WHAT IS A PHOTOCOPIER SERVICE CONTRACT?
Demystifying Photocopier Service Contracts
- Photocopier service contracts outline the service levels you’ll receive with a managed print solution
- These agreements can last 5 years, so understand the terms to ensure a positive experience
- Service contracts detail response times, supplies delivery, maintenance frequency and replacement policies
- Review contract terms like pricing, length, renewal options, and termination policies
- Ask about extra fees not covered to avoid surprise costs down the road
Copies
Photocopier service contract copies: You usually pay a cost per copy or per print in the photocopier service contract that is to cover toner, callouts, parts, labour, etc. Colour is more expensive than mono to print for the dealer and this is usually reflected in the price. Although the cost per copy may seem small it soon adds up, 1p per mono may not sound like much unless you’re doing 100,000 per month (£1000) Minimum billing means you have a minimum cost per month instead of a completely variable plan that just charges with what you use. This means no matter how little a number of copies you do you will pay a minimum amount.
Per scan billing
Photocopier service contract billing: Ricoh and a couple of other manufacturers, the machines can be setup per scan instead of per copy. This means that one colour print clicks 3 colour and one mono click. Check your paperwork and the machine when it arrives to see how you’re configured. I have seen many reputable dealers making a lot of money from this and not giving refunds (or limiting refunds). So it’s worth checking early on. The way you check is by making a note of the meters, doing a colour print then make another note of the meter. Compare the difference, if you are on “per scan” it will register more than once for colour and probably even a monoprint.
Cost per copy increases
Photocopier service contract cost per copy (CPC): Most dealers have on their terms and conditions the ability to raise prices over the course of the contract. From as little as 5% starting after 3 years or I have seen as much as 20% every 6 months. If you have 5-year contract rising 20% twice every 5 years you are going to be paying a significant amount more per month.
Start 0.01
6 mths 0.012
Yr 1 0.0144
6 mths 0.01728
Yr 2 0.020736
6 mths 0.024883
Yr 3 0.02986
6 mths 0.035832
Yr 4 0.042998
6 mths 0.051598
By putting all the costs into a spreadsheet that calculates the increases and terms you can see how you will be affected.
Per scan billing
Photocopier service contract billing: Ricoh and a couple of other manufacturers, the machines can be setup per scan instead of per copy. This means that one colour print clicks 3 colour and one mono click. Check your paperwork and the machine when it arrives to see how you’re configured. I have seen many reputable dealers making a lot of money from this and not giving refunds (or limiting refunds). So it’s worth checking early on. The way you check is by making a note of the meters, doing a colour print then make another note of the meter. Compare the difference, if you are on “per scan” it will register more than once for colour and probably even a monoprint.
