Let’s take a look at actual numbers

 

The most inspiring thing I saw over the holiday season has to be children enjoying the snow, at our local park. The children rolled in the snow and built snowmen, I loved watching the unrestrained joy each child took when discovering snow for the first time. A few children cried, others laughed, but they never stopped playing, discovering, and embracing each new experience for what it was, a chance to learn.

This takes us to today’s topic. What do you need to know before negotiating with your printer/copier supplier

 

Now we have our print assessment, now what??

The print assessment will propose ways to :

  • reduce printing cost
  • reduce the number of desktop printers.

 Here are a few facts that your supplier may not tell you. The price for printers, multifunctional devices and copiers in the industry are lower today than 3 to 5 years ago. In general, your overall TCO (total cost of ownership) will be less for the following reasons:

  • the equipment cost less
  • equipment more reliable 
  • fewer service calls
  • toner cost less
  • fewer mechanical parts
  • more printing less copying
  • no scanning when printing

 When looking at the TCO (total cost of ownership) the cost of the equipment is only part of the overall cost. You need to know how your Cost Per Copy (CPC) will affect your bottom line.

 If your supplier is not making money on the equipment where are they making their money??

  • 1 colour & 1 B/W MFD
    ·         monthly print volume is
    ·         15 000 colour prints|
    ·         60 000 black/white prints
    ·         CPC cost
    ·         12 cents per colour page
    ·         1.2 cents per B/W page
    ·         50 page per minute Colour MFP
    ·         price $22,000.00
    ·         70 page per minute B/W MFP
    ·         price $ 25,000.00

If your supplier is not making money on the equipment where are they making their money??

Machine cost
$22,000.00 + $25,000.00 = $47,000.00

Printed pages over 5 years
B/W prints =    60K x 60 months= 3600 K
Colour prints = 15K x 60 months = 900 K

CPC cost over 5 years
B/W costs =   3600 K x 0.012 = $ 43,200
Colour costs = 900 K x 0.12 = $ 108,000
47,000 + 43,200 + 108,000
TCO = $ 198,200.00

The CPC in the market will be less compared to 5 years ago so let’s reduce the colour CPC to 8 cents and B/W to 1 cent.

B/W cost = 3600 K x 0.01=    $36,000
Colour costs = 900K x 0.08 = $72,000
47,000 + 36,000 + 72,000 =
TCO =$ 155,000

Saving equal

198,200 – 155,000 = $43,200.00

It is important that your supplier explains the cost over the length of the contract.

Don’t be afraid to ask questions, if you don’t understand they are not explaining it properly.

Remember you are the one in charge.

You are the customer!!!