Company News
Written on 14.06.24
One of the key print management challenges for businesses is cost. According to research 90% of businesses fail to track their printing costs and could reduce their printing expenditures by 10 – 30% if they knew where their money was going. Renewing contracts for photocopiers can be costly, but not if you work with a Managed Print Services (MPS) provider. Leveraging an MPS can reduce your printing costs by up to 40% and MPS providers will optimise printer usage, monitor print volumes and provide insights into printing costs.
This article takes a close look at the key considerations of MPS explaining the intricacies of costs, pricing models and the many factors influencing them.
In simple terms, Managed Print Services (MPS) are the outsourcing and delegation of printing and document management tasks to external providers. This comprehensive service encompasses the overall management of the solution including installation, maintenance and overseeing hardware such as printers and copiers, alongside monitoring and managing printing activities within an organisation.
MPS costs can vary considerably depending on factors such as company size and required services.
Key cost components include:
Pricing for MPS typically aligns with three predominant models:
Cost per print is a popular model, incorporating expenses related to printing, such as toner, maintenance and repairs. By embracing this model, your business can have better control over printing expenses, solely paying for actual output, rather than upfront investments in printers and supplies. The cost per print model encourages efficiency and reduces waste, as your business is effectively incentivised to minimise unnecessary printing to lower costs.
Resembling the cost-per-user model prevalent in managed IT services, this model highlights the number of users accessing printing services, rather than focusing on print volume. It encompasses all costs associated with printing, including equipment, maintenance, supplies, and support. By adopting this model, your business can streamline budgeting and forecasting, with a predictable cost per user, irrespective of printing volume. You can also foster efficiency and cost-consciousness among users by incentivising them to minimise unnecessary printing.
In this model, your business remunerates a fixed fee for each printing device deployed within the organisation. The fee encompasses all associated costs, including maintenance, repairs, supplies, and support. Unlike other models hinging on print volume or user count, this model simplifies billing, furnishing a predictable cost per device. With this approach you can manage printing expenses effectively, with clear visibility into costs associated with each printer or multifunction device.
There are several factors that can significantly affect the cost of MPS and it’s essential to be mindful of these elements:
In most cases, the monthly print volume is determined and included in your MPS contract, with an additional click rate applied for any prints exceeding the agreed-upon limit. The click rate, or price per print, is influenced by various factors, such as the specific printer model and the supplies required by the machine.
In addition to black-and-white prints, there’s usually a separate charge for including colour prints in your MPS contract. Colour prints carry a higher cost due to the wider price range and increased expense associated with colour printing.
Many managed print customers opt to include a calculated number of monthly prints in their contract. In doing so, they often receive a price break on the click rate per print, as they guarantee the provider a certain volume of prints each month.
Before implementing an MPS, providers typically conduct a thorough evaluation of your current printer fleet to determine which machines may need replacement for optimal fleet optimisation.
For large companies managing numerous machines, it’s common to find outdated or inadequate equipment within your fleet. In these cases, an MPS provider would recommend investing in new equipment to enhance efficiency.
The total cost of adding new printers to your monthly MPS bill is usually broken down by the MPS provider. The pricing is contingent upon the number of printers included and the chosen models.
The choice of software integrations and features within an MPS solution plays a significant role in cost considerations.
If you opt for advanced print management software equipped with features such as user authentication, print job tracking and cost allocation this may result in higher licensing fees. However, these features offer tangible benefits, including enhanced print efficiency, waste reduction and better control over printing expenses.
While initial costs may be higher, the long-term savings derived from improved efficiency and reduced waste can outweigh the upfront investment. By carefully selecting software integrations and features tailored to your organisation’s needs, you can optimise your MPS solution for maximum cost-effectiveness and productivity gains.
The terms outlined in Service Level Agreements (SLAs) are pivotal in shaping MPS costs. SLAs set out the support level, response times for maintenance requests and procedures for resolving print-related issues. Opting for comprehensive SLAs with shorter response times and guaranteed uptime may entail higher service fees.
Conversely, selecting more basic SLAs could lower upfront costs but might result in prolonged downtimes and potential productivity losses.
In addition to fundamental print management functions, extra services and support can influence the overall cost of your MPS.
This could include workflow optimisation, document management solutions, training programmes and ongoing technical support. While these add-ons can significantly boost productivity and streamline print processes, they also contribute to the total cost of an MPS.
Managed Print Solutions are cost-effective alternatives to conventional ‘pay as you go’ printing. With fixed costs per page and all services and supplies inclusive, an MPS eliminates ambiguity surrounding office printing costs.
The cost per page for a managed print solution will typically be below 9p per A4 colour print. Whereas a typical A4 colour page on a conventional office printer can easily cost 60p and a print with lots of the page covered can cost £1 or more. Traditional printers can also entail confusing cost structures for your business and hidden expenses, often escalating per-page costs significantly.
Office printing costs are often underestimated and can encompass numerous upfront and hidden expenses. MPS offer transparent, fixed costs per print, helping you to accurately budget and streamline cost management. By calculating precise printing costs per page, your business can effectively budget for annual printing expenses and monitor usage through user-friendly print monitoring tools.
Failing to use an MPS could lead to:
Not every business needs an MPS and reputable providers will inform you if their services aren’t required. However, if print costs, downtime and maintenance are key challenges for your business an MPS can deliver a hassle-free, streamlined and cost-effective print environment.
An MPS should encompass more than just hardware and supplies. Ideally, providers offer attentive support, continuous improvement, modernisation and assistance in streamlining business workflows.
Hidden print costs can be substantial for your business as these statistics outline:
In the short term, your bill may fluctuate. However, in the long run, organisations typically realise total cost savings in supplies, management, IT labour, and more from using an MPS.
MPS are ideally suited to organisations with substantial printing needs, particularly those exceeding 50 users.
Determining the right managed print coverage for your business depends on various factors, including the size of your organisation, printing volume and specific business requirements.
A print assessment may help you reveal a diverse mix of printers, including off-brand devices.
Consider hardware, software, maintenance support and scalability options and choose a solution that aligns with your needs and budget and enhances productivity while minimising downtime.
Choosing an MPS provider should be about more than just price. You need to consider reputation, service quality and support. At Aurora Print, for example, we are known for our bespoke, comprehensive solutions that cater to various business requirements. We put our customers first.
An MPS offers a practical and straightforward solution for streamlining your businesses print management while effectively controlling costs. By leveraging an MPS, you can unlock significant cost savings, improve operational efficiency and access invaluable support. Embracing an MPS will ensure the success of your investment and also help you to realise tangible gains, making it a smart choice for enhancing productivity and profitability.
Discover the business gains and potential of Managed Print Services with Aurora Print and revolutionise your print management strategy. Contact us today.
