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What does it really cost your business each month for those printed and copied documents? What do those colour and black marks on paper really cost?
The salesperson said we could save money....can we?
These are the questions that a “Marks on Paper Audit” is designed to answer. Essentially a cost-benefit analysis or a “Total Cost of Ownership” (TCO) analysis that is a business tool designed to find the lifetime costs of acquiring, operating and changing a copier, printer or both. A simple exercise, it is comprised of three simple elements:
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 Acquisition Costs: This is simply the actual purchase price of the equipment or the lease payment per month associated with the equipment.
Lifecycle: What is the estimated useful lifespan of the equipment? How long will the equipment meet your needs? Will your needs change before the equipment’s reliable life is over? In the case of a lease it is the term of the lease agreement.
Operating Costs: Essentially the true costs of toner, service contracts, maintenance and repairs. In many cases these costs are far greater – by several factors – than the actual purchase price. In the case of copiers these costs are typically straight forward; usually including toner, parts and labour. The cost of operating a printer is often much more obscure. Where the cost of a copy is constant, the cost of a printed page can vary immensely depending upon the amount of toner coverage on the page. The higher the density of the toner on a page, the lower number of pages per cartridge and the higher the cost per page.
The “Marks on Paper Audit” is not designed to take into account important but difficult-to-analyze criteria such as quality of documents and reliability of equipment. While these criteria will affect labour costs and paper costs as well as overall satisfaction they are difficult to measure and open to wide degrees of interpretation.
Case Study: Black & White and Colour
Customer’s Current Situation: |
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Use a total of two boxes of paper per month (10,000 pages) |
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Copier 4 years old, service is $0.025 per page (4750 copies/month) |
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Two HP 4000 laser printer (4500 printed pages/month) |
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One HP Color Laserjet 2550 (500 colour printed pages/month) |
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Proposal: |
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Replace current copier with new Colour/Black & White network connected copier/printer. |
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Purchase price $ 9500.00 or lease @ $186.50/month, 60 month term. |
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Service rate $0.015/pg Black & White, $0.10/pg Colour. Includes all toner, parts and labour. |
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Transfer 50% of current laser B & W prints and all colour prints to new machine. |
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Keep current fax machine. |
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| Marks on Paper Audit |
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Current Expenses |
Proposed – Purchase |
Proposed – Lease |
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| Copier Service |
$ 118.25 (0.025/pg) |
$ 71.25 (0.015/pg) |
$ 71.25 (0.015/pg) |
| (4750 pgs/month) |
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| Printer Costs-B&W |
$ 135.00 (0.03/pg) |
$ 33.75 (0.015/pg) |
$ 33.75 (0.015/pg) |
| (4500 pgs/month) |
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$ 67.50 (0.03/pg) |
$ 67.50 (0.03/pg) |
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| Printer Costs-Colour |
$ 195.00 (0.39/pg)* |
$ 50.00 (0.10/pg) |
$ 50.00 (0.10/pg) |
| (500 pgs/month) |
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| Equipment Cost |
$ 0.00 |
$ 158.33** |
$ 186.50 |
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| Total |
$ 448.25 |
$ 380.83 |
$ 409.00 |
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| Monthly Savings |
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$ 67.42 |
$ 39.25 |
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| Yes we can save money. |
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