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 start quietly bleeding your margins—and you don’t even realise it. In the high-stakes world of managed print services (MPS), recurring revenue should be a sure bet. But without clear visibility into contract performance, what looks like a financial win can quickly become a silent liability.

That’s the eye-opener from a recent ECI Software Solutions webinar, which took attendees on a lively, gameboard-themed tour through the pitfalls of the MPS contract lifecycle. The goal? Show how to transform margin risk into reliable profit.

Mapping margin wins and losses

Hosted by Jamie Bradley, Product Manager, Field Service at ECI, the session navigated a virtual “game board” of common MPS challenges. Each square unveiled scenarios, both wins and setbacks linked to visibility gaps, manual processes, and underused technology.

“Your existing MPS contracts should deliver steady, predictable income,” Bradley explained. “But if you’re not actively tracking what it costs to maintain them, you could be losing margin without knowing it.”

Hidden costs in plain sight

As Bradley pointed out, many office equipment firms across the UK are expanding into adjacent services like IT support and online sales. But legacy MPS agreements still serve as a financial anchor for most providers. The challenge? Too few businesses have the centralised systems needed to tie service, parts, and supply expenses directly to individual contracts and devices.

“You might assume a contract is profitable,” Bradley noted, “but without routinely validating its performance, you could be operating at a loss month after month.”

He called out five key cost drivers: parts, labour, travel, shipping, and supplies that can erode margin if left unchecked. Even one out-of-control category can tip a profitable agreement into the red.

Manual moves that jeopardise profit

Several “loss” scenarios on the board highlighted the dangers of reactive, manual processes. Relying on engineers to collect meter readings, for instance, increases fuel costs, admin time, and the risk of errors. Even customer-submitted reads can introduce delays and billing discrepancies.

“It’s a vicious cycle,” Bradley said. “Manual meter collection and supply fulfilment don’t just waste time. They create a ripple effect that can compromise service for other clients.”

An integrated software platform, anchored by the e-automate ERP, businesses can automate meter collection, device monitoring, and toner replenishment. These tools reduce operational costs while linking usage and spend directly to the relevant contract and device in real time.

From costly callouts to first-time fixes

Another frequent margin killer? Inefficient service visits. When engineers arrive without the correct parts or context, it leads to costly repeat callouts: double the labour, double the travel, and unnecessary downtime.

With mobile apps and real-time access to device data, engineers can be better prepared or even resolve issues remotely. Firmware updates, for example, can often be pushed directly from the helpdesk. No van required.

“Every service visit you prevent is a margin win,” said Bradley. “And it improves customer satisfaction by resolving issues faster.”

Contract renewals: don’t let them slip away

The game also highlighted how contracts are sometimes lost not through competition. but inattention.

“Something as simple as a missed renewal reminder can lead to a lost customer,” Bradley warned. “And by the time you realise it, they may already be signing elsewhere.”

With automated contract renewal alerts and a centralised view of contract performance, businesses can engage customers well before the end date and initiate renewal conversations backed by data that protects both the relationship and the margin.

Ecommerce: from missed opportunity to margin multiplier

One square on the board illustrated a scenario all too familiar in the UK market: a loyal customer buys new kit elsewhere because ordering from their MPS provider was too complicated.

By integrating ecommerce capabilities into your ERP, you can offer customers instant access to product catalogues, real-time pricing, and seamless ordering. This not only simplifies the buying process but also enables upselling opportunities based on live contract insights.

Final square: don’t gamble on guesswork

At the end of the gameboard journey, Bradley underscored a key takeaway: visibility, automation, and integration are no longer optional. They are essential for contract profitability.

“Stop leaving your margin to chance,” Bradley concluded. “With the right tools in place, you can know exactly where you stand and take meaningful control of your business performance.”