Breaking Down the Basics of a Managed Print Services Contract

In the era of digital transformation, businesses are constantly seeking ways to optimize their operations and reduce costs. One often overlooked area that holds significant potential for improvement is the management of print fleets. Whether you have one print device, 10 print devices, 25 print devices, 100 print devices or more, Managed Print Services (MPS) is a valuable solution for businesses seeking to optimize their printing environment, reduce costs, and improve efficiency, among other benefits. However, many people think a Managed Print Services contract is complicated or too complex for their organization. But this is not the truth!

Keep reading below as we break down the basics of Managed Print Services and a Managed Print Services contract, as well as who Managed Print Services is ideal for.

Managed Print Services is a comprehensive approach to print management that aims to optimize and streamline an organization’s printing environment. The primary goal of Managed Print Services is to improve efficiency, reduce costs, enhance document security, and increase overall productivity in the printing process.  This involves outsourcing the management of an organization’s print fleet, including printers, copiers, and multifunction devices, to a specialized service provider, such as Parmetech.

As your MPS provider, Parmetech takes ownership of overseeing all aspects of managing your print fleet including maintaining hardware and software solutions, monitoring usage, and providing ongoing support. This includes key services such as:

Assessment and Optimization: Depending on your initial needs, Parmetech can conduct a thorough assessment of your organization’s printing infrastructure, evaluating print volumes, costs, document workflows, and device performance. Based on this analysis, we develop an optimization strategy to improve efficiency, reduce waste, and streamline processes.

Print Fleet Management: If you’re looking at updating an older fleet to new equipment, this would include handling the procurement, installation, configuration, and ongoing management of the new equipment. Once new equipment is up and running, or if we are looking to put existing equipment under an managed print services contract, then print fleet management consists of monitoring and maintaining your devices to minimize downtime.

Print Monitoring and Reporting: Specialized software is used to monitor print usage in real-time, providing insights into print volumes, costs, and device performance. This data allows for informed decision-making, such as implementing print policies, identifying areas for cost reduction, allocating resources effectively, and staying on top when supplies are needed.

Document Security: Parmetech implements robust security measures to protect sensitive information. These measures include user authentication, secure printing, encryption of data during transmission, and compliance with data protection regulations.

Ongoing Support and Maintenance: Parmetech offer comprehensive support and maintenance through our Managed Print Services contracts to ensure the seamless and smooth operation of your print environment. This includes proactive monitoring of devices, timely repairs and maintenance, delivery of toner and other printer supplies, and more.

Many times, prospective customers don’t understand all of what’s included in their Managed Print Services contract or how the pricing works. Each provider may do things differently, but at Parmetech, we believe transparency is key and that a Managed Print Services contract should be simple to understand.

Whether choosing to work with Parmetech or another MPS provider, you’ll want to make sure you understand everything that is included (and what’s not included) in your contract and how the billing structure works before moving forward.

Some key questions to consider when reviewing the terms of a Managed Print Services contract include:

• Are supplies and service both included in your contract?
• What is the cost per page or cost per click charge?
• What is a base charge?
• Are pages/clicks included in your contract?

Are supplies and service both included in your contract?

At Parmetech, our standard MPS contract includes all parts, labor, and consumables; the only supplies not included are paper and staples. However, some MPS contracts include just toner, while others will include other print supplies such as maintenance kits, waste toner bottles, and drums. Additionally, some Managed Print Services contracts cover service only or supplies only. It is very important to understand exactly what supplies and levels of service are included in your contract when evaluating your pricing.

What is the cost per page or cost per click charge?

The terms cost per page and cost per click are interchangeable when it comes to a Managed Print Services contract. You may see them referred to as CPP or CPC in your contract language. Basically, a cost per click (or cost per page) is defined as one 8.5″ x 11″ page print. Managed print services are billed based on the number of clicks used per month (or number of pages printed per month). Black-and-white prints will have one CPC and color prints will have another CPC. It’s important also to note for those who print 11″ x 17″ that an 11” x17” page print may billed as two clicks or two pages.

So, for example, let’s say your MPS contract for your printer has a black-and-white CPC of $0.01 and a color CPC of $0.10, and you print 100 black-and-white pages and 200 color pages in a month. You would be billed $1.00 (100 x $0.01) and $20.00 (200 x $0.10) for a total $21.00.

What is a base charge?

Your Managed Print Services contract may include what’s called a base charge. This is a flat-fee per print device, usually charged per month. The base charge plus your CPCs (as explained above) are billed on a monthly basis and are what cover your supplies and service.

Let’s use the example above again. Your MPS contract for your printer has a black-and-white CPC of $0.01, a color CPC of $0.10, and a monthly base charge of $10.00. In the month that you printed 100 black-and-white pages and 200 color pages, your total MPS bill for the month would be $1.00 (100 x $0.01) + $20.00 (200 x $0.10) + $10.00 monthly base charge for a total $31.00.

However, it’s important to keep in mind that if you need to place a service call or supplies order for your printer in that same month, there are no additional charges. Your total spend on the printer is still $31.00 for the month.

Are pages/clicks included in your contract?

Some Managed Print Services contracts will include a certain amount of clicks per month, which is usually estimated off of your average monthly print volume. If this is the case, there will also be a cost per click for any pages exceeding the amount included in your contract.

For example, your MPS contract may have a base charge of $20.00 per month, which includes 500 black-and-white clicks, and a charge of $0.02 for every click over 500. This type of contract is usually “use it or lose it” – meaning, you are not credited for included clicks that are not used. So, if you print 500 black-and-white pages, you pay $20.00. If you print 100 black-and-white pages, you pay $20.00. If you print 1,000 black-and-white pages, you pay $30.00 ($20.00 + (1,000-500 * $0.02).

Other MPS contracts have no minimum volume required, which means you pay for exactly what you print each month, and only this. So, if you print 500 pages, you pay for 500 pages. If you print 1,000 pages, you pay for 1,000 pages. If you print one page, you only pay for that one page.

90% of companies don’t know how many printers they have or how much they spend on print. Do you know?

A Managed Print Services contract is ideal for anyone who would like to take control of their print spend and management. Whether you only have one print device or many print devices, the benefits of partnering with an MPS provider are real and tangible.

What are some signs that you may need a Managed Print Services partner?

• You have no idea what your organization is spending on print.
• You see members of your team printing off reams and reams of paper.
• You see printouts of documents in color when really only black and white was necessary.
• You see unclaimed documents left in the output tray when you go to use the printer.
• You have invoices from multiple vendors for supplies, service, and hardware.
• Your supply closet has stacks of unused toner, possibly for machines you don’t even have anymore.
• You run out of toner or ink and don’t have a replacement supply.

Depending on your environment, a standard managed print services contract like what we’ve covered above may not be the best fit. That’s why Parmetech offers our customers a range of printer supplies and service options that are completely customizable to fit your needs.

Whatever the size of your organization, there are many ways that managed print services will be able to help you to not only regain control of your printing, but also save you time, money, and ultimately transform you into a more efficient company.

Not sure if MPS is the right fit for you? Download our Ultimate Guide to Managed Print Services.