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Challenge: Find The Printer That Kills Your Profits
Would you know if a single printer was siphoning profits from an equipment lease contract? Let’s take a look at three identical printers on contract that couldn’t be more different in their profitability.
A tale of three printers
Imagine you have a customer with 20 printers on contract, including these three seemingly identical devices. They’re all priced out similarly, assuming an average rate of toner consumption.
- Printer #1: Runs at expected usage levels, consuming toner and requiring service within the forecasted budget.
- Printer #2: This printer was relocated to the finance department and has started to print greater volumes and greater page coverage, burning through toner at twice the expected rate.
- Printer #3: This device had a few minor recurring issues, requiring visits from your technicians and replacement parts.
We can easily assume that Printer 2 and Printer 3 are less profitable than Printer 1. So problem solved, right?
Not really. There is no data here that tells you:
- What is the exact impact on profits? Do you need to adjust pricing?
- What about the rest of your fleet? Do you have the same insights to accurately assess the profitability of every device on every customer site?
You're not alone
According to the Managed Print Services Association (MPSA), nearly 60% of office equipment dealers struggle with surprise supply costs that eat into their profits. Disconnected systems make it nearly impossible to track profitability at the device level.
The cost of contract underperformance
This contract assumed an average toner consumption per device. But when a single printer requires more frequent toner shipments, costs for that device skyrocket!
If another device has a few repeated service issues, your labor expenses start adding up quick Over time, one or two underperforming devices can wipe out the profits from an entire contract.
One printer alone could run well over $15,000 in unplanned toner and service expenses over a year.
So which printer was the profit killer?
In this example, which printer was the one that killed the profits on that contract?
The answer?
None of them!
(Our apologies. it was a trick question!) This dealer received automatic contract profitability insights that provided early detection of cost issues, enabling contract terms and supply order optimisation, before profits were impacted.
How to get early profitability insights
Fixing profitability leaks starts with integrating your ERP with device management and financial data, turning your ERP into a central hub for calculating per-device profitability, so you can:
- Track device meters and supply usage automatically.
- Identify high-cost devices before they erode margins.
- Adjust pricing based on actual usage trends.
- Optimise supply fulfilment to reduce overspending.
The right ERP centralises all the data needed to optimise MPS revenue. Without this level of control, contract profitability is at risk.
Take control of your profits
Gain a clear view of your costs to protect your margins. Relying on spreadsheets or disconnected data is a gamble with your profitability. An industry-tailored ERP provides the visibility and control needed to guarantee every device under contract is profitable. Don’t allow a single printer to wipe out your margins—get the right tools to safeguard your business.
Profitability reporting is our secret sauce
Let us show you why e-automate dealers never worry about profit leaks.
ECI Staff Contributors love to share their insights and expertise on a variety of topics including sales, marketing, cloud, ERP, and SMB development as well as on product specific education. With offices throughout the United States, Mexico, England, the Netherlands, Australia, and New Zealand, more than 40 employees contribute to blog on a regular basis.
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