 

What is the financial disadvantage of printing over the contracted minimum volumes?

The client would be required to pay the full contracted price of the over inflated per page rate for every print above the minimum page volume.

 

What is the financial disadvantage of printing over the contracted minimum volumes in colour only?

The client would be required to pay the full contracted price of the over inflated per page rate for every print above the minimum page volume, plus the minimum contracted price for black irrespective if the prints are actually produced.

 

Are there any financial benefits to our business staying on an MPS flat rate per page contract?

No, as the client is required to pay the full contracted price even if the print minimums are not produced and then pay the full over inflated rate per page for all prints produced above the minimum contracted print volumes.

 

Are there any administrative benefits to our business staying on an MPS flat rate per page contract?

The only benefits of these agreements would be receiving one invoice per billing cycle.

 

My vendor has mentioned that once we achieve the total contracted volumes our agreement has finished.

Yes, this may be case case but all that has been achieved is the client has paid the vendor the full contracted term value in a quicker time frame.

 

MPS agreements based on minimum print volumes + hardware rental

 

Why is my print rate per page for colour and black prints much higher than a standard service agreement?

These contracts generally have a higher cost per page rate than a standard service agreement as the vendor offsets the total contacted cost to give the client the misconception that they are paying a reduced hardware rental cost.

 

What is the financial disadvantage of printing under the contracted minimum volumes?

The client would be required to pay the full amount of all contracted prints, irrespective if the prints are actually produced.

 

What is the financial disadvantage of printing over the contracted minimum volumes?

The client would be required to pay the full contracted over inflated per page rate for every print above the minimum page volume.

 

What is the financial disadvantage of printing over the contracted minimum volumes in colour only?

The client would be required to pay the full contracted over inflated per page colour rate for every print above the minimum page volume, plus the minimum contracted price for black irrespective if the prints are actually produced.

 

Are there any actual benefits to staying on an MPS minimum print volume + hardware rental contract?

There are absolutely no customer benefits with this type of agreement as the contract is locked in for the agreed term irrespective of the total print volumes produced. Clients still need to pay every billing cycle for the hardware rental and the included prints irrespective if the prints are actually produced. Additionally, if any prints are produced in either colour or black above the contracted volumes, the vendor will charge the full rate per page for all prints above the included page volumes.

 

Fixed Cost per Seat Printing Agreement (PrintaaS)

 

How can a Fixed Cost per Seat Printing Agreement actually reduce our costs?

This agreement is based on a fixed monthly cost per seat and not on a variable print usage basis.

 

How can a Fixed Cost per Seat Printing Agreement reduce our paper costs?

As the user is required to release their print jobs at the machine, re-prints and those last minute changes can be avoided as the unwanted print jobs can now be deleted from the print queue rather than printed. Re-prints or duplicate prints account for approximately 15% of all paper usage.

 

How can a Fixed Cost per Seat Printing Agreement reduce our print usage?

Our advanced software systems are able to delete jobs that are not printed after a predetermined time frame.

The days of print wastage and having a tray full of unclaimed prints next to the machine are over.

 

Will we receive an excess printing invoice if our print volume increases?

Our agreement has the built-in flexibility to allow for a 10% increase or decrease in print volumes averaged over a 6 month period before any variation is required.

 

Will we receive an increased invoice price if our staff numbers increase?

Our agreement has the built-in flexibility to allow for a 10% increase or decrease to staff numbers before any variation is required.