fax, an HP laser printer, and an ink jet printer. At some point in time the customer bought these units for cash or check. Find out or estimate how much they paid for these items, and then amortize the amount paid for those items over the life cycle. When speaking to the customer in the initial consulting appointment, have the customer agree to your method of amortizing those systems. My talk track has been this, when doing a cost analysis I look at all of your printing equipment, the fax, the copier, color ink jet printing and laser printing. I see that you have an Epson color printer, an HP laser and an Oki fax, are these units all paid for? How often do you require service on these pieces? How often do you replace these systems? Once I have these numbers, I explain to the customer that the monies paid for these systems should be accounted for in their imaging or printing budget. I also state that this equipment will not last forever and will have to be replaced. I then state that I will do a straight line amortization of these units. When uncovering a companies costs these “hidden costs” will help justify that new Ricoh MPC3502 will of the accessories.
These “hidden costs” for these systems based on 3 years for the laser and fax and two years for the inkjet can account for almost $80 per month (based on $1,000 for the fax, $1,000 for the laser and $300 for the ink jet). Then add in 2 service calls for the fax and the laser over the term and you have almost $90 a month. That $90 can represent a $5,000 savings to the customer and or may be the difference when trying to cost justify a $20,000 system. Does all of this make sense, you bet it does.