Known as the Razor Blade Strategy, you sell a low priced product tied to a higher priced consumable item that is needed on an ongoing basis. This was HP's (Hewlett-Packard) Printer Business Model for many years and many desktop printer manufacturers followed right along. For the Managed Print Services (MPS) Providers, these were easy targets to be able to save customers thousands of dollars.
Let’s first address the factors which determine a cost per copied or printed page and in order to do this let’s assume an average monthly volume of 5,000 pages.
In a true cost per page, the equipment would be included. If the cost of the equipment is the industry average, $6,500, and is leased for five years this should be approximately $130 per month. At 5,000 pages per month, you will need $.026 per page just to cover the equipment cost.
Toner is a huge factor in determining cost per page. Our example above is a color device. This means it will require four toners at a time: Black, Cyan, Magenta and Yellow. Let’s assume the price for a black toner is $79 and yields approximately 16,500 pages based on 5% coverage. This would make just the black toner $.0048 per page.
The Cyan, Magenta and Yellow toners each cost $120 and yield approximately 5,500 pages based on 5% coverage. Each color toner costs $.022
A Full Color Page is calculated at 20% coverage of the page and based on these numbers, would equate to approximately $.07 just in toner costs.
Now, I am going to throw a wrench out, not to get us sidetracked, but it is something that definitely needs to be addressed. What happens when you want to have an extra set of toners on the shelf but you are only paying a cost per page price?
Toners on the shelf are not actually generating any cost per page revenue for your vendor. In the scenario above, this would equate to $439 in additional costs not factored into the cost per page. In essence, the cost per page for black just doubled to $.0096 per page and $.14 for a full color page just for toner. While there is the argument of having extra toner so you never run out and experience downtime, the fact is the number one cause of running out of toner is human error. The technology today is so advanced, if you sign up for our AutoTech program, you will never need those additional toners on the shelf nor need to worry about human error. You can read more about AutoTech,
Other consumable items would include the following:
Photoconductor or Development Units are often referred to as drums. In a color device, there will also be four of these units: Black, Cyan, Magenta and Yellow. They often range from $100 - $200 each.
Transfer Belts are also in the $100 - $200 range, as are Fusing Units or Fusers and Exhaust Filters.
Topics: Managed Print Services, Business Improvement, Printing, Faxing, Copier Pricing, Pricing, Copier Issues, Process Improvement, Copier Service, Document Management, Net Promoter Score, Customer Satisfaction, NPS, MPS, Response Time, Repair Time, Printer Service, Office Equipment Buying Guide, Printer Pricing, Copier RFP, Office Equipment Criteria, Cost Per Copy, Cost Per Page
Replacing or adding a Multifunction Copier/Printer should be seamless if the proper steps are taken before scheduling the delivery.
Topics: Printing, Copier Pricing, Copier Problems, Pricing, Copier Issues, Process Improvement, Copier Service, Printer Service, Ricoh Service, Sharp Service, Canon Service, Savin Service, HP service, Lanier service, Good Service, Xerox Service, Toshiba Service, Kyocera service, Office Equipment Buying Guide, Office Equipment Purchase, Printer Pricing, Office Equipment Criteria
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