Facilities Management Plans typically don’t have an initial charge or rental for the print devices, instead they offer a price per page printed and a minimum volume each month. A typical plan might look something like this for a single device; a minimum of 10,000 mono pages at 2.5c per page per month and a minimum of 11c per colour page per month.
These plans are structured to appear as though there is no charge for the equipment but the rental charge is built into the cost per copy. So on a device that would usually be rented at $200 a month and the cost per copy would normally be 1c per mono page and 10c per colour page, the cost per copy charge in a facilities Management Plan would be increased to 2.5c per mono page and 11c per colour page and committing the customer to a minimum volume each month provides the $200 extra to cover rental of the equipment.
Facilities Management Plans work well for when print volume is likely to increase over time because if your print volume exceeds the minimum in a month it reduces the term of the agreement. So if you find yourself in a position where the device can’t keep up with your increasing volumes before the end of the agreement term the payout can be very little.
The down sides are, if you don’t reach the minimum volume each month you still have to pay for the unused prints, if you exceed the minimum volume you still pay a higher rate per page and the charges can easily get out of hand and if you decide to switch to another manage print provider before the end of the agreement term as you will often need to pay out the minimum monthly per page volumes for the remaining term of the agreement, even though the old managed print provider no longer needs to service and supply consumable for the devices.
Block Plans usually consist of a fixed fee per month, which includes the device and X amount of printed pages a month. Once the included page volume is exceeded, standard cost per page rates for excess prints usually apply. Block plans are often sold as the device with free copies included. But as we all know, nothing comes for free and they are typically structured as follows; device rental in this example of $200 a month plus 10,000 mono pages at 1c per page per and 5,000 pages at 10c per colour page per month and presented as a total cost of $800 a month plus any pages printed in excess of the included volume.
Block Plans work well if you want to have consistent cost each month, and can make budget forecasting easier. But if you are not printing the minimum volumes, you’ll still be paying for pages your haven’t used.
Rental/Up Front + Cost per page
As the name suggests this model is very simple and consists of a rental charge or up front charge for the device hardware and a cost per page for printed volumes.
Simple, transparent and usually represents the best value as you only pay for exactly what you use and for that reason is why RODIN Managed Print Services work under this model. If you need to upgrade the device before the end of term there usually aren’t any penalties, although the remaining rental payments are worked into the rental figure on the new device. The other thing to watch out for and this is often true for all of the above mentioned plans are annual price rises in the cost per page rate. Many providers start with a low per page rate and apply as much as 10% price rises annually or sometimes more frequently. RODIN Managed Print Service are the exception, we provide a single fixed fee for the term of our print management agreements.
Now that you know more information about the workings of some of the more common Managed Print Plans, you will be more empowered to make the decision that represents the best value for your business next time your print devices come under review. If you feel your current Managed Print Pan is not suited to your needs, why not get in touch with your account manager at RODIN. We will perform a cost / benefit analysis for you on your print environment, show you what savings are available or if there are not any immediate savings available we will come up with an exit strategy for you, even if you are under contract.
If you are not currently a RODIN customer, give us a call on 1300 138 761 or email email@example.com