Five Key Factors to Demystify a Page Per Print (PPP) Contract
Mitchell Filby
Strategy, Innovation, Digital Transformation, Author, Board Director, XaaS, Business Model Disruptor, Publisher, Journalist and Serial Entrepreneur, Business Mentor, Coach, Advisory, Global MPS expert
When organisations look to reduce or consolidate their cost of doing business, the first steps are usually to itemise and review areas where their current business costs are unknown, uncertain or starting to increase.
In many instances there are proven business best practices or quick win opportunities to achieve cost reductions or consolidation that many companies can manage on their own. However, in some cases, businesses may require a deeper industry understanding or proven processes to provide increased transparency and analysis of these costs. Sometimes it’s difficult to know how suppliers break down costs and charge them to the business.
In many cases, existing contract pricing and invoicing charging conditions change and businesses can be uncertain why and how increases have occurred.
Many customers we meet either need to go to market for a refresh of their device fleet or are looking to implement an MPS program that will include contracted elements with one or more suppliers. In other cases, some customers are trying to make sense of an existing contract that they have inherited and their concerns are raised due to inconsistencies in the contract logic of existing suppliers.
In all cases the same problem arises: that the page per print (PPP) contract is not working for the client or they feel that the supplier or suppliers are not as transparent as they should be, raising concerns about trust.
Some clients simply feel that they are not getting the best deal but find it difficult to compare and benchmark the contracts as the key elements are difficult to break down.
To assist clients in senior executive roles across finance, IT and procurement I have prepared five key factors to demystify a page per print contract.
1. Be clear that this is a financed product
2. The three ingredients of a PPP contract
3. Variations and how they can impact the customer
4. The good and bad of a PPP contract
5. What makes you attractive?
We have and continue to work with many customers who are simply shocked at the real costs of their contract. Many are confused as the provider point blank refuses to provide the information the customer requires so they can remove themselves from supplier contracts such as these.
When you feel that you have tested or reached a point with the relationship that you start to lose trust with the provider, it’s certainly time to seek another set of eyes. A set of eyes with tested industry experienced and who is independent and agnostic in the outcomes.
To read more about Five Key Factors to Demystify a Page Per Print (PPP) Contract please go to our website at www.first-rock.com and hit On Sale Now
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Strategy, Innovation, Digital Transformation, Author, Board Director, XaaS, Business Model Disruptor, Publisher, Journalist and Serial Entrepreneur, Business Mentor, Coach, Advisory, Global MPS expert
10yOscar - its a sad fact isn't it when you find such a large anchor attached to the client. Unfortunately some of those PPP contracts continue to put the customers well under the water-line. However that is not to say PPP contracts are not appropriate for customers. Some customers will see this as a very good alternative, providing they are designed right and are aligned to the customers business objectives and that the risks are have been communicated clearly.
Neither Einstein nor I have a PhD, but I wrote The Book on Selling!
10yHi Mitchell - I definitely endorse your comments, especially the rollover rorts that I'm guessing you're hinting at in point 1, beware this is a financed product. Due to my own past experience in the business, the Reverend and senior Warden at my Church asked me to select a new MFD (active Churches are a high-performance production environment in printer terms). They were delighted with their existing supplier and a vocal member of parish council was endorsing an alternative (and beloved to her through business) supplier, but at the end of the day I had to go with a 3rd supplier. Nearly 12 months later everybody is delighted, even the naysayers, proving exactly what you've written, Mitchell!