service contract question

**Intone** · 05-10-2016

we are looking for any input on this tough scenario we are finding ourselves in with a couple clients. in both scenarios we have clients with color boxes on a cost per copy with toner included. doing the math it seems they are using more toner than they should be. going back out to print a coverage report to see for sure. anyone else encounter this similar scenario? and what is a typical way to handle this situation? thank you guys.

**sharptech1** · 05-11-2016

what brand? customers love changing toner. light copies? toner must be low. light scans? toner must be low. making a noise? toner must be low. customers like that must be educated. if they don't listen charge them

**allan** · 05-11-2016

The contract should be workout for 5% coverage for office. Every toner does have a yield and if they exceed the yield they should pay the difference.
Our service system does calculate yield and flags toner overuse.
If you exclude the toner from the contract they are tempted to use the cheapest stuff on the market.
And that would break the relationship quickly.

Even dots on the paper is magically the toners fault.

**Intone** · 05-11-2016

the model brand is copystar cs-255c.

**qbert69** · 05-17-2016

No color toner in contract...PERIOD! (only black)...leave no room for abuse!

Stipulate in contract that end user MUST use OEM toner!...otherwise it violates contract and they get charged EXTRA for toner related repairs!

By doing the above, it makes the customer ACCOUNTABLE for their own actions and uses/abuses!

Using OEM minimizes the risk of premature failure of related parts.

PS--just to add, non-OEM toner can cause toner dusting which then gets in areas--filters, fans, electronics, motors, etc. and causes more unnecessary problems!

**KenB** · 05-17-2016

This may sound stupid,and really dated, but make sure they aren't making copies with the cover open.

That wastes more toner than anything else.

Many years ago I had a customer who complained about toner usage. When I got there I saw them making copies of checks with the cover (no doc feeder) open.

Even full size pages that have no area around the original will still waste toner.

**qbert69** · 05-17-2016

Originally Posted by KenB

This may sound stupid,and really dated, but make sure they aren't making copies with the cover open.

That wastes more toner than anything else.

Many years ago I had a customer who complained about toner usage. When I got there I saw them making copies of checks with the cover (no doc feeder) open.

Even full size pages that have no area around the original will still waste toner.

Yep!...and too much toner on the leading edge can cause fuser jams!

**Ctl-Alt-Del** · 05-17-2016

Originally Posted by Intone

we are looking for any input on this tough scenario we are finding ourselves in with a couple clients. in both scenarios we have clients with color boxes on a cost per copy with toner included. doing the math it seems they are using more toner than they should be. going back out to print a coverage report to see for sure. anyone else encounter this similar scenario? and what is a typical way to handle this situation? thank you guys.

Explain it to them politely but bill them for the excess toner IF that's how your contract is written. Here is some verbiage that should be incorporated into your service contract terms and conditions. Along with signing the actual contract we have them initial these at the start of the contract and they're also printed on the back of every contract invoice.

All parts and supplies provided by Company Name under this contract are property of Company Name. If a contract is not renewed, Customer is responsible for returning all unused supplies. If supplies are not returned within 30 days of non renewal of contract, Company Name will invoice Customer for full retail value of supplies. All parts are furnished on an exchange basis and replaced parts become the property of Company Name. Parts and supplies are provided under this contract according to the number of copies specified in the contract based on manufacturers suggested yields. Supplies required in excess of manufactures suggested yield must be paid for by the Customer separately.

There is a three part explanation for this clause,

TONER: If you provide supplies (toner) to use during the contract, they are yours, not the customers. If you sent them 5 toners to use to make copies under the contract and they cancel the contract before they install the toner then you need to get your toner back (it's the most expensive part of the copy process). The contract provides copies/prints, not toner.

PARTS: if you replace a part under a service contract the defective part is yours, doesn't seem like a big deal until an IT manager won't let you leave their building with a defective hard drive in your pocket, and if you can get warranty coverage for your defective drive you're going to lose service profitability on that machine. If IT wants to keep their old HDD's than they can pay for them, this includes them wanting HDD's out of the trade-in's and lease returns.

EXCESS USAGE: Supplies are provided at manufacturer's yields. If they use more than that they get a bill. I think I've only had to bill customers 3 or 4 times in the past ten years for excess toner usage but we have a general policy to not sell to print-for-pay or graphics arts specific customers since they are generally high-demand shitty payers and any margin you make will always be destroyed by the 15,000 collection calls you would need to make for every invoice. Leave those deadbeats for the competition to lose money on.