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.