Companies’ investment of R1.5 million on 4 Devices, could have potentially been R350k!
You really need to know and understand the rules of engagement of the Office Automation and Asset Financing World, as being aware of the detail can possibly save you millions!
In our world and our interaction with clients, we have accepted that the printing and print related contracts, are placed at the bottom of the food chain. As specialist in our field, we believe that C levels in businesses should be aware of what’s going on. This information is not always filtered through the correct channels of the organisation, to ensure that contracts and pricing are properly reviewed, before it is signed.
1. Know what you need
Here are 10 tips that can help you when deciding on the correct vendor & printer for your business.
Historical data on the device behaviour and volumes can help you understand correct requirements for the device size & purpose. In the case of an environment with 5 or more printers, we would strongly advise a Print Assessment.
2. Keep your eyes peeled when financing
You will be offered a great deal, some free, some you don’t need, often glitz and glamour and this will all push up that monthly fee. Ensure that you review all Terms & Conditions linked to the rental agreement.
3. Term of payment and ownership at end
36 or 60 months are the norm and have been for years. Devices do not always reach end of life when the contract is expired, so it’s good to know your options at the end of term, keep your finger on the pulse. If the device is working fine and it still has life left, there is no need to replace it.
4. If possible, prevent settling a contract before end of term at all costs
This is a classic case of paying for a device that’s no longer in use, as well as paying for the new device - it may seem cheaper at face value but know that the settlement is just built into the new contract.
5. Be aware of all-inclusive deals that have a minimum bill attached
If it is a Managed Print Services (MPS) contract that gives you all the bells and whistles at a set fee, in the contract there will be a minimum bill and most often you will pay a premium, ask the questions to understand the breakdown of costs and any penalty billings linked to the minimum bill.
6. Understand Total Cost of Ownership (TCO)
Volume of pages you print is the key to understanding your TCO. You are not actually paying 8 or 10 cents per copy. Remember that your hardware, software as well as paper makes up your TCO. Only then you’ll understand what you truly pay per page.
7. Service is the priority irrespective of the brand. "Brand names cannot mask bad service."
Canon, Ricoh, HP, Lexmark, Xerox, Samsung …… all have different features and benefits however the output is often the same. Down time and the inability to print can be very costly, therefore, service and uptime is paramount.
8. Nullum Gratuitim Prandium….“There's No Such Thing as a Free Lunch”
When you hear you are offered a free device, free iPad, free weekend away, free new fridge for your bar or a free camera …… you are paying for it, don’t be fooled.
9. Read between the lines. "Contracts are written in very small writing …. Why?"
Read and understand the contract terms and fine print. It can save you “big bucks” in the long run.
10. Friends are friends, business is something aside. "He is my friend and would never rip me off"
A friend has your back! True testament to this statement, a friend will and would have made you aware of all the above.
Understanding the above, again can save your business millions over the period of the contract.
To assist businesses with this particular issue, we have a Total Cost of Ownership (TCO) calculator which will help you make sure, that you are getting market related pricing from the vendors that supplied you with proposals.
Click Here to Download our Green Office TCO Calculator.