What Should be Included and/or Excluded From a Managed Print Services Agreement?

This is a great question and one that we get asked a lot. The answer is simple; what will it take to get the deal; what is the customer looking for and how can you move the engagement forward with the minimal objections. So the answer really depends on the circumstances. We are seeing all kinds of proposals being put forth on cost per device (CPD) programs. Each are varied in their approach. Some seek to offer all parts and labor bundled into cartridge purchases, but will then exclude accessory items such as sheet feeder and scanner repairs, for example. Other CPD programs set a fixed monthly fee for parts and labor with only toner being excluded from the CPD rate. Some use a “kill trees” model and offer all toner needed at a fixed monthly fee, excluding all repair labor and/or parts. Under a cost per page (CPP) model, you also have the flexibility to offer a toner only CPP program or a service only CPP program. This may come into play where the customer is currently under a toner or maintenance contract but is looking to engage your services for all the benefits of remote management, asset tracking, over and under utilization, right sizing, and full reporting capabilities.

That being said, under a CPP, it’s much more common to see toner, service, parts and labor included under the program. Exclusions are typically tied to accessories, add‐ons, jet direct cards, and employee neglect. Many CPP programs will even factor in a technology refresh program by charging a slightly higher per page rate and then phasing in either refurbished or new equipment over the life of the agreement. This is a very effective way to demonstrate that under a managed Print Services program, your customer will never need to purchase any additional equipment (except for expansion) in support of their current print environment.

When Engaging On A Managed Print Services Program, Is It Better To Install The DCA Before Equipment Tagging?

Typically it will make a lot more sense to first install your DCA (Data Collection Agent) prior to any equipment tagging. This will give you a much clearer picture of the number of devices and locations, serial numbers, etc., and you’ll be in a better position to go to the customer facility and appropriately tag and inspect the devices to be covered.

Are you installing software DCA or a network appliance based DCA (hardware DCA solution); much of that depends on the security concerns of the end-user IT department. Provide options and flexibility that meets customer needs and expectations.

Obviously, if the engagement process requires an inspection of the existing equipment prior to moving forward, first installing your DCA may not be an option; but I would certainly be pushing hard for this. When possible, make that part of your engagement process. Ask for the DCA installation to:

1- Immediately provide them with data on number of devices, device locations, usage, and current service needs

2- Allow you to perform the initial equipment inspection and evaluation more efficiently.

Get your DCA installed as quickly as you can in the sales cycle. Once installed, you’ll be in a much better position to demonstrate your value. Make it real and meaningful; highlight your capabilities early in the process. Once they see value in your solution, they will be more likely to implement at some level.

When Would You Implement A Managed Print Services Pilot Program?

For many customers, moving forward with any business solution requires considerable research, and is often met with hesitation. This is the best time to offer up the concept of moving forward with a “Pilot Program.” We have found that a 90‐day “Pilot Program” is a valuable approach to building a long‐term print management partnership. First, it affords your customer or prospect the opportunity to implement the program with minimal financial exposure or contractual commitment. Second, it allows them to evaluate and experience all aspects, as well as the overall efficiencies of your Managed Print Services Solution ‐ a “Try before you buy!” opportunity.

Getting Started:

At the commencement of a “Pilot Program”, all parties will determine which print devices are to be included. An inspection of the print devices and the tagging of those devices should be the next step in order to identify the physical locations and condition of all equipment that will be included in the program. The installation of a DCA is an important step in automating the process and demonstrating the value of your solution. Then, for 90‐days, your customer/prospect will be able to experience the benefits of your Print Management solution. Feel free to contact me directly (214-292- 2940) to discuss this approach in greater detail.

Selecting the Right Managed Print Services Solution - Part Seven

This series discusses some of the key factors in selecting the right MPS solution for your organization.  As an independent, time is precious.  Having fewer resources than national service organizations and the OEM's, you need to quickly assess your options, make your selection and implement it.  Hopefully, the questions we are posing help you in this process.

In previous posts, we discussed how autonomous you wish to be, the need for flexibility in a solution, hardware versus software DCA's and finding a solution to meet all your customers' requirements. Our next factor is:


Are there affordable training options?

Software is software, and they all have a learning curve.  Some are easier to master than others.  The important consideration is does the solutions company offer a variety of options that can fit all your needs?

Managed Print Services Engagements and Bringing Equipment “Up To Spec.”

This is one of the steps that will need to be address when implementing a Managed Print Services program. There are several methods of dealing with bringing equipment up to OEM specification when taking over the full responsibility for all maintenance issues going forward. The important point is to not allow this to become a barrier to getting started. You need to

get your solution in place as soon as possible. Below are a couple of common methods we have seen for dealing with this issue. See which works best in a particular situation and know that you can come up with any hybrid that meets the customer needs and helps to move the deal forward

Managed Print Services "Business Solution Series Movie"

The next movie in Miracom Network's Business Solutions Series has been uploaded to YouTube.

The Repair Management Process movie discusses all the interactions necessary by the customer to identify a print service need, contact a service provider and then following the life cycle of that request.  How are they managing that process?  Do they have a way to measure the quality of these repairs?  Why not select a provider that can take over this process, freeing up their staff for more important work?

How does the Business Solution Series promote an independent managed print service initiative?  First, it highlights the fact that as an independent, you aren't tied to a specific toner source.  You can provide the best option for your customer.  It also positions you as the expert when it comes to their print needs.

Methods For Addressing Existing Inventory Levels When Implementing Managed Print Services (Cost Per Page) Programs

There are several methods of dealing with beginning inventory at the start of a Managed Print Services (cost per page) program. The important point is to not allow beginning inventory from being a barrier to getting started. You need to get your solution in place as soon as possible. Below are a couple of common approaches that can be utilized to address beginning inventory. These will help to remove any barriers from moving forward, and can help expedite implementation. See which works best in a particular situation and know that you can come up with any hybrid that meets your customer’s needs and helps to move the deal forward.

* Page Credits:

Under this scenario, you would add up all the remaining on site inventory and provide the customer with a credit in future pages printed. These credits can be spread over any number of their future invoices. For example, the credit may be 100,000 pages and the customer prints approximately 500,000 pages per month; you may issue them a 25,000 page credit against their next four (4) months invoices.