In-Office Printing Costs. Do You Know Yours?
December 3rd, 2009 | Office Equipment | No Comments »
Have you completed a cost analysis on your in-house printing? If you haven’t you could be in for an expensive surprise. Completing a cost analysis can save you time, money and productivity. It is really a very simple process that is well worth your time investment. Follow the steps below to find out your monthly printing costs.
The first step to finding out your true cost per page is acquiring your data. You will need the cost of your paper, cost of tuner cartridges, the cost of the actual printers, the duty cycle for the actual printers and toner cartridges and the number of pages you print per month. Once you have these numbers it is fairly simple to figure out your monthly cost per page. Remember your true cost calculation will only be as good as the time and effort you put into acquiring the accurate data. Acquiring these numbers over two to three months and taking the averages will give you the best cost analysis.
For this illustration we will use an office with a volume of 6,000 images a month. Generally laser office printers tend to get a better ROI than Inkjet type printers. We will only be talking about black and white images. Color imaging will be a blog entry for another day. We chose a common business office printer (HP LaserJet M3027 $1599.00) with a monthly duty cycle of 75,000. It has a recommended monthly duty cycle of 2,000-6,000. At 6,000 images per month this printer would last no more than 2 years if you are lucky with some maintenance costs. Toner cartridges for this printer cost $143.00 and yield 6500 images. Cartridges are based on an ISO/IEC 19752 standard which states average image coverage is 5%. I feel this is very low and believe that an average image is closer to 15% coverage minimal. This toner cartridge will be pressing to reach 3500 images in normal office production. To be honest it would be more like 2500-3000. But for the sake of arguing we will go with 3500. To find the true number, keep track of how many you go through over a 3 month period.
Now that you have the data let’s start breaking down the numbers. The paper cost is pretty static. This number will generally stay the same unless you are a high volume office. Obviously if you buy paper in bulk you will get it at a lower price. In either case this price will stay the same in any example. Let’s put it in our illustration so we get the total picture of our cost analysis. One case of average paper purchased from Office Depot (5,000 sheets case) is $36.00 at the time of this article. Let’s take 6,000 images and times it by 12 months. This gives us 72,000 images a year. 72,000 images divided by 5,000 (1 case of paper) tells us we use 14.4 cases of paper a year. 14.4 cases of paper divided by 12 tells us we use 1.2 cases of paper a month. Our cost of paper ($36.00 x 1.2) is $43.20 per month for paper.
Let’s take the cost of the printer and see what our cost per month calculates too. The HP LaserJet M3027 costs $1599 to purchase. With the monthly volume we are using for this example, this printer will last no more than two years in our opinion. Without any maintenance costs I feel this is very generous to the HP basic office printer products. Printers and copiers are very high maintenance pieces of machinery. The paper dust, toner dust and all the moving parts make this equipment prone to failure. If we take the $1599.00 and divide it by 24 we come up with $66.00 per month on printer costs.
Next we need to look at the toner costs per month. If we take our yearly image production of 72,000 and divide it by 3500 which tells us we use 20.58 cartridges a year. 20.58 cartridges divided by 12 gives us 1.71 cartridges per month. 1.71 cartridges times $143.00 tells us our monthly toner cost is $245.14.
If we add up all our monthly costs we will have our total monthly printing costs. .
Paper $43.20/mth
Printer Cost $66.00/mth
Toner Costs $245.14.00/mth
Total Monthly Costs = $354.34
To find out your price per image divide the total monthly images per month by your total monthly printing costs.
6000/$354.34 = $.06 per image.
This is a general illustration of a small office scenario and the costs they acquire per month on printing. Again these numbers are only as good as the information we put into the scenario. In this scenario we are of the opinion these numbers are on the minimal side of error.
There are many options when it comes to in-house printing. You can take the route of this scenario and purchase the equipment yourself and maintain it. You can also look at a more industrial solution by partnering with an office equipment provider to lease the equipment and purchase a maintenance contract that includes unlimited toner. There is also print management solutions were a vendor will supply paper, equipment, toner and maintenance for all you’re imaging needs.
There are pros and cons to all these solutions and generally it comes down to cost justification. We find once an office gets over the 3000-5000 images per month mark it is more productive and cost effective to go with an office equipment provider or a vendor that will supply a total print management solution.
Don’t guess on what your printing costs are. Take the time to break down your numbers and see what your options are. $354 a month can obtain a very productive office printer that scans, copies, prints and faxes with a maintenance contract that includes all your toner. You never have to worry about replacing parts and purchasing toner again. Plus you will gain many features on industrial type printers that you won’t get with standard office printers you purchase from retailers.
If you would like help analyzing your printing cost in your office environment please give us a call (937-684-8245) or fill out our free network assessment form.


