Total cost of ownership (TCO)

Why is it important?
It is necessary to understand every cost associated with a particular document activity. For example, you may have purchased a printer for use at home. It often costs £200 or less to buy the printer. However to replace one set of of short-lived cartridges can cost at least £50. Some calculations, for example, show that designer French perfume is cheaper than the liquid in inkjet cartridges. Total cost of ownership is one of the tools our account managers use to make sure documents are produced in the most economic manner. Understanding all aspects of purchase, warranty, consumables, service and support.

What do we do?
Account managers have been trained to look at every aspect of existing document production to ensure that a full understanding of all costs are included in an evaluation. Any proposed solution would be subject to the same rigorous process.
TCO is a core tool because it ensures efficient document production. It can also often provide full justification for the investment in new equipment and technology because it can often be used to drive down costs. Technology can also provide competitive advantages.

Sample TCO comparison.
Two samples of the impact of TCO are shown for an illustration of the importance of understanding the full impact of costs in decision making.

Printer price £1000
5,000 prints per month, 3 years
@ 5% coverage £2,990
@ 8% coverage £3,854 (22% more)

Colour printer price £3,600
10,000 colour prints per month, 3 years
@ 5% coverage £30,000
@ 7% coverage £40,000 (33% more)

Why use Annodata?
Total Cost of ownership is a key business tool. It can help ensure that the true significance of all lifetime costs is available for decision making. Our skilled Account Managers - and where necessary Technical Consultants - can ensure your organisation makes the correct decisions.