Common Traps With Managed Print Services
Things to watch out for when reviewing your Managed Print Contracts
Many organisations only discover the problems with their manage print service after they have been locked into a long-term agreement. A salespeople whips out a document at the end of a slick presentation and pushes for immediate signing, or a stressed team member who has a million things going on makes a quick decision that they will later regret.
Precision Peripherals Ltd has been selling, repairing and servicing printers since 1982 and have worked on behalf of manufacturers, blue chip organisations, FTSE 100 companies and resellers. Over the years we have been approached by organisations who have been very unhappy with their managed print services.
We thought that it would be useful to put together a resource bringing together all the traps buried deep within the small print of managed print contracts. This is not a definitive list so if you want to reach out with more examples please send an e-mail to sales@printer-service.co.uk and we will add to it.
It goes without saying that if you want to deal with an honest, family run business that doesn’t resort to the types of schemes below then please feel free to contact us about your managed print services.
Managed Print Services - Things to Avoid
Below is a list of the common clauses that are designed to catch people out.
Automatic price rises.
Every contract tends to have a clause that raises prices by a certain percentage each year. This is cover the increases that manufacturers put on the cost of their toners and spare parts. We recently worked with a company who had a contract with annual increases of over 15%.
Automatic Contract Renewal
Some contracts have a clause whereby they roll over into another 3 or 5 year term if they aren’t properly cancelled within a short renewal window. This can catch companies unaware and leave them overpaying for equipment that is no longer suitable for their business or having to pay to exit the agreement.
We are contacted all the time by companies who are unhappy with their existing provider but are locked into a long-term agreement.
Minimum Print Volumes
Like other companies, our contract include a minimum print volume to pay for the costs of monitoring the equipment. However, these clauses should not be used to profiteer. If you are not using the printer, but are still getting invoices for hundreds of pounds each month then something has gone wrong.
Hidden Clauses and Fees
Watch out for costs that you may think would be included in the service but actually aren’t. For example, we do not charge for shipping supplies.
Refinancing
If you are on an existing lease then refinancing may be a good way to exit a previous contract. However, it is really important to be absolutely sure that it is done correctly so that you are don’t end up overpaying or end up being responsible for paying off two leases.
Insurance on Finance Leasing
Not so much as a scam, but if you lease a copier then check to see whether there is an insurance clause. Some finance companies charge a small premium to insure the equipment. This may not be needed if your insurance policy covers the equipment.
Bundling Service and the Equipment into One Agreement
If you are approached to sign a finance lease agreement which includes the servicing and supplies over a 3 or 5 year term then think very carefully. Although it may sound compelling to pay a fixed amount per month, you need to consider that if anything happened to the service provider then you would still have to pay the monthly instalments to the finance company plus find the money to keep the equipment running.
We worked with a primary school who was approached by a company who offered them a five year finance agreement which included to take over their existing lease, provide them with two high end printers and supply all their consumables for five years. We reviewed their existing agreement and couldn’t see any benefit to them upgrading their equipment so advised them not to sign. Luckily they took our advice as the company who quoted them went into administration two months later.
Exclusions
Our brake-fix printer contracts excludes any consumable items. So for example, mobile printers these would include the batteries and the printheads and platens for industrial label printers. It’s just worth noting which parts are or aren’t excluded from the agreement or if there are any extra charges.
Call Out Caps
Some companies cap the number of callouts that you are allowed each year. Having a fair use clause is always reasonable but make sure that it is not abused.
Pay Monthly Model
On many of the popular online printer retail stores there are options to sign up to schemes which promise huge discounts if you sign up to one of their pay monthly schemes for toners and inks. The downside to these schemes are the same as the minimum print volume - you may end up paying for copies you may not need. Furthermore, if you go over the allowance then you are charged for extras.
Managed Print Services with Precision Peripherals
We guarantee that our managed print services contracts:
Contain clear pricing with no hidden charges.
Have sensible minimum volume charges without profiteering.
Are transparent agreements with no unexpected renewals.
Provide ongoing support from experienced engineers.
If you are reviewing your current agreement or considering a new provider, we can help. We would also be happy to review any potential contact that you have been offered.
Contact our friendly team to arrange a free print assessment and receive clear, practical advice based on your actual requirements.