Service Contracts – Where To Look & What To Look Out For:

Posted on June 19, 2020 | By User

At KISS, we understand the ins and outs of the printing industry and know exactly what to look for when it comes to photocopier contracts.

It’s important for customers to be aware that contracts are usually separated into two parts:

-the rental agreement held with a finance company

-the service contract held with the photocopier supplier

And while the rental components are straightforward, customers can often find nasty surprises within the service section. We are regularly meeting with prospective clients and drawing attention to one-sided contractual terms held with our competitors.

So, whether you are looking at your existing service contract, or weighing up options in front of you, these things are worth looking out for!

  • What is included? Most suppliers include service calls, maintenance, parts, toner, labour and repairs within their terms. If your contract is missing any of these then you should ask why.
  • Cost per-page printed: This forms the basis of the contract and is usually around .8-.15c for black and white and 8-15c for colour (A4).
  • Volume agreements: This type of agreement is becoming less common but can be extremely costly. The risks here are twofold: they commit the customer to paying for a certain number of prints REGARDLESS of whether they use them; they often include inflated print costs for any prints EXCEEDING the agreed volumes. They also mean extremely costly payouts for any customer who wishes to change supplier mid-contract.
  • Increases: The cost-per copy will increase over the duration of your contract in line with the cost of maintaining older technology. This is standard across the industry, but look to negotiate a fixed increase to prevent surprises.

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