|
Trust
But Verify
The most commonly discussed MPS topics I see
online, hear at seminars, or are asked about
personally are: Where should I buy my
compatibles? What MPS software works the best?
What pricing should we use per click?
A
question I feel is of greater relevance that I
almost never hear mentioned is: How are you
monitoring and adjusting the click default
settings on your equipment? If you are not even
sure what a click default setting is, read on.
The importance of being aware of and properly
adjusting the click default setting on all
equipment is worth your ongoing inspection. The
default determining switches are usually mounted
on the main printer circuit board or can be
electronically programmed through the operations
panel. In either case, the servicing dealer can
set the default click setting to register once for
each piece of paper exiting the machine or
differentiate the clicks by the size of the paper
and if 2 sided copying is being used. Consider the
difference a click can make when a customer is
running 2 sided 11 X 17 full color versus 1 sided
8 X 11 monochrome.
Most digital equipment
now offers multi-lined printouts denoting usage of
monochrome, color, size of print image, dual sided
paper usage, misfeeds, next PM due, etc. Older
equipment comes with dual meters denoting color
usage and monochrome.
To maximize recovery
of printing/copying cost, dealers must make sure
the counter default setting will click multiple
times for imaging that is larger than 8.5 X 11 and
are 2 sided imaging. Just because someone in your
service department says your default settings are
being monitored is not enough proof for me. There
should be ongoing, independent testing of each
piece of equipment that leaves your building. As
President Ronald Reagan often said, “Trust, but
verify.”
Additionally, every piece of
equipment being included in a managed print
agreement should be tested, and adjusted if
necessary, for the appropriate default setting on
click readings. Once in the field, each tech who
services a piece of equipment that has 8 X 14 or
11 X 17 paper in it should be required to test to
see how the default setting is counting these
larger size printed images. Any equipment that has
the ability to run 2 sided copies should also be
tested to make sure the default is correctly set
to register 2 clicks for each two sided 8.5 X 11
or 4 clicks for 11 X 17 and 11 X 14. Once the
techs get in the habit of verifying the click
defaults, it takes less than 2 minutes to
completely verify and document the click default
settings.
Upon introduction of each new
piece of equipment, our setup shop techs figure
out how the default is set and how to read the
click printout page. Recently four of our most
experienced techs could not make any sense out of
the count printout page on a new model of high
speed color printer we were setting up.
As
an authorized sales and servicing dealer, we
called the OEM’s Technical Hotline for assistance.
After waiting the extended length of time on hold,
we asked for an explanation of the click readout
page. We were told, “You are the first dealer to
call for an explanation. The machine was
manufactured by another company. It was engineered
in Japan, manufactured in China, and the click
explanation had been translated into Japlish.”
Jokingly there was some further explanation
involving an abacus theory. To make a very long
story short…It took 5 days, 7 phone calls, 8
emails and translation from Chinese to Japanese to
English to figure out the most convoluted print
explanation page I have ever seen. We had to reset
the defaults to differentiate color and two sided
printing from the one sided monochrome which was
originally programmed as the default click
setting.
The scariest part of the story
is, according to the OEM hotline techs, we “were
the only dealer who had requested an explanation
of how to read the printout and reset the
defaults.” The click default setting is also the
digital signal that hooks into the MPS software
that reports clicks and bills the end user. I
firmly believe without the lengthy explanation, no
clerk, customer, sales rep or tech could have
dissected the utterly baffling set of numbers and
letters on the printout page. Nor could anyone
figure out and test how the defaults were set or
how our MPS software would invoice the clicks.
This brings us back to the importance of the
defaults. The installing, or MPS servicing dealer,
has the right to have the final decision on how
different sizes of paper are counted and
ultimately billed. Without being aware of what the
click default setting represents, the MPS
servicing dealer may be missing thousands or
millions of legitimate billable clicks each month.
If you believe your dealership has the right to
charge more for an 11 X 17 full color 2 sided copy
than a single sided 8.5 X 11 monochrome, you need
to consistently monitor the default settings on
all the equipment you have under any type of
servicing agreement.
When the market is
forcing dealers to charge under a penny per click
for full service and supplies, there is no room
for mistakes. Your dealership has the absolute
need to make sure you are being paid additional
revenue for color, larger than 8.5 X 11 and
two-sided prints/copies.
Equally important
as understanding the importance of the default
setting is replacing the use of the word Copy or
Print with the term Click on all your MPS and
other servicing agreement documents.
Make
sure your MPS, CPC, or other service agreements
specify CLICKS. Never sell copies or prints. When
making a full color 11 X 17 double-sided image you
should register 4 color clicks. That is one click
for each of the four 8.5 X 11 sized images. As an
example: using .07 cents per color click versus
.008 cents per single monochrome click. 4 color
clicks = .28 compared to one monochrome click at
.008. There is a difference of .272 in cost. A
customer who makes 2000 two sided 11X 17 color
copies each month should pay $560. Over the course
of a 60 month lease the dealer would receive
$33,600.
If the default setting was set
for a single exiting monochrome sheet at .008 the
cost for 2000 sheets per month is $16. Over a 60
month lease the billable cost is $960. This equals
a billable difference of minus $32,640 over a 5
year lease. If you have 100 machines in the field
with a similar incorrect billing default, the
price differential is a net loss of $3,264,000
over 60 months. Those of you who have a thousand
machines under MPS contracts can simply add
another zero to your lost revenue potential.
The click default on copiers, printers, and
MFPs is a mystery to most. I have seen the same
OEM make and model of equipment come in with
different default click settings. Too many dealers
are allowing their service and supply profit
margins to be determined by a nameless worker on
an assembly line 6000 miles from your business who
randomly decides how the click defaults are set.
An internal company policy regarding the checking
of the click default setting is imperative to
maximizing MPS revenue. Each new piece of
equipment must be tested to determine when and how
clicks are registered. When setting up pricing
criteria on new color equipment make sure you
understand how color, monochrome, larger size
paper and 2 sided images are registered on the
equipment, your monitoring software and actual
billing. I challenge you to ask a couple questions
of your service staff, and then go test your
showroom equipment yourself.
Servicing
dealers must be proactive and knowledgeable about
each machine’s click default settings. Dealers can
insure they are receiving appropriate click
revenue from every image produced that is covered
by their MPS or other servicing agreement by
vigilantly monitoring and adjusting click default
settings.
Ronelle Ingram, author of
Service With A Smile, also teaches service
seminars. She can be reached at
ronellei@msn.com.
|