Let’s talk about the dynamics of a Service Contract:
Repairs – The requirement of a professionally trained, well experienced technician, to troubleshoot/diagnose symptoms, determine the problem and effectively establish a repair.
Consumables – The requirement to have ongoing supplies/components that operate the machine, which have a life expectancy and frequently need replaced.
Preventative Maintenance – A specified interval of time between Maintenance checks and cycles, where: inspections, adjustments, cleanings, consultation and calibrations occur.
Contractual Obligation – The final piece which ties it altogether. Who does what, who pays for what, and which party is obligated to which portion of the responsibilities.
Here’s where the rubber really meets the road. Most organizations enter into an agreement with a certain expectation, only to find their image and the supporting dealer’s image, don’t quite mesh.
Although the machine is usually repaired when needed, and the supplies are given, the overall costs and the even-flo of responsibility can be somewhat murky at times.
Let’s break it down. Operators are responsible for maintaining the machines, the standard operator’s cleaning/maintenance, and the proper use of the machine. Any deviation from this, and the costs associated with repair or clean up can be solely up to the organization’s responsibility.
Estimated usage of consumables. Dealers mostly use around a 65% fill estimate when determining how much consumables will be used by organization. Here’s the trouble with that. If you go under, you’ve already overpaid, and if you go over, then very quickly the dealer’s cost analysis will reflect that, and your price will go up. Furthermore, most maintenance agreements have an automatic adjustment of increase every year. That increase can be as high as 15%.
Let’s also assume you want to keep the machine longer than 3 years. Look for the dealer to cut you off very quickly and tell you they no longer support the machine, and you’ll have to upgrade to the latest model if you want to keep a service contract.
This is why BIZ PRO avoids service contracts when possible. They’re not fair to the organization, and they certainly lack any real coverage. Most people use them, because it’s been the “standard” in business for a long time.
The time to break away however, is NOW!
BIZ PRO knows that the average dealer makes around 65% profit on service agreements. Knowing this, we feel like we can train you well enough to help you save around 40% of your expenses by following simple guidelines and standards. We teach you how to become Independent and save money, time and hassle.
Our strategy starts by only selling certain model of machines. This way, we can ensure the client has a very modular, friendly and easy to maintain machine. We help you strategically find a source for your consumables, usually saving you as much as 45% to 55% over what dealers will sell it to you “inside” of a contractual agreement!
Last, we create a smarter way to interact with your servicing/supporting dealer. We help you set up and maintain strict intervals for preventative maintenance, work with you over the phone in troubleshooting a problem, and only if all the above fails, a technician is dispatched for a service call to your office.
Our clients, like most, were very reluctant to move away from the standard “umbrella protection” that has been the model for years. But, once they did, they enjoyed more consistent up time, much greater savings, and more “control” over their machine’s health and performance. Our clients save anywhere from 35% to 70% off their normal bills they received from other dealers. And the most important aspect is, they had a much better image of what to expect, and what they received from this new style of support.
Furthermore, we don’t kick you off a service contract after just 3 years. We don’t demand you upgrade equipment. We’ll service your machine and help you keep it working up to manufacturer’s specifications so long as parts and consumables have ample availability. And don’t be persuaded by dealers who say that parts or consumables are hard to find after 5 years. Most manufacturers guarantee parts for 7 years, and most machines have good parts availability through alternate sources for 10 to 12 years.
Also, don’t let the other dealers tell you that security concerns or feature concerns should be a reason to upgrade. Most machines will have security support for at least the full 7 years mentioned above, and some manufacturers will go as far out as 10 years on software and security upgrades.
Companies that do mass printing volume actually save the most. Clients that do moderate or average volumes save the least. And clients that do very minimal printing, you are the ones most likely paying too much money for the limited consumables and risk a dealer faces with your equipment. In all cases, we have found it to be a win/win for both the dealer, as well as the organization. If you’ve read this far, you should call us. we would be glad to discuss your individual cases and challenges.
As the owner of BIZ PRO, I have over 27 years of experience in this industry. My knowledge formed from both high level positions within the corporate world of office equipment, as well as the day to day workings of technical support and consultative representation for organization’s technology challenges. I know every single aspect of this business and have held longstanding positions in all of them. I work with small organizations running out of people’s basement, up to fortune 100 and federal government accounts. There’s not too many unique challenges I haven’t faced, conquered and helped a client overcome. Let’s work together to get your organization capitalizing on today’s technology!