Photocopier service contracts – What to look out for?

Let’s be direct with this topic as it’s a critical part of any copier decision you make. Office Multifunction Printers are only as good as the service that’s behind them.

As part of a photocopier service contract, the supplier of the machine WILL charge you a cost per page that you print. This is usually around the 5-8c mark for colour (A4) and .5 -1c for black and white (A4) and will be billed to you in arrears each month above the cost of financing or purchasing the machine. For regional areas, cost per pages can be around 15-25% more due to travel and supply costs.

Although its seen as a service “contract” , unless agreeing to set monthly volumes (which we speak about in point 6.), its only an agreement between your supplier and your business that states they will service and maintain your device for the agreed period. You can cancel this agreement at anytime in the time you have the device however the cost of toners and servicing when needed can be significantly higher than the set cost per page of having an agreement in place

Service agreements can confusing but we highly recommend having one.

What is included in the service contract?

Most suppliers will include; Toner, Drums, Parts, Maintenance, Repairs & Labour. What they don’t offer are the output products like paper and staples and any issues past the network point.

Service contracts are designed to be hassle-free and to allow you to focus on your business and not maintaining a device in your office.

Most devices will email the print supplier to notify when toner is low so its fully automated and one less thing you need to think about.

When you need a service, typical service response times are 2-4 hours.

What else should I know?

Fine print- No one likes getting multiple page contracts with plenty of big words and fine print, but when it comes to a service contract for a copier, it’s critical you take the time and read it. Why? In recent years, copier companies have added extra terms to their agreements which are heavily weighted to them as a result of print volumes declining from the use of technology.

Conditions to watch out for:

1. “Base charges” This means the supplier can at any time charge you a flat fee of their choice over and above the cost per copy- It’s not every supplier but it’s becoming more common.
2. “Scanning Fees” These types of fees are quite new to the market. With people printing less and scanning more, the costs need to be made up somewhere as the machine will need servicing over time and the suppliers will need to ensure they are getting revenue from the machine to cover that cost. Tip – Although its a fee that will soon be made applicable by all suppliers, as of now its only a few brands. Get a second quote and use it as a negotiation tool to have the scanning fee removed if you decide to move forward with that brand.
3. “Service Increases” Yes the cost per copy WILL increase every year you have the device. This has been the case for many years as the cost of maintaining aging technology increases. A tip- Ensure you stipulate either a fixed period (the maximum you would get is 2 years) ,where you don’t get any increases or a fixed annual increase anywhere between 5-7% for the term of the agreement.
4. “A3 cost per page” Most suppliers will charge you the same rate as an A4 page but as the margin in print has reduced, some suppliers are now billing 2 x A4 sheets for a single A3 print. Be sure to clarify if you will be billed as a single cost or 2 x A4 pages
5. “Toner Delivery Fees” Again – Not all brands charge delivery fees for the toner but some certainly do. Although you might be paying the cost per page, you can still be charged a delivery fee. Ask the question early and get it in writing.
6. “Agreed volume” – This is a whole new topic in itself but if you rent or purchase a machine outright, you should NEVER commit to volumes unless you completely understand how they work. Why?  These agreements commit you to a set monthly minimum volume, and if you don’t meet that volume, you still get billed.  The biggest risk is if you ever decide to leave or upgrade your device. On this type of agreement, you will be contracted to paying out not only the finance of the machine but also any unused “agreed volume”. These types of agreements are now rare but in most cases are these agreements are only favourable to the print supplier and not the business. (For more advise on this topic, please email us with your questions and we will be more than happy to help).

The final word – There is always room for negotiation, don’t just negotiate on your device itself. Consider at least 3 suppliers and then compare the terms of each to ensure you really do get value.

Service agreements are a must when you purchase one of these machines but be carful and take your time to understand them. If there is something in it you don’t like, don’t sign it, have it removed or amended.

Have more questions? E-mail  us on [email protected] or chat with us on live chat now.