We talk to customers in Denver who seem to only be able to look at the cost of the copies when they are assessing the cost of a copier. I wanted to write this post to warn you this is a dangerous way to think. Why? There are fundamentally 3 different sources of cost when it comes to copier costs in Denver.
- The equipment
- The supplies
- The maintenance
When you get allured by the low cost per print, you are looking at #2 and #3. This is a valid componet of the overall cost, but it is more than just those two… there is also the equipment portion. So, lets look at this simplistically. If you have a copier that is $9,000 and costs $.008 per print or a copier for $3,000 and $.018 per print and you plan to own the copier for 4 years, how many prints do you need to do a month before it’s breakeven?
The math works like this —
- $9,000 – $3,000 = $6,000 differential on equipment
- $.018 – $.008 = $.01 differential in prints.
- $6,000/.01 = 600,000 — this is the number of copies needed for breakeven to occur.
600,000/48 = 12,500 copier per month. I would generally say if you’re doing more than 10,000… getting the big copier would make more sense (as you’ll have better finishing, stronger mechanics, etc…) Less than 10,000 a month, you may as well get the $3,000 copier and pay more per print. If you only did 4,000 prints a month and got the bigger copier, you would have spent an extra $4,000 for copies than had you bought the smaller unit.
- Eq A cost – Eq B Cost = Equipment Differential
- Supp B cost – Supp A cost = Supplies differential
- Equipment Differential/Supplies Differential = Breakeven quantity of prints