Blog
Care About Cost? Look Beyond Price!October 13, 2011By: Rob Nelson Director of Sales For many organizations today, cost is critical. Operating costs, capital expenditures, expenses, DSO, et.al. are being looked at as a way to run more lean and efficient. When it comes to office equipment, organizations ask, “what’s the price?” Sure this matters, but it’s the proverbial tip of the iceberg. What you save on price can be spent ten-fold on operating costs if you don’t engage in an eyes-wide-open approach to Total Cost of Ownership (TCO). Price is but one component of how much it will “cost” your company. The price reductions / savings you negotiate on equipment is a moment in time benefit. The ongoing cost of operation is where the real opportunity is. Consider this…you reduce the price of an office equipment purchase by 14% through savvy negotiations with your chosen vendor. No competitor could match their “price.” Let’s say that equates to a $20,000 savings. Your new equipment gets installed, your employees get trained and off you go. Now consider some questions:
If you didn’t pay appropriate attention to these and other cost factors, that $20,000 in savings could be overshadowed by as much as $200,000 worth of excess cost over the life of usage. These are just several of dozens of cost considerations that go well beyond how much you paid for the hardware. Myriad stories exist of companies who purchased or leased equipment at a reduced price and then paid far more than necessary for service, support, supplies, reliability, effectiveness, inflexibility, acumen and more. TCO must be part of your vocabulary and process when making office equipment buying decisions. “The common law of business balance prohibits paying a little and getting a lot.” - John Ruskin Posted in Uncategorized Tagged copiers, cost, Genesis, Hewlett-Packard, HP, Kyocera, managed print services, MFPs, multifunction, price, printers, printing, service, technology, Xerox Leave a commentLeave a Reply |
© 2011 Genesis Technologies  |