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Pros and Cons for Unlimited Cost Per Page Agreements

 

An unlimited cost-per-page (CPP) contract for copiers can be attractive for businesses looking to manage their printing costs. Here are the pros and cons:

Pros

  1. Predictable Costs:

    • Fixed Monthly Payment: With an unlimited CPP contract, you pay a fixed amount regardless of the number of pages printed. This predictability can simplify budgeting.
  2. No Overages:

    • Freedom to Print: Businesses don't have to worry about additional charges for printing more than a pre-set number of pages. This is particularly beneficial for businesses with fluctuating or high-volume printing needs.
  3. Maintenance and Supplies Included:

    • All-Inclusive: These contracts will include toner, maintenance, and repairs, reducing the need for separate service contracts or surprise repair costs.
  4. Simplified Management:

    • Ease of Use: Without the need to monitor and report usage for billing, administrative tasks related to print management are reduced.

Cons

  1. Higher Base Cost:

    • Potential Overpayment: If your actual print volume is low, you might end up paying more than you would with a standard CPP contract where you only pay for what you use.
    • All unlimited agreements under go a rigorous audit of your past and current print volume.  Once that base line has been established the vendor will quote a monthly cost base on the audit.  It's not uncommon for  vendor to increase the price by up to 25% to cover unforeseen increases in prints.
  2. Encourages Waste:

    • Lack of Accountability: Since there’s no direct cost associated with printing more, employees might not be as careful with their print habits, leading to wasted paper and toner.
    • Paper is at an all time high cost of .01 - .014 per sheet for low quality paper and .02 - .03 for high end paper typically used in color print devices.
  3. Locked into Contract:

    • Limited Flexibility: You may be locked into a long-term contract with set terms that may not be flexible if your business needs change.
    • Remember  the shut downs of COVID 19 when almost everyone was not printing and clients were locked into high cost contracts with no relief.
  4. Potential for Lower Quality Service:

    • Standardized Service Levels: Since everything is bundled, you might receive a standard level of service that isn’t tailored to your specific needs, potentially leading to slower response times or generic support.
  5. Less Incentive to Monitor Usage:

    • Reduced Oversight: With no direct cost per page, there may be less incentive to monitor and manage print usage, leading to inefficiencies.

My Thoughts

An unlimited CPP contract can be beneficial for businesses with high or unpredictable printing volumes, providing cost certainty and simplifying management.

However, for businesses with lower or more consistent printing needs, or those who prioritize efficiency and waste reduction, this model may result in higher overall costs and less control.

-=Good Selling=-

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Comments (1)

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Vendors who offer an unlimited print program usually build the cost of the copy/ print block into their lease proposal. The customer ends up paying interest on both the copier lease and the copy/print block.

Unlimited print programs usually have a higher monthly rental cost (because of the built in copy/ print block) compared to the traditional lease plus pay per copy/ print program.

If your copier/ print vendor goes out of business, your prepaid copy/ print block now has no value with whatever vendor you can find to service your equipment.

Really big prepaid copy/ print blocks represent service paid in advance for up to five years. Sales reps and business owners get all of that money on month one and get paid big commissions.

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