If you’ve ever looked at your monthly print invoice and wondered, “Why am I paying this much?”, you’re not alone. Many organizations discover far too late that they’ve been somewhat swindled and they are overpaying for their managed print service contracts. Many organizations partner with MPS providers believe that this strategy will simplify their print management and save them money, only to later discover confusing fees, pricing models that quietly balloon over time, or terms that benefit the vendor more than the customer.
Whether you’re locked into a long-term agreement or reviewing new managed print service contracts from potential managed print services providers, understanding the structure of your MPS agreement is the first step to regaining control of your print environment—and your budget. This guide breaks down the key components of a managed print service contract, the red flags and hidden cost to watch for, and how to determine if your current agreement is fair or if you’re stuck in a predatory pricing model and paying far more than you should.
Why Companies End Up Overpaying for an MPS Contract
A managed print services contract outsources the management of your printers, supplies, service, and support to a third-party provider. A good managed print service program helps an organization to save money, reduce downtime, and improve efficiency. However, a predatory MPS program will quietly drain your budget on a one-way trip into the pockets of a provider who certainly doesn’t have the customer’s best interest top of mind.
So, while a managed print strategy should simplify your workflows, reduce costs, and provide predictable spending, many contracts unfortunately do the opposite. These issues often stem from:
- Misaligned print volumes and minimums
- High and/or uncapped annual rate increases
- “All you can eat” flat-rate pricing models
- Vague contract clauses
- Lack of transparency
The first step to regaining financial control is to understand the components of an MPS contract. By understanding the core components of these agreements, you can identify hidden costs and evaluate if your current contract is predatory.
The Anatomy of a Managed Print Service Contract:
Core Components and Potential Cost Traps
Typically, a managed print services contract includes:
- Toner and supplies
- Break-fix service and maintenance
- Parts and labor
- Remote monitoring
- Usage reporting
- Leased equipment (if you have a flat-rate pricing model)
By understanding the core components of a managed print service agreement, you can identify hidden costs and evaluate if your current contract is predatory. Let’s look at the major components of a typical managed print services contract, potential traps associated with that component, and what you can do to avoid them.
1. Base Charges and Minimum Print Volumes or Included Pages
Most managed print service contracts include a base charge, which is a fixed monthly fee that you pay to help cover the costs of supplies and service. This is usually tied to the type of device you have (i.e., a compact desktop printer is going to have a lower monthly base charge than a larger office copier). However, sometimes this base charge can be tied to a minimum print volume or a set number of included pages, and this is where you may uncover that you’re paying for more than you should.
The Trap: If your MPS contract includes a minimum print volume or included pages, you are paying for them whether you physically print them or not. Thus, if your usage fluctuates or is lower than the minimum, you are essentially paying for pages you never print. By building in monthly minimums or included pages, the illusion is that the customer is getting a good deal, but really the vendor is building in a “safety margin”, offsetting their own risk by having you guarantee a predictable revenue stream.
The Solution: Analyze your average monthly print volume over the past year. If you consistently print significantly less than your included pages, you are overpaying for a managed print services contract right from the start. You should negotiate that any minimums align with your actual historical usage or be removed altogether.
2. Cost Per Page (CPP) Pricing
Cost per page (CPP) pricing, also sometimes referred to as cost per click (CPC) pricing, is standard in MPS contracts, and it is the rates that are charged for every single page (or click) that is printed from your printer or MFP. Almost every MPS contract will have one rate for black-and-white printing and one rate for color printing. There are several different red flags to watch out for when it comes to CPP pricing.
Trap #1 – Monochrome vs. Color: Color printing is significantly more expensive than monochrome printing. If a document contains even the smallest amount of color — a blue hyperlink, a corporate logo, or an email signature — the device will register it as a color print. Since color CPP can be 5x to 10x higher than mono CPP, these accidental color prints are a sure-fire way to inflate your bill.
The Solution: Ask your print provider how you can institute a print policy to default to black-and-white printing. This is fairly easy to do and most printers and MFPs today have a built-in tool to allow this (without the need for additional print management software).
Trap #2 – Inflated, Blended, and Overage CPP Rates: Some MPS providers will charge inflated CPP rates compared to market averages. Depending on the type of print device you have (smaller desktop printers have higher operating costs than larger office copiers), the market average for printing in 2025 is somewhere between $0.005 and $0.02 per page for black-and-white printing and $0.07 and $0.15 per page for color printing. Additionally, some providers will charge a blended rate if you have multiple printers or MFPs on the same contract, which could mean you’re paying more for pages printed than you should be. Lastly, if your contract has included pages, and you exceed that volume, you will be charged an overage CPP rate.
The Solution: Do your research on comparable devices to yours to see if your CPP aligns with the average cost. If you have more than one printer under contract, you should inquire about whether you have a tiered or blended rate and ask for a device-level CPP breakdown. You should also discuss any overage rates for exceeding including pages and make sure that those CPP rates are in line with market averages.
3. Escalators: The Annual Rate Hike and Oftentimes the Silent Budget Killers
One of the biggest contributors to overpaying for a managed print services contract is the annual rate increase, often called an escalator. Escalators are clauses that permit the MPS vendor to increase your rates annually. Almost every contract will include escalators, to protect the provider from rising supplies and parts costs year over year. The problem with escalators arises when they are too high or uncapped.
The Trap: A typical contract length is three to five years. A fair escalator clause allows the vendor to raise your Base Charge and CPP rates every year, but usually only once per calendar year and by a capped amount (3-10%, depending on market prices of supplies and parts). When escalators exceed these averages or there’s no cap on how many times they can escalate your price, you’ll find MPS contract rates climbing higher. This compound effect can turn what once seemed like a competitive starting price into an exorbitant one!
The Solution: Always check your MPS contract for escalator clauses and do not accept an arbitrary, high escalator or an uncapped escalator. Negotiate for a low, capped annual increase tied to a measurable, objective index, such as the Consumer Price Index (CPI). If they refuse to cap it, view it as a major red flag.
4. The “All-You-Can-Eat” Pricing Model: A Predatory, Flat-Rate Mirage
Some MPS providers offer an “All-You-Can-Eat” or Flat-Rate contract, promising a single monthly fee for “unlimited” printing and service. While the simplicity is appealing – predictable budget, simple billing, no overages – this model rarely benefits the customer.
The Trap: For the vendor, the flat-rate model is a high-risk gamble. To mitigate that risk, they must calculate the flat fee high enough to cover their worst-case scenario (i.e., you print significantly more than expected, or a machine requires excessive repairs). They effectively bake in a significant safety premium to cover high fluctuations, lost toner, or unexpected service needs. And if your printing needs change and decrease over the term of your contract, you’ll still be paying the inflated fixed price for a volume you no longer need. You will pay a premium for predictability.
The Solution: Flat-rate MPS is like an all-you-can-eat buffet—great for the vendor, expensive for most customers. For most companies, the flat-rate fee is significantly higher than the total cost of a properly managed, pay-per-use CPP model. For organizations that have flexible, seasonal, or varying print needs, this type of model is a terrible fit and very predatory. If the MPS provider you’re working with is selling you on this type of pricing model for your managed print service contract or is unwilling to give you an alternative CPP model, this is a major red flag, and you should consider looking at other print providers.
How to Tell if Your Managed Print Service Contract is Overpriced or Predatory
If you’re concerned you have a predatory managed print service contact and are overpaying, look for these tell-tale signs:
- You pay for more pages than you print.
- Your contract has escalators over 5%, on average.
- Your contract escalates more than once per year.
- Your CPP is above market averages.
- You have an all-you-can-eat pricing model.
- You inherited the contract and don’t understand its structure.
- Your invoices fluctuate without explanation.
- You can’t get clear usage reports.
- You’re paying for devices that are rarely used or already retired.
If two or more of these red flags apply, your organization is very likely overpaying for a managed print services contract, and it’s time to act!
What a Fair MPS Contract Should Look Like
A customer-centric managed print service contract can bring real, tangible benefits to your organization, including cost savings. A fair MPS contract should include:
- A base charge aligned with device size
- No monthly minimums or included pages, or monthly minimums/volumes that are tailored to actual print usage
- Reasonable CPP rates aligned with industry norms
- Transparent, capped escalators
- No hidden fees or vague contract terms
- Annual reviews to ensure you stay optimized
- Right-sized devices for each department or workflow
- Transparent reporting on service, supplies, and volumes
Ready to Find Out if You’re Overpaying?
If you’re starting to suspect that you’re overpaying for your managed print service contract, now is the perfect time for a print audit and contract analysis. Use print management data to establish your actual print volume over the last 12 months to 24 months. It’s also important to do a detailed contract/invoice audit – look for discrepancies between what you’re contracted for and what you’re billed for. Take a look at what your contract says about escalations, and review how your billing has changed over the course of your contract. With a clear understanding of your base rates, CPP, escalators, and hidden fees, you can take control of your print environment and avoid unnecessary costs.
Whether you’re renegotiating your current agreement or exploring new providers, transparency and data are your best tools. Don’t hesitate to request a contract review or comparative quote—you could save thousands annually with a more transparent and fair managed print service contract!
If you’re not sure where to start, please feel free to reach out to our team! We’d be happy to help guide you through the process and uncover any red flags in your existing managed print services contract through a complimentary, detailed print assessment.
