Managed Print Contracts

Perils and Pitfalls - The Traps That Often Come with Managed Print Contracts

With over 40 years in the industry, we have frequently encountered common clauses and traps that unfortunately exist within our sector. While this is not an exhaustive guide, rest assured our contracts are transparent and we are always honest and upfront.

Hidden Costs and Fees: Some contracts may include fees that are not clearly disclosed upfront. These can include charges for delivery, installation, and even "administrative" fees that inflate the cost beyond the advertised price.

Excessive Minimum Print Volumes: Contracts might require a minimum monthly print volume that far exceeds the client's actual needs, leading to overpayment for unused services.

Long-Term Commitments: Some managed print services require lengthy contract terms that can be restrictive and costly to exit. This can be particularly challenging if a business's needs change over time, rendering the contract less suitable.

Auto-Renewal Clauses: Contracts may automatically renew for another term unless the company cancels within a specific timeframe, which can catch businesses off guard if they are not satisfied with the service or wish to change providers.

Escalation Clauses: Some agreements include clauses that allow the service provider to increase prices at specified intervals. These increases can sometimes be substantial and not always justified by corresponding improvements in service.

Limited Flexibility: Contracts may not allow adjustments based on fluctuating business needs, such as scaling services up or down as the company grows or contracts, which can lead to paying for more than what is used.

Refinancing Scams: Be wary of sales pitches that urge you to refinance equipment and pay off existing leases. In this scam, the salesperson may promise to pay off your current finance agreement as part of the new deal but instead pockets the money, leaving you responsible for both old and new leases.

Overestimating Needs: Sales teams might encourage companies to opt for higher-spec machines or more extensive service packages than necessary, leading to higher ongoing costs.

Poor Service Levels: Low response times and ineffective problem resolution can lead to extended downtime, impacting business operations. It's crucial that service level agreements (SLAs) are scrutinized to ensure they meet the company's operational requirements.

Ownership and Return Conditions: Some contracts can have stringent terms regarding the return of equipment or end of lease conditions, which can include penalties or fees for wear and tear that is deemed excessive.

If you are unsure, or if a deal sounds too good to be true, then unfortunately, it probably is. As part of our committment to driving rougue dealers out of the industry, we are always happy to examine and query contracts on your behalf.