CTP service Contracts

rmac2125

Active member
We are spending a considerable amount of money on our CTP service contract. Nothing breaks down on the, fairly new, CTP device so justifying spending on a service we hardly use is becoming harder and harder. Just wondering if most users out there have contracts or not on there CTP machine.

My thinking is that if there is a break in the machine the money you didn't spend on the service contract could be spent on the repairs. And if there are no repairs then you save.

Thanks
 
What if something is breaking down? Do you know the costs involved, without having a service contract?
 
We kept the software contract on our ProSetter and Signa Station but dropped the hardware contract . . . (knock on wood) been lucky so far - but since Heidelberg let go most of its service technicians several years ago we have the contact info for what was our primary technician - when we need him he has always been able to get us back up in a hurry and it has saved us a ton of money.:)
 
We kept the software contract on our ProSetter and Signa Station but dropped the hardware contract . . . (knock on wood) been lucky so far - but since Heidelberg let go most of its service technicians several years ago we have the contact info for what was our primary technician - when we need him he has always been able to get us back up in a hurry and it has saved us a ton of money.:)

This is a good way to save money. But not 100% safe.
And no, I am not a Service guy from Kodak, Screen, whatever.
 
This is a good way to save money. But not 100% safe.
And no, I am not a Service guy from Kodak, Screen, whatever.

Just checked to make sure what we've saved and over the 7 years we have had the system we think we saved over $60,000 and have spent about 3,000 in service - and we can get a used model for parts if we need to for about 12,000 - so all in all not a bad deal . . .
 
We are talking 10's of thousands per year. So if you can go two years without service then that pays for the laserhead itself. Yes I agree not 100% safe, but saves a lot of money. Wish they would offer a deal that would pay, at minimum, half back of the service amount not used. They would still make money.
 
One thing about not having a service contract, if you do need service you'll be placed at the lowest priority. And may be down much longer than if you were on contract. We currently do not have a contract. And even though we're saving money by not paying for it, We're probably losing money overall with the lost opportunity cost of being down an extra 5 days a year since we're low priority.

For example let's take a $10 million / year company. Average income per day would be about $35,000. Rough estimate paper and supplies is half that, payroll insurance lease etc is another large quarter. Say average profit per day is around $3-$4,000. And let's say you lose half that, so $1,500 / day extra of being down. (I have no experience in accounting/economics but this seems somewhat reasonable). So in all we're losing about $7,500 per year in lost opportunity cost. Never-mind the overtime pay to get caught back up, the actual service cost on top of the lost opportunity cost, lost goodwill to customers for missing due dates, etc.

Personally I don't think skimping on the service contract is a good idea (especially if a laser goes out). But, I'm not the one signing checks around here. And, of course, not having a backup platesetter is a killer to us too.
 
What your contract says? If you aren't hooked to consumables, then having service contract is a wrong decision. You do not need anybody to tell you this. It is like your own car. Have a few reliable freelance service organisation to take care of the machine. Piority is a marketing word in order to sell you contracts. Piority means being under staff. It isn"t only the contract you pay for. The parts sales are the most source of income for them. Investing on second platesetter as backup will save you time and money to find the used and inexpensive service parts and support. Last words: In today's economy pay attention to business cost or pay the price.
 
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Check and see if you can get a "Parts Only" Service contract. You will save money and the parts are the real killer when it comes to repair. I would not advise not having any kind of service contract at all because as it was stated above you will be the lowest priority to get dispatched a service tech with nothing at all. Heidelberg, Kodak whomever will take care of the clients with service contracts first and rightfully so.
 
We have had a CTP system for about five years. When it came time to renew the service contract we opted to not... and have had only one repair (which didn't cost as much a one month of the contract) So, I say let it go....
 
Businesses are jumping on the service contract bandwagon for everything these days. It's the steady cash flow vs. getting paid by the service. Even heat and air businesses and others are trying to sell contracts. Oh, then there's Adobe, only they call it a subscription.
 
it's been 7 years this year since we own our CTP. only 3 interventions in this whole period, and no service contract: a condenser on the vacuum pump, one laser diode (out of 24) and the recirculation pump on the developer. total spent parts included: around 1200 eur / 7 years, i think it's pretty good
 
Do you have a backup system if one goes down? Service contracts are very exspensive and if your not having problems they can look like wasted money. The problem of not having one is that you are always on the bottom of the repair list and if something breaks it can lead to significant wait times. For most with only one system and no backup getting backup and running is a high priority and having 24-7 coverage is a must. I agree a tough decision when everything is running smoothly.
 
Do you have a backup system if one goes down? Service contracts are very exspensive and if your not having problems they can look like wasted money. The problem of not having one is that you are always on the bottom of the repair list and if something breaks it can lead to significant wait times. For most with only one system and no backup getting backup and running is a high priority and having 24-7 coverage is a must. I agree a tough decision when everything is running smoothly.

With all these opinions about being on the bottom of the call list - they are probably right but from my point of view when Heidelberg (I have no other point of reference) let go something like 75-80% of their service staff a few years back - it really cut down on their ability to respond quickly - we just got our favorite service techs personal # and he has been our go to guy - pretty much same day or next day service and he seems to have a lot of parts available but then he was always a hoarder (lol)

That said if you don't have an independent service tech it would make the decision tougher but then again if the machines are so reliable it seems that the techs could often be waiting for your call - and we believe in service contracts we had one on our Indigo while we had it and we have one on our Xerox currently - you just have to look at the hand your dealt and play your cards accordingly.:)
 
Here is how to eat the cake and have it too. We are an independent 3rd party service provider. We specialize in Kodak CtP. We also service Heidelberg, Agfa, Fuji and Screen thermal CtP devices.
We offer service contracts with annual rollover credit. You pay us quarterly. We service your CtP (parts, labor, remote diagnostics, PM, etc.). After 1 year we calculate how much of the contract you have used (just like on time and material basis). Any unused money will rollover to your next year service contract.
If you need more details, please send me a PM or just call the number below.

Peter Warzecha
Viprofix
Phone: 1-773-545-7700 ext. 217
 

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