A COMPLETE GUIDE TO SMALL DEVICE REPAIR OPTIONS

Transcription

1 A COMPLETE GUIDE TO SMALL DEVICE REPAIR OPTIONS CHALLENGES: High repair or replacement costs can lead to reduced profitability. Few companies understand the range of repair options available to them. Many companies turn towards disposal rather than repair, leading to increased costs. KEY TAKEAWAYS: It is important to have the right stakeholder diagnose a device s repair needs. Repair options can be divided into three categories. Many factors must be considered when determining the most cost-effective repair option. 1

2 CONTENTS 1 INTRODUCTION 3 2 BREAKING DOWN THE OPTIONS 4 3 ADVANCED UNIT EXCHANGE 8 4 CONCLUSION 9 5 ABOUT BLM TECHNOLOGIES 11 2

3 1. INTRODUCTION Introduction One of the biggest drivers of profitability is the ability to control costs and even lower them on many internal services. One way of keeping costs down and remaining profitable is by using affordable repair solutions when small devices break down. It is not necessary to throw away or replace a device as a result of one breakdown. Most businesses, regardless of industry, rely on certain small devices to perform key tasks. Here is a summary of a few key small devices that are prevalent in common industries: Retail: receipt printers, pricing guns, tagging guns, tape dispensers, computers, printers, scanners. Food: slip printers, receipt printers, tablets, pagers. Finance: check scanners, EMV issuance machines, receipt printers, currency counters, document scanners, printers. Small devices are used so often across every industry that it is easy to take them for granted until one fails. When devices break down, having a timely and cost-effective repair plan in place becomes critical to avoiding costly downtime. With the small profit margins found in the food and retail industries, for instance, being able to repair small devices quickly and affordably is an important strategy for maximizing profitability. In the following sections, we will examine the variety of ways small devices can be repaired, the pros and cons of each method, and the relative cost of each option. 3

4 2. BREAKING DOWN THE OPTIONS Breaking Down Device Repair Options The broad options of what to do when a business device breaks down can be broken down into three main categories: On-site repair Off-site repair Off-site repair with advanced exchange With on-site repair, the most important factor becomes determining whether an in-house or thirdparty technician performs the repair. Off-site repair includes the logistical considerations of how the device makes it to the repair shop, while off-site repair with advanced unit exchange involves the shipping of a broken unit out of the business in conjunction with the shipping or delivery of a new unit to the business s location. Each of these options contains different agreements and options that fall under their umbrella of service. Every repair option also has advantages and disadvantages to consider. On-site Off-site Off-site + advanced exchange 4

5 2. BREAKING DOWN THE OPTIONS Device Repair and the Burden of Proof Let s look at a common small device repair: replacing the thermal head on a receipt printer. This will help us understand how trusting the right person with the burden of proof regarding repair options is actually the first decision to make when a device breaks down. When a receipt printer stops working, the ability to perform a repair would first require getting in touch with someone with the knowledge and experience to determine why the device failed in the first place. If a business employs an individual with a working knowledge of how receipt printers work, they might be able to investigate whether or not the thermal head needs to be replaced or simply cleaned. This is where the first factor of cost enters the equation. The cost to replace a thermal head part may range anywhere from $50 $400 dollars depending on the make and model of the printer. However, if the head only requires a thorough cleaning to begin working again, this could be performed effectively with a product-specific cleaning wand costing less than $20 to keep in stock. This is where the burden of proof falls upon the technician to determine the necessary repair path. Choosing to replace a part that only requires maintenance is a costly decision. However, attempting to clean a part that requires replacement wastes valuable time and keeps the device out of commission even longer. 5

6 2. BREAKING DOWN THE OPTIONS What we see from this example is that the individual who assesses a broken device can start the repair process in the right or wrong direction. Here are some of the individuals that businesses enlist to make repair decisions when a small device breaks down. The business owner: has the most at stake in regards to the broken device. The employee who ordered the device: may have access to important warranty information. An internal member of the company s IT department: may have experience troubleshooting the device in question. An experienced third-party technician: a qualified individual with experience and specific knowledge related to the make and model of the device in question. While bringing in an experienced technician costs more from an hourly point of view, it has the potential to be the most cost-effective choice from a productivity standpoint. In certain cases, online videos or device manuals can be helpful resources when unqualified individuals are asked to troubleshoot malfunctioning small devices. A business must weigh the risk of letting an untrained person work on a device versus the cost of hiring a professional who is trained to perform the repair correctly. Some technicians also include an additional travel fee between $15 $35, depending on distance traveled, tolls, bridges, and traffic. Calling a technician to make repairs on-site can be expensive if diagnostics can t be performed in a timely manner, and the device can t be repaired quickly. If a company anticipates having multiple repair calls each year, one way to save money over time is by obtaining a contract service plan. These plans often go beyond the scope of simple repair or service calls by including: Equipment setup Device delivery Mass installations IT and other staff training Device network management For fast growing businesses, or for those industries that rely on the frequent use of small devices to perform daily tasks, investing in a customizable and comprehensive service plan can cover many critical bases for a reasonable monthly fee. On-site Repair Options and Cost For industries that don t have the luxury of having small device technicians on staff, the safest option when repairing equipment on site is hiring a third-party technician to come and repair broken machines. This may be the only option for large devices such as office printers, computers, and servers. According to Thumbtack.com, the average hourly rate for repairing a broken laptop at a home or office is $ Repair costs are usually calculated in one of three ways: A flat rate per repair plan A time plus materials repair plan A contract service plan While bringing in an experienced technician costs more from an hourly point of view, it has the potential to be the most cost-effective choice from a productivity standpoint. 6

7 2. BREAKING DOWN THE OPTIONS Off-site Repair Options There are many options for businesses seeking off-site repair for defective small devices. These options vary widely depending on the repair provider, but may include: 3-5-day quick turnaround repair 7-10-day basic repair Advanced unit exchange Not all devices can be repaired in a quick turnaround situation. Depot repair distinguishes itself from mailing to a general hardware or mom and pop repair shops in a few ways. Namely, depot repair service usually has multiple locations across the country and certified technicians performing the required repairs. While mom and pop style shops may be local to a business and have experience repairing a specific device, they often lack the ability to source manufacturer parts quickly. The goal of a depot repair service is to be affordable, convenient, and customizable. Many depot repair services feature ongoing maintenance as a customizable option. These services also have the benefit of working with current warranties or extended warranty programs. Brenda Gisse, Vice President/eBanking Manager and Information Technology Security Officer of South Sound Bank uses a depot repair service for her scanner equipment, stating, It s great that we always have confidence that the equipment will be well-tracked and repaired quickly. Devices well-suited for depot repair services vary by industry, but some of the most common devices to utilize this method are: Payment and transaction equipment Monitor, computer, and mobile device screens Receipt and slip printers Portable scanners and tag machines Repairs can be incredibly taxing on IT departments, and a company s staff members often don t have the bandwidth to deal with fixing devices such as tablets and portable screens. Eric Goodness, Vice President of Research for Gartner s Technology and Service Provider s Unit, says, It is so much easier and less expensive to push the life cycle to a third party. Advanced Unit Exchange is the newest off-site repair option and will be examined in detail in its own section to follow.! 3-5-day quick turnaround repair 7-10-day basic repair ERROR Advanced unit exchange 7

8 3. ADVANCED UNIT EXCHANGE When is Advanced Unit Exchange the Best Repair Option? While a three-day turnaround might not be a disastrous amount of downtime for some less-utilized business equipment, there are many small devices that can t afford to be out of commission for hours let alone days. For these critical devices, there is a repair method known as Advanced Unit Exchange (AUE), sometimes referred to as a hot swap. If a business has an AUE agreement, they notify their provider when a device breaks down and the AUE fulfillment provider immediately ships a matching new device on the next business day. When the company receives their new device, they send the broken machine to the AUE provider in the same box that the new device arrived in. Device downtime is dramatically decreased using AUE. This also helps cut down on package waste and shipping costs. Additional benefits of AUE include: Removes the need for an on-site inventory of spare devices or replacement parts. Maintains a supplier for new equipment and repairs. Can be used in B2B arrangements and shipped to a supplier s customers. Reducing the repair cycle time saves a business money. This is the primary goal of Advanced Unit Exchange. 8

9 4. CONCLUSION Conclusion For business owners, optimizing their small device repair cycle is critical to standing out from the competition, as well as streamlining production and reducing waste. Companies that truly wish to perform their best must conduct robust research and develop standardized processes for the repair, refurbishment, and replacement of daily use small devices. Small device repair solutions that are cost effective and efficient are key performance indicators for inventory and supply chain management, worker efficiency, equipment purchasing, and life cycle management. 9

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11 5. ABOUT BLM TECHNOLOGIES About BLM Technologies At BLM Technologies, our mission is to free your time and utilize our 40-plus years of information technology and financial institution experience to give you a cost-effective, single-source solution that meets your critical needs now and in the future. We provide expert technology and unmatched client support across multiple industries and business functions. In many of the industries we support (e.g. financial), our client base includes the vast majority of the leading companies. We look forward to becoming your instant EMV issuance partner. Learn more at blmtechnology.com and follow us on and LinkedIn. Ready to learn which small device repair option is best for your business? BLM Technologies can help. Contact us today to find the most cost-effective solution for you. sales@blmtechnology.com blmtechnology.com th Ave N, Ste 600, Plymouth, MN