Pricing service contracts

[freedomtt]

I've been spending the past few days stratching my head on how to price out a service contract for a machine we just recently started selling (IR-C4080 to be exact). We are some what new to the full color world and I'm probably making this harder than it really is.

Any one care to share the 'secret' numbers?

Do you include toner in your agreements? I'm thinking of offering to the client both ways but I'm not sure yet.

I would be happy to hear any comments on how you work your service contracts

[bkivett]

service pricing

couple thing i think you need to be considering.
image coverage area, and average paper size customer uses.
if machin is in a true business color enviroment, then 6 per page and you should be ok.
if you use bei and put this box in a print shop that will run mostly 12 x 18, full page color, then at the 6 per, you will make a little, but your technician will be a bum to bei.
if you do not include toner, then another dealer will end up under cutting your toner price, which will lead them to undercutting your service price and taking customer.
heavy paper will also lower life of fuser which is crazy money.
if color is new, then you will need a tech to understand what a good test print 12 looks like, drums will go beyound 100 percent, if test prints are understood.
bgk