Implementation Steps For A Managed Print Services CPP 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.

* Step One: Install a DCA

First, about your DCA (Data Collection Agent); are you installing a software DCA or a network appliance based DCA (hardware DCA solution); much of that decision will depend on the security concerns of the end-user IT department. Remember to provide flexibility; options that will meet your customer needs and expectations.

Typically it will make a lot more sense to first install your DCA prior to establishing an initial cost per page (CPP) rate. This approach will provide you with a much clearer picture of the number of devices to be included, their physical locations, % of duty cycle currently being utilized, along with their related and overall print volumes. You’ll be in a better position to adequately establish your initial CPP rate, once you have this data.

* Step Two: Establish an Initial CPP Rate.

Next, establish the initial CPP rate with your customer. This rate can be determined a number of ways but one that will be easiest for the customer to engage with, is one that identifies their current hard costs, and sets a rate at or below that figure. This can be determined by taking the total amount of corporate dollars spent on print and dividing that figure by their total pages printed. Unless their business is seasonal, this estimate of pages can be determined with a one month period and can be best identified once your DCA is installed. Since many customers are not able to provide you with all the data necessary to fully establish the initial rate, starting out with a “Pilot Program” allows for the establishment of an initial rate with an understanding that said rate can be a review and adjust appropriately.

* Step Three: Tag Print Devices and Make Certain They Meet OEM Standards.

If a print device does not meet OEM standards, repair costs could significantly impact your ability to manage the print environment within the confines of the cost per page rate established. It needs to be made clear that bringing equipment up to spec or documenting possible exclusions on the front end, will allow you to meet all performance obligations based on the negotiated cost structure.

* Step Four: Reconcile Gap between Initial CPP Rate and Actual CPP Rate.

At a pre-negotiated time, if required, you and your customer should sit down and review the numbers. A historical perspective of their print environment and the services you are now providing, will allow you both to more realistically gauge and agree on the accuracy or needed adjustments to the cost per page rate. This analysis period usually requires 3-6 months of data.

* Step Five: Continue to improve on your profit margins and where possible reduce the CPP Rate.

Managed Print Services is an on‐going process. It is not a one‐time event! You should get together periodically through‐out the year to review operational data on your customer’s print environment. Your MPS software will provide you with the very information you need to evaluate print environments in real‐time, and understand how to improve upon them, as environments and print patterns change.