📊Industry Insights19 min read

Managed Print Services: Uncovering the True Cost of Printing (And How to Reduce It by 30%)

A comprehensive analysis of managed print services for enterprise organisations. Covers the full spectrum of hidden printing costs, the MPS operating model, ROI calculations, contract structures, and a framework for evaluating whether MPS is right for your organisation.

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Dreaming Print Solutions

Team

Published 1 November 2024Updated 12 January 2025

Most organisations have no idea what printing actually costs them. When Gartner analysed enterprise print expenditure, they found that printing typically consumes 1-3% of annual revenue—yet fewer than 20% of organisations actively manage this spend. Managed Print Services (MPS) addresses this visibility gap while delivering typical savings of 20-30%. Here's what every enterprise buyer needs to understand about MPS.

The Iceberg Problem: Why Printing Costs More Than You Think

Ask any CFO what their organisation spends on printing, and they'll likely quote paper and toner costs. These visible expenses represent only the tip of the iceberg—typically less than 30% of true print expenditure.

The Visible Costs (What You Track)

  • Consumables: Toner, ink, drums, maintenance kits
  • Paper: Standard and specialty stock
  • Device acquisition: Capital purchases or lease payments

The Hidden Costs (What You Don't Track)

  • IT support time: Printer issues typically account for 5-15% of helpdesk tickets
  • User productivity loss: Walking to distant printers, waiting for jammed devices, reprinting failed jobs
  • Emergency consumable orders: Premium pricing for rushed deliveries when toner runs out unexpectedly
  • Energy consumption: Enterprise MFDs consume 500-1,500 kWh annually
  • Inventory carrying costs: Storage, obsolescence, and capital tied up in consumable stockpiles
  • Vendor management overhead: Multiple suppliers, invoices, and procurement transactions
  • Security and compliance: Unmanaged devices representing audit risks and potential data exposure
  • Fleet inefficiency: Over-provisioned devices, underutilised capacity, suboptimal placement
  • End-of-life disposal: Secure decommissioning, environmental compliance, data destruction

Quantifying the Hidden Costs

Research from IDC and Quocirca consistently shows that hidden costs typically equal or exceed visible costs:

Cost Category Typical % of Total Print Cost Annual Cost (200-person org)
Consumables 25-30% $25,000-$35,000
Hardware/Leases 20-25% $20,000-$30,000
Paper 5-10% $5,000-$12,000
IT Support 10-15% $10,000-$18,000
Energy 3-5% $3,000-$6,000
Productivity Loss 10-15% $10,000-$18,000
Administration 5-10% $5,000-$12,000
TOTAL 100% $78,000-$131,000

Key Insight: A typical 200-person organisation spends $80,000-$130,000 annually on printing—roughly $400-$650 per employee. MPS typically reduces this by 20-30%, delivering annual savings of $16,000-$40,000.

What Managed Print Services Actually Includes

MPS is frequently misunderstood. It's not simply outsourced toner delivery—it's a comprehensive management framework that transforms how organisations procure, operate, and optimise their print environment.

Core MPS Components

1. Device Monitoring and Management

MPS providers deploy monitoring software across your fleet. This provides:

  • Real-time status visibility: Device availability, error conditions, supply levels
  • Usage analytics: Volume by device, user, department; colour vs mono ratios
  • Predictive maintenance: Anticipating component failures before they cause downtime
  • Security monitoring: Firmware status, configuration compliance, threat detection

2. Automatic Consumable Replenishment

Monitoring data triggers automatic supply shipments:

  • Toner shipped when levels reach reorder threshold (typically 15-20%)
  • Maintenance kits dispatched based on page counts
  • Just-in-time delivery eliminates both stockouts and inventory carrying costs
  • Consolidated shipments reduce handling overhead

3. Proactive Maintenance and Support

MPS shifts maintenance from reactive to proactive:

  • Preventive maintenance: Scheduled service based on usage, not breakdowns
  • Rapid response: SLAs for issue resolution (typically 4-8 hours for critical devices)
  • Remote diagnostics: Many issues resolved remotely before technician dispatch
  • Parts and labour included: No unexpected repair costs

4. Fleet Optimisation

Initial and ongoing optimisation services:

  • Assessment: Comprehensive analysis of current environment
  • Right-sizing: Matching device capabilities to actual workgroup needs
  • Consolidation: Reducing device count while maintaining service levels
  • Rebalancing: Ongoing adjustments as organisational needs evolve

5. Reporting and Analytics

Visibility that enables continuous improvement:

  • Monthly usage and cost reports
  • Department-level cost allocation
  • Environmental impact metrics (pages, carbon footprint)
  • Trend analysis and optimisation recommendations

What MPS Typically Doesn't Include

Understanding scope exclusions prevents surprises:

  • Paper: Most MPS contracts exclude paper (though some include it)
  • User abuse damage: Physical damage from misuse may not be covered
  • Network infrastructure: Cabling, switches, and IT infrastructure remain your responsibility
  • Software licensing: Third-party print management software may be separate

MPS Pricing Models: Understanding Your Options

MPS contracts use several pricing structures. Understanding these helps negotiate appropriate terms.

Cost-Per-Page (CPP) Model

The most common structure charges a fixed rate per printed page:

  • Inclusive of: Hardware (often), consumables, maintenance, support
  • Advantages: Simple, predictable, aligns provider incentive with efficiency
  • Considerations: Volume minimums may apply

Flat Monthly Fee Model

Fixed monthly payment regardless of volume:

  • Best for: Organisations with stable, predictable print volumes
  • Advantages: Complete cost predictability; no bill fluctuation
  • Considerations: Volume caps may apply; may not suit high-growth organisations

Tiered Volume Model

Different CPP rates at different volume tiers:

  • Structure: Lower rates for higher volumes (economies of scale)
  • Best for: Growing organisations expecting volume increases
  • Advantages: Cost reduction rewards efficiency improvements

Hardware-Inclusive vs. Hardware-Exclusive

MPS contracts may or may not include device acquisition:

Hardware-Inclusive

  • Devices included in CPP or monthly fee
  • Technology refresh at contract renewal
  • No capital expenditure required
  • Higher ongoing cost but lower upfront investment

Hardware-Exclusive

  • Organisation owns devices; MPS covers only services
  • Lower ongoing cost but capital investment required
  • Technology refresh responsibility remains with organisation
  • May suit organisations with recently acquired fleets

Calculating MPS ROI: A Practical Framework

Evaluating MPS requires comparing current costs against projected MPS costs. Here's a systematic approach.

Step 1: Establish Baseline Costs

Calculate your current annual print expenditure across all categories:

Category Data Source Your Cost
Consumables (toner, drums, kits) Accounts payable records $_______
Paper Accounts payable records $_______
Device acquisition/lease Asset register, lease schedules $_______
Maintenance contracts Vendor invoices $_______
IT support (estimate 10% of helpdesk) Helpdesk ticket analysis Ă— hourly rate $_______
Energy Device count Ă— 1,000 kWh Ă— utility rate $_______
TOTAL BASELINE $_______

Step 2: Obtain MPS Proposals

Request proposals from multiple MPS providers. Ensure proposals include:

  • Monthly or annual fee/CPP rates
  • Scope inclusions and exclusions
  • Service level agreements
  • Contract term and exit provisions
  • Hardware refresh provisions (if applicable)

Step 3: Compare Total Cost of Ownership

Calculate projected MPS cost over the contract term:

  • Monthly fee Ă— 12 Ă— contract years, OR
  • Mono CPP Ă— projected mono volume + Colour CPP Ă— projected colour volume
  • Add any excluded costs (paper, if not included)
  • Add implementation/transition costs

Step 4: Calculate Savings and ROI

Compare baseline to projected MPS cost:

  • Annual savings: Baseline cost - MPS cost
  • Savings percentage: Annual savings Ă· Baseline cost Ă— 100
  • Contract savings: Annual savings Ă— contract term

Typical Result: Well-structured MPS engagements deliver 20-30% savings against baseline costs. For a $100,000 baseline, this represents $20,000-$30,000 annual savings, or $60,000-$90,000 over a 3-year contract.

MPS Benefits Beyond Cost Savings

While cost reduction drives most MPS decisions, operational benefits often prove equally valuable.

IT Resource Liberation

Printer support consumes disproportionate IT resources. With MPS:

  • Helpdesk tickets for print issues drop 70-80%
  • IT staff redeployed to strategic initiatives
  • Reduced after-hours callouts for critical device failures
  • Simplified vendor management (single point of contact)

Enhanced Security and Compliance

Modern MPS includes security management:

  • Firmware updates deployed systematically across fleet
  • Security configurations standardised and monitored
  • Secure print (pull printing) eliminates uncollected documents
  • Audit trails for compliance reporting
  • End-of-life data destruction documented

Environmental Sustainability

MPS supports sustainability objectives:

  • Fleet consolidation reduces energy consumption
  • Default duplex printing reduces paper use
  • Usage reporting enables behaviour change initiatives
  • Consumable recycling programs
  • Carbon footprint reporting for ESG disclosure

Improved User Experience

Well-managed fleets provide better service:

  • Higher device uptime (99%+ typical under MPS)
  • Faster issue resolution through proactive monitoring
  • Consistent device behaviour across fleet
  • Modern equipment with current features

Is MPS Right for Your Organisation?

MPS isn't universally appropriate. Consider these factors:

MPS Is Typically Beneficial When:

  • Monthly print volume exceeds 10,000 pages
  • Fleet includes 5+ networked devices
  • IT resources are constrained
  • Current print costs are unclear or unmanaged
  • Fleet includes multiple vendors/models
  • Security and compliance are organisational priorities
  • Predictable budgeting is valued

MPS May Not Be Appropriate When:

  • Very small fleet (fewer than 3-5 devices)
  • Low monthly volumes (under 5,000 pages)
  • Recent fleet investment with existing maintenance contracts
  • Highly specialised print requirements outside MPS scope
  • Organisation unwilling to standardise on recommended devices

Selecting an MPS Provider: Key Evaluation Criteria

Not all MPS providers are equal. Evaluate against these criteria:

Technical Capability

  • Fleet monitoring technology and reporting capabilities
  • Support for your current and planned device brands
  • Security expertise and certifications
  • Integration with your IT environment

Service Delivery

  • Response time SLAs and track record
  • Geographic coverage for your locations
  • Parts availability and inventory management
  • Escalation procedures and management engagement

Commercial Terms

  • Pricing transparency and flexibility
  • Contract term options
  • Exit provisions and termination rights
  • Volume adjustment mechanisms

Strategic Alignment

  • Understanding of your industry requirements
  • Sustainability credentials and programs
  • Indigenous ownership (for IPP-aligned procurement)
  • Long-term technology roadmap alignment

MPS and Indigenous Procurement Policy

For government organisations, MPS contracts can contribute to IPP targets when sourced from certified Indigenous businesses.

Contract Value Considerations

MPS contracts are valued at total contract value over the term:

  • A 3-year MPS contract worth $50,000 annually has a total value of $150,000
  • This total value determines applicable IPP provisions
  • Contracts $80,000-$200,000 may qualify for direct sourcing from Indigenous suppliers

Dreaming Print Solutions MPS

As a Supply Nation Certified, 100% Indigenous-owned HP partner, Dreaming Print Solutions offers MPS that:

  • Contributes to agency IPP targets
  • Provides enterprise-grade HP hardware and support
  • Delivers the full MPS benefit package
  • Offers competitive pricing against non-Indigenous providers

Getting Started: The Assessment Process

The first step toward MPS is understanding your current environment. A comprehensive print assessment provides the data needed for informed decision-making.

What a Print Assessment Includes

  1. Device inventory: Complete fleet documentation including make, model, age, location
  2. Volume analysis: Monthly output by device, colour vs mono mix, peak periods
  3. Cost modelling: Current expenditure across all categories
  4. Optimisation opportunities: Consolidation, standardisation, and efficiency recommendations
  5. MPS proposal: Tailored service offering with projected costs and savings

Free Assessment from Dreaming Print Solutions

We offer complimentary print assessments for government and enterprise organisations. The assessment provides:

  • Detailed understanding of your current print environment
  • Identification of cost reduction opportunities
  • Optimised fleet recommendation
  • MPS proposal with transparent pricing
  • No obligation to proceed

Contact us on 07 3186 8299 or email benlong@dreamingprintsolutions.com.au to schedule your assessment. As a Supply Nation Certified Indigenous business, government buyers benefit from simplified procurement pathways while accessing enterprise-grade HP solutions and comprehensive MPS delivery.

Tags:
managed print servicesMPScost reductionprint optimisationtotal cost of ownershipenterprise printingfleet managementIT efficiency
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About the Author
Dreaming Print Solutions

Dreaming Print Solutions

Team•Brisbane, Australia

Dreaming Print Solutions is Australia's first indigenous-owned enterprise printer dealer. We specialise in HP enterprise solutions for government and corporate clients, offering expert guidance on procurement, managed print services, and print fleet optimisation.

Supply Nation Certified100% Indigenous OwnedAuthorised HP Partner
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