Office printers can make up a hefty portion of operating cost expenses as general accounting practices fail to include the total cost of ownership of the printing device. Instead, most offices simply account for the cost-per-page, dividing out the price of paper, ink refills and short-term maintenance needs against the number of print jobs. Without assessing the overall cost of ownership, the full perspective of your potential for operating cost reduction can never be known.
Here are just some of the TCO elements that offices tend to overlook:
Direct Ownership Costs
As an asset, printers and copiers maintain an established value based on the original purchase price that more likely than not depreciates rapidly. Including expenses like sales tax, delivery, installation and other service fees, a business can lose as much as 50 percent of the final purchase price of the equipment the moment the machine is turned on. Equipment leases represent a similar ongoing financial loss.
Repairs and Replacements
A common accounting practice is to average the typical running expenses of printing over the cost-per-page/cost-per-image ratio or on an interval basis — a.k.a., cost per month or cost per day. With printers, these averaged calculations can fail to address large outliers, like expensive parts or a large one-time repair cost. Repair labor is another significant expense.
Loss of Productivity from Downtime
When the printers are not running, they are costing you money through depreciation or leasing fees, yet they are not earning their keep. Workers must delay their activities or divert them elsewhere, often incurring additional expenses from ordering third-party printing services.
The fact is that most organizations fail to account for the above-described items simply because they are so unpredictable. An ideal printer ownership to them is one where they do not have to think about it beyond restocking consumables, but this is almost never the actual case. Instead, the tactic of avoiding printing cost of ownership audits can end up adding up to large hidden expenses.
Managed printing services offered through Freedom Profit Recovery takes all these issues hidden behind the scenes and makes it our job to bring them to the forefront. By assessing total cost of ownership through a line-item expense audit, we can weigh your operational cost savings options and ascertain the most cost-effective decision to make moving forward. With the right tech and strategies, it is possible to see an 80% cost reduction.
Cost-saving strategies can include replacing equipment with newer, more reliable and user-friendly versions that incur less downtime. Cost savings can involve paying for service and maintenance fees up-front in a rolling service model. It can even include keeping the printers you have but accounting for depreciation and other tax-deductible losses in a different way.
In essence, Freedom Profit Recovery will discover whatever it would take to put more money back in your company’s pocket while making print services more convenient to use across the board. Employees are happier, and CFOs hit the numbers they need to keep their superiors smiling.
Discover what managed document output services can do for you today!