Copiers and printers, also known as multifunctional devices (MFDs) and multifunctional printers (MFPs), are the backbone of your firm’s office operation. A well-planned configuration with a cost-effective contract can not only make your office run more efficiently but do so at costs that can dramatically impact your profitability.
Here are five (5) keys ways to reduce your output costs.
- Combine the spend between printers and copiers – Not only do you want to combine the volumes and placements of your copier/printer fleets but you also want to combine the spend for these two areas. Many firms keep these areas in different functional silos, but the smart way to go is to combine these areas together and look at output and procurement together. This will increase your buying power and, therefore, will decrease your costs.
- Consider going direct – If your printers and copiers are currently under your outsourcing contract, consider breaking them out and going directly to the market. Not only will you save money, but your current outsourcing vendor will still maintain the equipment if you structure their contract correctly.
- Create a Competitive Situation – To renew a printer or copier contract without getting competitive proposals is leaving a significant amount of money on the table. Incumbent vendors will not put their best pricing and terms on the table unless they feel they may lose the deal while new vendors, especially competitive manufacturers, will be very aggressive to get your business. Many vendors will say you are getting the ABA discount which is their best price – don’t believe it. A well run competitive RFP will beat this price every time.
- Incorporate contractual terms/performance standards that insure satisfaction – In number 1, we recommended that you avoid increasing your fleet to have “back-ups” in case one of your units goes down. Yes, copiers and printers break and need maintenance, but if your maintenance agreement is structured so that there are detailed response times with financial penalties outlined and you choose the right service provider, then your downtime will decrease dramatically.
How do you know if your firm is a good candidate for reducing cost your output costs by half? It’s not as easy as it first appears. Start by evaluating these different measures, then talk to an industry expert (like Mattern & Associates) who can interpret the results and make informed recommendations on whether and how to respond with changes.
Click here to read how one firm implemented a number of the above steps and reduced their output costs 33%.