Thanks Thanks:  0
Likes Likes:  0
Dislikes Dislikes:  0
Page 1 of 2 12 LastLast
Results 1 to 10 of 11
  1. #1
    Platinum Member
    Join Date
    Apr 2008
    Location
    Baton Rouge
    Posts
    22
    Rep Power
    33

    Question MPS - Managed Print Services / Thoughts?

    Our company an independent Ricoh/Savin dealer is currently evaluating and exploring offering Managed Print Services. I'm just looking for feedback and thoughts from others that are doing the same or perhaps already offering the service.

  2. #2
    Senior Tech 100+ Posts
    Join Date
    Nov 2007
    Posts
    194
    Rep Power
    35

    Re: MPS - Managed Print Services / Thoughts?

    Our company is trying to do that and personally, I think it's a huge mistake. The idea behind it seems great. Take every copier, printer, fax, etc and put it under contract for a small CPC rate. Combined, that could be several thousands if not millions of copies per month. Multiply that by 1 or 2 cents and you're making some good money.

    However, the majority of these prints come from cheap, flimsy retail store purchased printers where the CPP rate could be 5 times more than what you are charging the customer. How do you make money if you're charging the customer 2 cents a copy when it costs 10 cents per copy for the toner alone? Not to mention that you have no support for these such such as service manuals, hotline, firmware, etc. Our policy is (and I haven't seen it considering we have maybe 3 or 4 actual MPS contracts) is if we cannot fix the problem in less than an hour, we just replace the printer. So now I have to trade in my Ford Tempo for an Econoline. So again, how are we making any money?

    Another point is that most companies make money from service. And a lot of that comes from billable calls. And a customer that has several HP printers, you can bill them thousands of dollars a month in labor alone. Throw in toner and maint kits, you're talking tens of thousands of dollars. If those are under contract, there goes that revenue.

    And lastly, what is the purpose of MPS? Why are picking up any machine from any manufacturer? Theoretically, when el cheapo printer dies, the customer is more likely to upgrade and buy a replacement from our company. WRONG! From a customer's point of view: I could buy a printer from my copier service company for $1,000 or... buy a new cheap one from Staples for $100. Either way, I'm paying the same service rate.

    Now my opinion is biased because I have yet to see this actually work, so I'd love to hear some positive views on this. Maybe I'm wrong about all of this, but I have not seen or heard anything to the contrary.

  3. #3
    Technician 500+ Posts
    Join Date
    Sep 2011
    Posts
    861
    Rep Power
    37

    Re: MPS - Managed Print Services / Thoughts?

    I agree with aodtech. One thing to consider is total volume versus equipment. If you have ten 60 to 80 ppm machines placed and the customer is running a total of 100k per month for all equipment, you are going to loose. I have seen where more equipment is placed because the customer wants convenience equipment. In my opinion, proper placement of equipment is the key.

    Another thing to consider is that picking up service on products you don't sell may backfire on you. Like other copiers or stand alone printers. Maybe replace them with your equipment.

    The concept of Manage Print Services is to seel your equipment and keep the competition out. One billing vs multiple billing.

    Allowing the sales department to manage this is a mistake. It must be a group effort from both sales and service management. Other wise the sales rep makes money and service goes in the hole.

    As far as replacing the equipment if not fixed in an hour, go ahead and set up some equipment and store it at the customer site. You are going to need it. It is crazy to offer this. It should be no different than any other customer. Maybe keep a loaner on site should you need it.


    Just my 2 cents worth. Good luck.

  4. #4
    Service Manager 1,000+ Posts
    MPS - Managed Print Services / Thoughts?

    prntrfxr's Avatar
    Join Date
    Apr 2008
    Location
    Living in Exile
    Posts
    1,638
    Rep Power
    58

    Re: MPS - Managed Print Services / Thoughts?

    In my humble opinion, MPS has ruined the printer industry. Many parts vendors are going out of business and service providers as well.
    Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well-preserved body, but rather to skid in sideways - Coke in one hand - chocolate in the other - body thoroughly used up, totally worn out and screaming "WOO-HOO, what a ride!".

  5. #5
    bennettoffice
    Guest

    Re: MPS - Managed Print Services / Thoughts?

    New to the forum so please be gentle.

    We have been successful in MPS for 2 years and in the 3rd year of our program. We charge a blended rate complied from an audit of 6 months of data. So we know what prints go where. We are a Kyocera dealer, but we can support HP. Any other device gets removed at the start of the contract because we include equipment in the price per page price. We truly manage the fleet and make adjustments as the customer needs throughout the 5 year contract. Margins are averaging 40% with our 30 contracts and 1 million prints a month. Service contracts have decreased 5% year over year for the last 2 years. MPS has grown to equal service contract revenue and is actually more profitable than service contracts.

    What you guys are talking about isn't MPS. If the customer is allowed to bring in cheap equipment what are you managing? We retain ownership of all our equipment, and that is the key.

  6. #6
    landmark tech
    Guest

    Re: MPS - Managed Print Services / Thoughts?

    Bennett,

    What MPS software are you guys using? We are looking into PrintAudit but aren't 100% sold on it yet.

  7. #7
    bennettoffice
    Guest

    Re: MPS - Managed Print Services / Thoughts?

    We use FM Audit and integrate with E-automate.

  8. #8
    Trusted Tech 50+ Posts
    Join Date
    Apr 2011
    Location
    Northeast, OK
    Posts
    86
    Rep Power
    28

    Re: MPS - Managed Print Services / Thoughts?

    How are you funding the equipment if you retain ownership? Leasing company policies on MPS equipment/billing/services are all over the map.

  9. #9
    bennettoffice
    Guest

    Re: MPS - Managed Print Services / Thoughts?

    We use a local bank and a line of credit. The company secures the note with the equipment. This allows us to set our own equipment requirements.

  10. #10
    Trusted Tech 50+ Posts
    Join Date
    Jan 2011
    Posts
    81
    Rep Power
    27

    Re: MPS - Managed Print Services / Thoughts?

    We made the decision a few years back to sit on the sideline and let those who try it fall on their faces. Sure enough the competition is falling on their faces with MPS. In my area Xerox pushed everything down to $0.010 per page on MPS so nobody including Xerox is making money. Now nobody who went into MPS is happy especially the customers who signed on for these low ball programs who now get terrible service and shotty supplies.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Get the Android App
click or scan for the Copytechnet Mobile App

-= -= -= -= -=


IDrive Remote Backup

Lunarpages Internet Solutions

Advertise on Copytechnet

Your Link Here