Stop Rolling The Dice On MPS Contract Profitability

When existing deals start draining profits

Imagine running a business where the contracts you’ve already secured quietly start draining your profits—and you might not even know it. In the high-stakes world of managed print services (MPS), recurring revenue should be a reliable win. But without a clear view into contract performance, those agreements can become silent margin killers.

That’s the key message from a recent ECI Software Solutions webinar, which guided attendees through a fun, gameboard-style walkthrough of common pitfalls in the MPS contract lifecycle—and how to steer clear of them using smarter tools.

Mapping margin wins and losses

Led by Jamie Bradley, Product Manager, Field Service at ECI, the webinar brought participants through a digital “game board” of real-world MPS challenges. Each square represented a win or a loss, often triggered by limited visibility, outdated processes, or disconnected systems.

“Your existing MPS contracts should be delivering consistent income,” Bradley said. “But if you’re not tracking what they cost to support, you could be leaking profit without even realising.”

Hidden costs in plain sight

As Bradley explained, Australian office equipment businesses are increasingly branching out into adjacent services like IT support and online sales. Still, MPS contracts remain the financial foundation for many. The challenge is connecting the dots—too many businesses lack centralised systems to link costs for service, parts, and consumables to the actual contract or device.

“You might believe a contract is profitable,” Bradley noted, “but if you’re not checking in regularly, it could be running at a loss month after month.”

Bradley outlined five core cost areas that often fly under the radar: parts, labour, travel, shipping, and supplies. Any one of these can quietly tip a contract into negative territory.

Manual moves that jeopardise profit

Several of the “loss” scenarios showcased the dangers of reactive, manual processes. For instance, depending on technicians to collect meter reads adds extra time, fuel, and admin effort. Even when customers self-report, the risk of delays or errors can snowball into billing problems.

“It’s a vicious cycle,” Bradley said. “Manual meter reads and supply fulfilment not only burn time—they have downstream impacts that hurt other customers’ service levels.”

With a fully integrated software suite anchored by the e-automate ERP, Australian providers can automate meter collection, monitor devices remotely, and streamline toner replenishment. These automation tools reduce cost and feed live usage data directly back into the ERP—giving true contract-level visibility.

From costly callouts to first-time fixes

One of the most expensive problems? Repeat service visits. When technicians show up without the right parts or information, the business takes a hit—not just in wages and travel, but also in lost productivity and customer satisfaction.

Mobile service apps and access to real-time device data can help technicians arrive ready—or even fix the issue remotely. For example, a firmware update can often be pushed from the service desk, saving a trip altogether.

“Every saved service call is a win for your margins,” Bradley said. “And it boosts turnaround times and keeps your customers happy.”

Contract renewals: don’t let them lapse

One board square drew attention to a common but often overlooked problem: lost renewals.

“It can be something as simple as a missed reminder,” Bradley said. “By the time someone notices, that customer might already be fielding quotes from your competitors.”

With automated renewal tracking and a clear view of contract status, teams can engage clients early and proactively discuss options—strengthening relationships while protecting recurring revenue.

Ecommerce: from missed opportunity to margin multiplier

Another scenario revealed a loyal customer choosing to purchase elsewhere—not because of price, but due to an outdated or clunky ordering process.

By integrating ecommerce capabilities directly into their ERP, office equipment providers can offer customers instant access to product catalogues, current pricing, and online self-service ordering. This reduces sales cycle friction while opening up new upselling opportunities based on real-time contract data.

Final square: don’t gamble on guesswork

As the game wrapped up, Bradley summarised the big takeaway: automation, visibility, and integration are essential tools for making MPS contracts more profitable.

“Stop leaving your margin to chance,” Bradley said. “When you have the right systems in place, you can see exactly where you stand—and make smarter decisions that protect your bottom line.”