Auditing Your Device Usage - Total Cost of Ownership

Auditing Your Device Usage - Total Cost of Ownership

 

Over the past weeks our blogs have looked at analysing how many devices are in use in your organisation, and how many pages each device produces.

Today we will look at how you can determine how much you are paying per produced page on each of these devices – vital information to help reduce your expenses.

So what is typically included in the Total Cost of Ownership (TCO)?

Most industry insiders will respond to this question with the pro-rata cost of the device and the pro-rata cost of all applicable consumables like toner, drums, belts, fusers, and maintenance kits.
Most of these costs you will have on file on your company books from your purchases. Some experts will include and allow for labour & parts for repairs. Not included in the TCO are the costs of paper and the costs to procure consumables and repairs.

For older devices that have already been fully depreciated, it is recommended that you divide the asset cost by the lifetime pages. For devices that are being depreciated, it is recommended to divide the annual depreciation by the annual print volume.

For the consumables you will need to know the “yield” or, in other words, for how many pages you can use this. Some consumables have a “flat” count per page, e.g. drums, regardless if you print a single character on the page or have a 100% coverage with full-colour photos. Others vary from what you are printing e.g. toner. For these, the manufacturers will provide a yield based on typical values that are quite representative for most users.

If you opt to include repair costs, it is recommended that you determine your average annual repair costs for your devices and divide it by the number of devices.

Like most end-users that have conducted a TCO analysis for their devices you will be amazed how much difference there is in the costs-per-page across the devices in your fleet.

In our next blog we will provide some recommendations on how you can use this information to reduce your overall expenses for copy & print.
Without saying too much – no, you don’t need to replace everything to achieve significant savings.

In the meantime for comments & questions - Contact Us!