Did you know that printing is typically the third highest business operating expense, behind
rent and payroll?
Yet, despite printing being such a significant ongoing expense, many businesses are still
purchasing printers and multifunction printers (MFPs) simply based on sticker price, without
considering what impact these devices can have on their operating expenses over
their lifetime.
While purchasing or leasing a lower cost device may look good on your capital expenditure report, the truth is you might be saddling your company with high running costs, time-wasting user interventions and a large amount of office waste that’s harmful to the environment.
Fortunately, you can avoid burdening your company with years of unnecessary expenditure and wasted time by asking one crucial question before you purchase any new device:
WHAT IS THE TOTAL COST OF OWNERSHIP?
The Total Cost of Ownership (TCO) is what a printer or MFP really costs your business
over its entire lifetime. On top of the upfront costs of purchasing or leasing you are also factoring what it costs to operate and maintain the machine over time.
While consumables are typically the biggest component of a device’s TCO, there are many
other factors that have to be considered when trying to determine the TCO of a device.
Before you sign on the dotted line, be sure to ask yourself and your supplier the following
questions.
THINGS TO CONSIDER WHEN CALCULATING YOUR DEVICE’S TCO
1. WHAT ARE THE NEEDS OF MY BUSINESS?
a. How many pages do you print or copy per month?
If you have implemented a network device management solution, this information will be
readily available. If not, tracking your paper purchases will give you a good estimate
of your print and copy numbers. Determine how many cases of paper you purchase each month . One case of Letter size paper equals 5,000 pages.
b. How many Colour pages do you print or copy per month?
According to Gartner Group, printer and MFP supply budgets are growing every per year partially because of the rise in colour print volumes.
Most network copiers or printers quickly enable you to determine your actual print volumes. If you have no clue what your colour output is, you may need to do a small survey to ask staff to assess the percentage breakdown of colour to black-and-white printing they’re doing.
Be especially aware of low cost colour inkjet printers connected to single computers via a USB cable as these devices are much more expensive to operate than laser printers.
c. How long do you plan on owning the device?
Before you commit to a purchase or lease, it’s advisable to have an idea of how long you intend on keeping the device. Most businesses expect to keep their machines for an average of five years.
These three numbers will not only ensure you have an accurate TCO, they will also help enormously when considering the specifications of the devices and whether they can cater to the needs of your
business.
2. HOW MUCH DOES THE DEVICE COST TO BUY OR LEASE?
Now that you’ve worked out your typical monthly output, you can use that information
to narrow your list of potential devices down to those that are most appropriate to your needs.
After all, there’s no use spending lots of money on a high-volume MFP if your business’s print output doesn’t warrant it.
The next thing to consider is, how much does it cost to buy or lease? Most people simply compare the sticker prices, but this is not necessarily an accurate representation of the true cost of acquisition.
The cost of advanced features
While it’s tempting to get the model with the latest whizz-bang features, it’s important to
consider what sort of features your business requires, and what it doesn’t, as paying
for redundant features is an unnecessary cost. For example, does the device need a very fast output speed? If you have a large company with lots of users competing for device time,
then, yes, a faster output speed would be highly beneficial to maintaining an efficient
workflow. But if you’re a small business, it’s perhaps wiser to spend less on a slightly slower
machine.
Delivery and installation costs
These are often not considered until after the decision to purchase or lease a machine has been made. Make sure to ask how much delivery and installation will cost upfront and factor it into your decision plus any disposal costs relating to any copier that may have to be removed. Don’t get caught by unforeseen costs! There may be significant extra costs to hire a 3rd party to get a new copier up a flight of stairs/ old copier down a flight of stairs when no elevator is available.
Lease Costs
The use of many commercial grade copiers are acquired via a lease. Depending on the copier vendor there could be numerous fees in addition to the quoted monthly cost to consider. Such as first payment in advance, an extra initial lease documentation fee, a lease termination fee, a lease restocking fee or the extra cost to return a copier back to a destination of the leasing vendors choice. In the fine print of some sales contracts, the copier can only be returned at the end of a lease by a moving company of the vendor’s choice usually at much higher than market rate cost.
Alternate extra cost lease proposals such as No Payments for 90 days (Skip lease) or half price payments for 90 days (Step Lease) can be presented where immediate cash flow maybe a concern.
Out-of-the-box capabilities
Most devices come with starter cartridges yielding low page counts, so find out what comes in the box, and how many pages they yield. This should be factored into your TCO calculations.
3. HOW MUCH DOES THE DEVICE COST TO RUN?
It can be difficult for small and medium businesses with limited capital expenditure
budgets to look beyond the initial purchase price or lease price of a given piece of technology. In businesses that live and die by their cash flow, a typical approach is to buy the cheapest product that meets the minimum requirements for a given task.
The problem is many suppliers in the printer and MFP industry are aware of this approach. In order to capitalize on this, they employ the “razor and blades” business model: the initial hardware is frequently sold cheaply – even at a loss – in order to lock in future sales of high-priced toner, inkjet cartridges, printing drums, specialty paper and other consumables.
That is why it is essential to work out a device’s TCO as you’ll often find devices that are cheaper to purchase, or lease upfront that end up costing businesses a lot more in the long run. It’s not uncommon for the cost of consumables over the life of a printer or MFP to be four or more times greater than the initial purchase or lease cost, especially as more and more companies move to colour and graphics-heavy printing.
Many print devices use an all in one cartridge that integrate a print drum, developer and toner – that’s three things you must replace every time your printer runs out of toner. Some devices can have up to 8 different components that require periodic replacement, including the four toners cartridges, print drum, fuser unit, waste toner collector and transfer belt.
The cost and expected lifespan of the consumables
Not all toner cartridges and drums are created equal. Buyers are sometimes lured by the
prospect of low-cost consumables, only to find that the component needs to be changed with
unacceptable frequency. The good news is that most printer and MFP vendors now have comparable usage models, which makes lifespan comparisons a lot easier. Typically, consumable lifespans are listed in standard 8.5 x 11” letter size pages with a given percentage of coverage. For example, a toner cartridge may have a listed lifespan of 6,000 pages at 5% coverage.
5% is considered a good average for typical text-based printing. Users with heavy graphics requirements, however, may see lifespans that are considerably shorter than advertised. Printing out graphics-heavy web pages may, for example, require as much as 30% coverage. It is also common for printer and MFP vendors to offer multiple versions of the same component. For example, the vendor may offer both a low-yield and high-yield toner cartridge. Buying high-yield cartridges tends to be considerably more economical, and therefore better for the TCO.
Should I get a Service contract and what to expect
Depending on the print device and supplier you select, you might elect for “pay as you go “ service support or an onsite Service Contract or Service Pack. There could be many hidden charges here that will impact your TCO.
With pay as you go, if anything goes wrong with the device you usually must return the device to a service depot at your time and expense and wait days to weeks for the hopefully correctly repaired device to be returned to you. For mission critical and workgroup devices like a commercial copier, this delay is unacceptable.
A Service Contract is more convenient for commercial business but there are some considerations.
1. Will the service technician arrive onsite within four hours or less from the time a service request is made or is the service response next day? For a workgroup device servicing many employees , this distinction can be critical.
2. Is there a charge for toner delivery?
3. What is the charge for items not usually discussed like staples or waste toner containers?
4. Is there an additional Service Administration fee added to each cost per copy invoice?
5. Are there any minimum monthly cost per copy charges?
6. Are there any annual cost per copy escalator charges after the first year?
7. Are there any overage charges if the copier is used more than expected?
8. Are there any charges for Help Desk telephone support?
9. If you are considering acquiring a not new print device, what date did the manufacturer discontinue production? Most manufacturers are required to maintain parts and supplies for seven years after the discontinue date.
10. Is a high-quality Surge Suppressor included in your equipment acquisition? The #1 reason for unreliable print device performance is unstable power supplies. Damages to the print device caused by unstable power supplies are not covered by your service contract and could involve expensive repairs.
11. What hourly charges can be expected for Professional Service or IT fees? The installing of print drivers on new computers, the reinstalling of print drivers due to a Windows 10 or Apple OSX automatic update, the re-enabling of scan to email, the re-programming of scan to folder templates, mobile device printing, etc. are all services that are not break/ fix and could be considered billable labor.
12. Will your IT decision makers allow remote services like TeamViewer to access your network by your service provider to speed up the resolution of service requests?
13. All print devices eventually require an environmentally responsible method for disposing of empty toner cartridges, drum kits, waste toner containers, etc. You should ask your supplier what the procedure and charges are to do the right thing for the planet.
4. WHAT KIND OF SERVICE DOES THE SUPPLIER OFFER?
Did you know that, according to the Gartner Group, 23% of calls to the IT help desk are
about print-related issues? That’s a lot of time (and money) your IT department is spending troubleshooting printers and MFPs. That’s why the service and support offered by the manufacturer should be a major factor in any purchasing decision, particularly for larger businesses. When a device breaks down, you need to know you can get someone there to fix the problem quickly - before downtime becomes a major drain on productivity.
Key questions to ask of your supplier include:
• Is there a support line for the product?
• What hours is service available?
• What’s the average response time in your area?
• What kind of technical training did the vendor receive? Can you be guaranteed of consistent, knowledgeable service from them?
• Will the warranty or service contract cover the expected lifespan of the device?
Do some research into your supplier and see whether they have a reputation for being reliable and punctual when it comes to responding to service calls
5. HOW MUCH USER INTERVENTION IS REQUIRED?
Does this sound familiar? You go to the printer to retrieve your printouts, only to find that the
machine is out of toner, and your print job is now stuck in a serious backlog that is steadily
growing while someone seeks out some replacement toner (which may or may not be
on hand). Finally, the cartridge gets replaced – and now you must sit around, twiddling your
thumbs, waiting for the machine to get to your job in the queue.
The more time spent by staff filling paper trays, changing toner cartridges and drums,
ordering replacement supplies, dealing with waste and standing around waiting for prints
to finish, the less real work gets done.
Longer-life consumables can help reduce the number of human interventions, as well as the
cost. Large paper trays and expansion options can also help to decrease the time users have to spend on the device to keep it chugging along.
A managed print service can also help to reduce user intervention, by relieving
employees of administrative tasks related to the devices, such as ordering toner, as well as
by ensuring regular maintenance is conducted so the machines are always running smoothly.
Less time managing the machine means more time your employees can spend focusing on
what’s important.
6. HOW MUCH POWER DOES IT CONSUME?
It can be easy to forget about how much electricity your device is using. It is not only
important for your bottom line, it’s also important in terms of creating a more environmentally
friendly office.
The Energy Star website provides a device’s typical electricity consumption (TEC) value, which is listed in kWh per week. This value can be used to compare the energy performance of devices.
All Energy Star–compliant devices are required to switch from standby mode to sleep mode,
in which the device is consuming a very small amount of power, after one hour of inactivity at the most.
In order to make the most of sleep mode without compromising on usability, it’s worth also
considering how long devices take to print from sleep mode.
7. WHAT KIND OF IMPACT DOES THE DEVICE HAVE ON THE ENVIRONMENT?
As we’ve already touched on in this guide, a device that is more energy-efficient or
environmentally friendly can often also be less expensive to operate, thereby having a positive impact on your total business costs.
Purchasing a device with less consumables means you’re generating less waste, and therefore, spending less money on waste management. The same applies to purchasing high-yield consumables. A more energy efficient device is going to save on electricity costs. Devices made mindfully with durable materials are going to experience less downtime and require less maintenance, as well as cut down on the amount of e-waste being generated.
Cutting down on paper consumption is a green measure that can impact the lifespan of your device, as decreasing the volume of output means less wear and tear. It’s therefore worth considering the printer drivers and software that comes with the device, and whether these have a setting that can help to reduce paper consumption.
For those businesses truly concerned about reducing the amount of paper they consume, consider Toshiba’s unique e3508LP Eco- copier. The e3508LP is the same cost as an equivalent black only copier yet can recycle the same piece of paper up to five times while reducing the CO2 produced and water used to produce one sheet of paper.
Perform a Print Audit
When you install a print system, check that every user has access to the print
functionality that they need. Businesses can change, employee numbers can grow or shrink,
people adopt new ways of working and new applications can change the way that people use the devices.
If your printing network has been in place for more than one year, it’s a good idea to carry out a print audit to make sure you have the optimum set-up. You might find there are devices being overused, in which case you might need to invest in an extra device in order to maintain productivity. You might find devices are being underused, in which case you might consider consolidating to a single device shared between more users. You might find there are devices receiving an inordinate amount of service calls, in which case it might be time to think about an upgrade.
Make use of your print driver’s settings or get a document management solution
There’s a lot of unnecessary printing and copying that goes on in any given business.
People accidentally select the wrong settings; they forget to collect their printouts; they print
things in colour that could just as easily be in black and white. All these behaviors result in
unnecessary use of paper and consumables, which means more wear-and-tear and more
waste. But these behaviors are difficult to police.
Fortunately, technology can help. Printer drivers often come with settings to help you to minimize unnecessary output and waste. For example, limits like Department Codes can be imposed on how many pages certain employees can print, or on their ability to print in colour.
You can also set how certain documents are printed such as making double sided printing the default setting. You can also ensure the most appropriate device is used for a print job by automatically routing large jobs to lower cost, more energy efficient departmental printers and copiers.
There are also many document management solutions that not only help reduce document output, but also increase security and improve workflow.
Print-release software, for example, allows print jobs to be released at the device by the user. Because you can release the job from any device that is not being used at the time, you’re not wasting time waiting for the device to get to your job in the queue. It also eliminates unnecessary printing – no longer do uncollected printouts sit forlornly in the paper tray, waiting to be thrown away. Improving workflow with such software can also help eliminate the need for devices with high TCOs, such as personal printers.
Invest in a Managed Print Service
A Managed Print Service (MPS) is the fastest and easiest way to fully optimize your entire
document environment, thereby minimizing waste and ensuring your document workflow is
as efficient as possible. First, your current output is carefully assessed, then a custom solution that specifically caters for your business is designed and implemented. User training is part and parcel of an MPS, and supply management and maintenance become automatic, so you no longer must handle these administrative tasks in-house. MPSs also involve regular assessment, so you can feel confident your print environment is always operating at its peak. By ensuring that you get the most appropriate device for your needs, and that you have a solution that keeps unnecessary output and waste at an absolute minimum, an MPS can reduce the number of consumables and maintenance required and prolong the life of your device – all of which brings your TCO down.
In the end, a printer or an MFP is not simply a one-off purchase. It is an ongoing investment,
and one that can have a significant impact on operational costs, productivity and your office’s
environmental footprint. Make sure you make the best investment for your company by
considering all the factors that can contribute to a device’s TCO.
It’s also important to bear in mind the device’s TCO throughout its lifespan.
Regular monitoring and auditing of your printing environment and the implementation of appropriate document management solutions can prevent inefficiencies from creeping in, and ensure your printing environment is always operating at its peak.
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