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

With over 40 years in the printing industry, Precision Peripherals Ltd has deep expertise in identifying the common clauses and pitfalls in managed print service contracts. We are dedicated to ensuring transparency and honesty in all our dealings, particularly for businesses in Poole.

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: Some contracts impose minimum monthly print volumes well beyond your actual needs, leading to unnecessary costs for unused services. This is a crucial consideration for Poole businesses aiming for cost efficiency.

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: These clauses might automatically extend your contract, requiring cancellation within a specific period to avoid unwanted renewal, a detail every Poole business should monitor closely.

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.

We are dedicated to supporting Poole’s business community in making informed decisions. If a deal sounds too good to be true, it likely is. Precision Peripherals Ltd is 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 tailored specifically to the needs of Poole businesses.