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How to Best Calculate Cost of Ownership

14 Apr, 2008 By: BuyersLab BuyersLab imageSource

How to Best Calculate Cost of Ownership

Buyers Laboratory, INC (BLI) has launched an innovative Calculate TCO feature
for printers and copiers that enables (as a bliQ user) to compare the total cost
of ownership of their machines to that of other competing models by taking into
account all the key factors that will have an impact on a device's long-term
costs, including equipment, paper, consumables and service costs. Calculating
the correct total cost of ownership can be tricky. Calculate TCO helps users
identify all the costs involved in getting a page of output, including finance
costs and page coverage, and then does the calculation under a variety of
assumptions about the number of pages output over the life of the machine.

It's All In The Details

Based on early feedback from users, bliQ's Calculate TCO feature is very
easy to use and intuitive. Requiring just one page of data entry, the feature
can be accessed once a model is selected from Search Results. To begin a
calculation, click on the Calculate TCO link in the Product Research box.

The data entry screen is separated into the following fields: Hardware,
Monthly Volume Range, Service, Supplies and Consumables, and Paper.

  • The Hardware field allows the user to enter the machine pricing,
    configure the device with accessories, apply discount rates or trade-in
    allowances and select the acquisition method. Users can also enter the term of
    the lease and lease factor.
  • Default Monthly Volume Ranges based on the speed of the device
    (based on the monochrome speed in the case of color devices) selected are
    automatically displayed in the Monthly Volume Range field. These default
    monthly volume ranges are based on BLI user surveys. These default ranges can
    be easily overwritten by the user.
  • The Service Field is used to select the type of maintenance plan to
    include in the cost analysis and allows the user to enter the cost of the
    maintenance agreement or click charge, copy/print allowance and overage
  • Under the Supplies and Consumables field, a user can select or add
    any consumable item to include in the cost analysis. In addition, users can
    calculate toner costs based on real-world usage, as the industry standards
    might not represent the page coverage found in a typical office environment.
  • The Paper field gives the user the flexibility to include the cost
    of paper in the cost analysis, if desired.

The Calculate TCO report displays the average cost per page, the incremental
cost of printing the next sheet at different volumes, total cost and average
monthly cost for up to five monthly volume bands, which users can set. In
addition, the report provides a range of costs that could include lease,
service, supplies and paper costs for the five monthly volume bands. TCO
analysis can be viewed on the screen, or saved in either in Word or Excel and
printed. Detailed instructions on using the TCO can be found by clicking on the
question mark icons on the TCO screen or by clicking on View TCO Help.

If you have any questions on how to Calculate TCO, contact the Customer
Support and Training team at
or at 201-488-0404. Information courtesy of Buyers Lab

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