Scotland's Third Sector printer & photocopier Supplier

Saving £11k on contract renewal

Midlothian Sure Start, June 2020

MLSS’s Office Manager, Claire, got in touch in November 2019 as they were looking at the replacement of their current copier agreement.

MLSS had been in this agreement approaching 5 years, and it was due to complete in June 2020. The agreement consisted of 3 machines.

The sales manager from their existing supplier had provided end-of-agreement costs based on how much this would be if it was to be replaced by a new deal with them. At no point did they explain any other charges or costs that would apply.

Having explained that SP&C is a Social Enterprise, and sharing our values and vison, we then worked with Claire to review the proposal provided by the existing supplier and also a further proposal from another supplier.

All proposals compared were for 3 machines:

  • The incumbent proposed 1 new machine and the retention of 2 from the existing agreement (that were 5 years old) for another 5-year agreement.
  • The next supplier proposed 1 new machine and 2 refurbished models all based on 5-year agreements.
  • SP&C offered 3 new machines and fixed costs based on a 3-year agreement.
    The Epson units offered also had the benefit of being an environmentally leading product that offered reduced energy, parts, consumables, and technical visits.

SP&C’s proposal saved MLSS ~£11,000 over the contract term (~£14,000 over the alternative supplier) despite being the only one to provide 3 new machines.

We worked directly on behalf of MLSS with the old supplier as they found it extremely difficult to manage the process, and when the incumbent was notified that they had not been successful in retaining the business, they only then announced charges for an extended year due to not officially cancelling the service agreement.

This ‘extended year’ was to be charged at almost £7,000, even though the salesperson had been dealing with MLSS and the new proposal for close on a year.

SP&C assisted in reducing that to just over £800. The supplier also wanted to charge £200 per unit to have the machines returned, which SP&C consequently arranged at a significantly reduced cost. MLSS was also charged £200 per unit to remove the hard drives.

MLSS are so delighted with their new machines that they have since added a further 4 units to other MLSS sites.

As part of giving back to the Sector, SP&C has also offered to assist with the training of MLSS’s in-house IT apprentice by upskilling him in remote management of their devices.

Total Savings:

  • £11,000 on contract lifetime
  • £6,200 on extended year charges
  • £600 saved on return charges
  • help getting out of a disadvantageous contract

= £17,800 retained for Sector service provision (priceless!)

SP&C's proposal saved MLSS ~£11,000 over the contract term (~£14,000 over the alt supplier) despite being the only one to propose 3 new machines.

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