Saturday, January 24, 2009

Small Business Multifunctional Copier


Below is a question that was posted on CNET. I took the time to answer the post on CNET. Here's the link for the entire thread small business multifunctional copier.

We would like to purchase a color/b&w copier for under $1000. Estimating 2500 b&W, 1000 color copies/day. We don't need alot of whistles just volume. Any suggestions. Also where can I find cost/page info for comparisons?


Here's the real scoop, if you get a machine for under $1,000, here's what you can expect based on your volume.

1. Color per page cost at .20 cents per page based on 20% coverage of the page. That means you'll spend $200 per month for color supplies!
2. Black per page cost at .03 cents per page based on 5% coverage of the page. That means you'll spend $75 per month for black supplies!
3. Within two years or less the machine will be worthless and probably be down more often for consumable supplies and maintenance than its running.
4. If this device could last 5 years you would spend $16,500 for a $1,000 system.
5. You would probably replace the system every year, because systems under a $1,000 are not built for that capacity.

Now here's what you should do:

1. Lease a larger machine ie: Ricoh mp c2550 for under $120 per month
2. Black per page cost is .015 with on-site service, means you'll spend $37.50 per month for supplies and maintenance.
3. Color per page cost is .10 or under with on-site service, means you'll spend $100 per month or less for supplies and maintenance.
4. System will be faster, have better reliability, plus add additional features which may stream line your business process.

Summary: That $1,000 system will cost you $275 per month in supplies only and will not last the year. In 12 months you'll need another, here you must also amortize the cost of the $1,000 system over 12 months which equals $83.33 per month. So your TCO (Total Cost of operation) is $358.33 per month. Moving to a larger unit such as the Ricoh MP C2550 your total monthly cost with supplies, on-site service and lease is $257.50. That's more than $130 per month in savings. Keep in mind that if your volume increases so do your costs. If your volume increases at 10% per year for 5 years your savings could be well over $300 per month.

Don't let the small investment price fool you, you need a larger system to meet your needs. Please also keep in mind that the cost per page for the Ricoh device may vary from dealer to dealer and geographical location, the cost per page is only an average of what I have seen in the industry for this device.

Art

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