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Does it really cost you 7 cents every time you print/copy a page in an unmanaged print environment? Well, over the years, and as recently as a Gartner presentation last month, I have been hearing claims that suggest the average operating cost per page for print devices are in the range of $0.05 - $0.07 per page.



As a company that manages thousands of these printers, I can confirm that your Cost Per Page contract, when managed as a collective whole, falls significantly below this figure. In fact, the best managed environments often result in the printer-based devices being LESS expensive than the less efficient copier-based devices. Therefore, in an effort to review these claims, I've done some analysis on a typical printer, using the ‘old' way of procurement. Supplies purchased through a contract stationer and parts/service purchased through a Service Pack / Care Pack. Thought we'd look at both a high-volume device & a low-volume personal device (you know, the one everyone wants to get rid of!). Here were the findings:



High Volume device: HP 4250

Low Volume device: Samsung 4826



Example A: High Volume HP4250



Step 1: Consumables: Toner & Maintenance Kit (MK)

Price: Toner @ $310 (Office Depot) & Maintenance Kit @ $390 (Grand & Toy)

Manufacturer Suggested Yield: Toner @ 20,000 pages & MK @ 225,000 pages

Manufacturer Suggested Average Coverage/Page: 5%



Based on the above, the consumables for the HP4250 would cost:

OEM Toner @ $0.0155/page + MK @ $0.0017...or $0.0172 per page.



The competing argument will suggest you don't receive 100% yield on toner...and I would agree. From our experience, the average toner yield is approximately 75% of the OEM Suggested Yield, thus resulting in a consumable cost of approximately $0.0224.



Step 2: Annual Service Contract $218 (based on HP Care Pack, supporting a ‘next business day' level of service). Based on an annual volume of 36,000 (3,000pgs/mth), this results in a further $0.0061/page for next day product support.



Adding the two steps shows:

Step 1: Consumables - $0.0224

Step 2: Service/Parts - $0.0061

Total Cost - $0.0285


Based on this math, it appears the industry assumptions may be exaggerating their cost estimates by up to 40% - 60%...OR possibly they're only speaking about the personal devices? Let's run Part II of this test.





Example B: Samsung 4826



Step 1: OEM Toner @ $75.99 (Bluedogink)

Manufacturer Suggested Yield: Toner @ 3,000 pages

Manufacturer Suggested Average Coverage/Page: 5%



Using a 75% toner yield, the total consumable is $0.0338/page.



Step 2: Annual Service Contract $49 (based on the Samsung Service Pack, supporting a ‘next business day' level of service). Based on 500 pages/mth, this results in a per page service rate of $0.0082/page.



Adding the two steps for the personal device:

Step 1: Consumables - $0.0338

Step 2: Service/Parts - $0.0082

Total Cost - $0.0420




Even with the higher cost of personal devices, the rate per page still remains far below the industry suggested $0.07/page...and the productivity gains realized through the personal devices are hard to dispute (read my blog on personal printers).



So as a recap: a high volume device in an unmanaged program will cost a company just under $0.03/page and a low volume device in an unmanaged program will be just over $0.04. The analysts also suggest that companies can save approximately 30%-40% leveraging a managed environment (or a Managed Print Service agreement). That savings creates a pricing model that looks closer to $0.02/page on the high volume devices & $0.03/page on the low volume/personal printers.



When you look at the above Managed Print pricing, the lower acquisition costs of these devices, and the need to improve business productivity (http://www.cbc.ca/money/story/2010/03/16/productivity-gains.html), it becomes very clear why the industry has shifted to a decentralized & distributed print environment. In fact, according to Lyra Research, total pages printed on distributed (A4) MFP devices has almost doubled over the past two years, while centralized copiers have seen a significant decline in both unit sales and average copy/print volumes on those devices.



I hope the above information equips you with better knowledge the next time you hear $0.07/page! A few basic reminders:



drill into those statements about the cost of print.
go to a MANAGED PRINT environment. Even without including the ‘soft cost' benefits, the financial costs will be approximately 30% less than an unmanaged environment.
Research both the productivity and financial savings available in a distributed print environment vs. the centralized model. You'll be surprised that you can have your cake AND eat it too!

http://blog.lasernetworks.com/...-cents-a-page-really
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