Managed Print Service Programs

Managed print service (MPS) programs offer different service pricing models to businesses. Each model has its own pros and cons and the best fit depends on an organization's specific business needs. A true managed print service provider evaluates these options along with current and future goals to propose recommendations based in data vs taking whatever program is currently in place and replicating it. It is important to understand the service programs available and how they can impact your bottom line. The three main service programs are an allotment, cost per copy, and "unlimited" printing.

An allotment service program is when businesses pay a fixed monthly amount for a certain number of black and white and/or color prints. This model is great for businesses that have consistent printing volume month to month and want to have fixed printing costs. In this program, if a business exceeds their allotments, they would be charged for overages. Overage rates are a bit higher than the allotment base rates but are typically the same as cost per copy service program rates. With this in mind, one could argue that once you hit your maximum allotment, you then pay cost per copy for anything above that maximum. On the other hand, if you are only using a fraction of your allotment volumes, or your allotment has been set too high, you are then paying for what you are not using therefore also spending more than needed. Finding the right balance is the key to lowering expenses in this program. At TTSG, we believe flexibility is very important, especially when these contracts are typically 5 years. We understand that business needs change which is why our service programs all include annual account reviews where one of the things we look at is the service program compared to actual usage and make changes as necessary.

The cost per copy (CPC) service program is when businesses pay for exactly what is actually printed. This model is great for organizations that have variable printing volume throughout the year such as schools, where the printing is very low during the summer and high during the school year. In these cases an allotment could end up being the higher cost option because the allotment is set based on the high volume with the goal of avoiding overages. When compared to the low volume times, the cost of paying for what is not used ends up costing more than what the cost per copy service would have been. This is why doing a complete analysis is so important to us at TTSG. We gather usage data and then compare these programs to uncover the most cost effective option while making sure to also address your current and future goals. For example, for some non profit organizations a CPC plan may be the most cost effective, but their need to have a fixed cost every month for budget purposes is more important, so in this case an allotment with it's slight lower rates is the best choice. If a set monthly spend is not critical, then the CPC program would be the way to go.

Over the past few years you may have heard about "Unlimited" printing program as new service program options. In reality these programs have been around for many years. Essentially, how this program is set up is by looking at the highest overall print volume a company produces and then adds another variable percentage to that maximum volume. The idea is that by adding that extra percentage, the new maximum volume will never be reached giving the illusion of "unlimited" printing. This inflated allotment typically including fees and other hidden costs is then bundled with the hardware lease. With this option businesses pay a set monthly cost for all printing needs, including equipment, supplies, and maintenance. If the sole goal is to have a single invoice this would be a good choice however, if your goal is to have the lowest possible service costs and billing transparency this is not the best program. This model may seem appealing, but there are often hidden costs and limitations that make it less than unlimited. Fine print in contracts note fees for printing over the expected volume, the ability to increase the cost of service based on print volume increasing, and offers no ability to make any adjustments because of service being wrapped up in the lease agreement. Businesses should carefully review the terms and conditions of any unlimited print program before signing up.

In summary, each MPS pricing model has its own pros and cons. Working with a true managed print service provider businesses can carefully consider their printing needs and budget before choosing a service program. It's also important to review the terms and conditions of any MPS program before signing up to avoid any surprises or hidden costs because not all managed print service providers value transparency. As businesses continue to seek ways to reduce printing costs and streamline printing processes the promise of unlimited printing for a fixed monthly fee may seem like an attractive solution to businesses looking to simplify their printing expenses. Instead, they often end up paying more in the long run with no ability see what their actual service costs are. Similar to an allotment set too high, the unlimited program includes a certain number of prints each month. Unlike an allotment, or a CPC service program you will never know what that included number is or how your actual average usage compares. Knowing which service program is the best choice is the result of a proper analysis. By being informed and proactive, businesses can find an MPS provider that evaluates all service programs to find one that truly meets their needs and budget.