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

For businesses in Northumberland considering a managed print service contract with Precision Peripherals Ltd, it’s essential to be aware of the common pitfalls often encountered in these agreements. With over 40 years of experience in the printing industry, Precision Peripherals Ltd brings deep expertise to the table, specifically tailored to ensure transparency and honesty in all our dealings with Northumberland organisations, including those in Alnwick, Blyth, and Hexham.

Common Pitfalls in Managed Print Service Contracts:

• Hidden Costs and Fees: Beware of contracts that may include undisclosed fees such as charges for delivery, installation, and "administrative" fees that inflate the cost beyond the advertised price.

• Excessive Minimum Print Volumes: Many contracts impose minimum monthly print volumes that far exceed actual needs, leading to unnecessary expenses for unused services—a crucial consideration for cost-efficient Northumberland businesses.

• Long-Term Commitments: Some managed print services demand lengthy contract terms that are restrictive and costly to exit, a significant challenge if your business needs evolve over time, making the contract less suitable.

• Auto-Renewal Clauses: These clauses might automatically extend your contract, requiring timely cancellation to avoid unwanted renewal—a detail every Northumberland business should monitor closely.

• Escalation Clauses: Watch out for clauses that allow service providers to increase prices at specified intervals, which can sometimes be substantial and not justified by improvements in service.

• Limited Flexibility: Many contracts lack the flexibility to adjust services as your business grows or contracts, potentially leading to overpayments for services not used.

• Refinancing Scams: Stay vigilant against sales pitches that encourage refinancing equipment and paying off existing leases under deceptive promises, leaving customers legally responsible for paying off two leases.

• Overestimating Needs: Sales teams may push for higher-spec machines or more extensive service packages than necessary, leading to higher ongoing costs.

• Poor Service Levels: Ensure service level agreements (SLAs) are scrutinized for low response times and ineffective problem resolution, which can cause extended downtime and impact operations.

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

Precision Peripherals Ltd is committed to supporting the Northumberland business community in making informed decisions. If a deal sounds too good to be true, it likely is. We are here to help review and explain any contract details, driving out unscrupulous practices and ensuring you get the best possible terms. Reach out to us for guidance specifically tailored to the needs of Northumberland organisations.