Managed Print Dealers have long positioned themselves as full-service providers, bundling hardware, consumables, and break/fix support into one predictable monthly payment. For many customers, this has been an appealing model: a single point of accountability, fewer surprises, and fewer vendors to manage. But beneath the surface, this approach has a critical flaw—one that exposes a unique opportunity for OP dealers.
At the heart of the MPS model is the service technician. These in-house tech teams are responsible for everything from routine maintenance and toner replacement to troubleshooting error codes and replacing key parts. In theory, this builds customer loyalty and ensures device uptime. In practice, however, it creates an expensive and inefficient operational structure that becomes increasingly difficult to sustain.
The challenge lies in technician utilization. These skilled employees are rarely working at full capacity. Unlike call center staff or warehouse pickers, techs can’t simply move from one task to the next without delay. They spend time driving between customer sites, sitting in traffic, waiting for access, or even showing up to calls that don’t require a repair at all. As a result, actual repair time may represent just 40% to 60% of their total paid hours.
This underutilization adds up. Dealers must still pay salaries, benefits, vehicle costs, fuel, insurance, and administrative overhead. To cover these costs, they often inflate the monthly charges embedded in their MPS contracts. In other words, the customer is paying for a bloated support structure—whether they need it or not.
And as print volumes decline, the economics become even harder to justify. Devices are more reliable than ever. Error rates are lower. Predictive software can catch issues early. Yet the fixed costs of the MPS service model remain. That means dealers are left with the worst of both worlds: less service demand but the same labor costs.
Meanwhile, the shift to remote and hybrid work has further complicated the equation. Many employees now work from home, where on-site service is logistically difficult or financially unjustifiable. Managed Print Dealers were built to serve centralized office environments—not dozens or hundreds of dispersed home offices. This creates a service gap that their current model struggles to close.
This is where OP dealers, supported by Extended Service Warranties, can turn the tables.
Rather than building costly in-house service operations, OP dealers can offer device protection through a subscription model tied to a national network of certified technicians. These third-party service providers already have geographic coverage, scheduling systems, and expertise in place. They are dispatched only when needed, and the cost is built into the warranty fee. No idle time. No waste. No overhead.
It’s a more flexible, modern approach—one that matches today’s distributed work environment. Customers still get the peace of mind they want, but without the burden of subsidizing a dealer’s underused workforce.
From the dealer’s perspective, this is liberating. There’s no need to manage HR issues related to service staff, no ongoing training burden, and no trucks to maintain. Instead, the dealer can focus on selling, onboarding, and supporting customers through smart, automated systems. The warranty program takes care of the rest.
In fact, many dealers may choose to start with a break/fix, time-and-materials approach through the same national network before evolving to a warranty subscription model. This keeps things simple, especially when just beginning to offer service. Either way, the economics are favorable.
Let’s not forget that the end customer often has little interest in how the service is delivered—they just want a quick resolution. Whether the tech wears the dealer’s uniform or not is immaterial. What matters is that the problem is solved, the downtime is minimal, and there are no surprise bills.
This is the fatal flaw of the MPS model: it was built for a world of high-volume, centralized printing. That world is disappearing. What’s emerging in its place is a need for leaner, smarter, and more flexible support options that reflect how and where people work today.
OP dealers who embrace Extended Service Warranties aren’t just catching up to MPS providers—they’re leapfrogging them. By skipping the high-cost infrastructure and adopting a just-in-time service strategy, they can offer equal (or better) support at a lower cost, while keeping their operations light and scalable.
In the next chapter, we’ll explore how this shift enables OP dealers to deliver “MPS-level” support without MPS-level complexity—and how ESWs unlock a new set of capabilities that were once out of reach.
Related Reading:
How ESWs Enable OP Dealers to Compete with MPS: Extended Service Warranties (ESWs) allow Office Products dealers to offer scalable, professional support without the complexities of traditional MPS programs.