| If you are looking into setting up your own business, | | | | printer unit, add the Year-to-Date depreciation value of |
| one of the things that you will need to take into | | | | the printer, the Cost of Capital, Property Insurance of |
| consideration is the expenses that your company will | | | | the printer unit and any taxes. |
| incur in a year. One of the expenses that you will need | | | | Support. The cost for support for each printer unit is |
| to take into consideration is the total cost you will be | | | | the sum of the amount purchase, installation cost, |
| incurring for owning a particular printer model for your | | | | on-going support (if any) and the average monthly |
| business. This can be determined though the Total | | | | minimum amount for each printer (if you are just |
| Cost of Ownership calculation process. | | | | leasing the printer units). |
| What is Total Cost of Ownership? | | | | Maintenance Cost. To get the printer maintenance |
| Much of the equipment that you purchase whether for | | | | cost, add the estimated percentage of the time spent |
| personal or business use would eventually incur | | | | by a 3rd party support vendor will have on a printer |
| additional costs after the initial purchase. The Total | | | | unit to the annual 3rd party vendor support cost. The |
| Cost of Ownership is a process that allows a business | | | | total is then divided against the percentage of black |
| owner to determine the overall cost that the company | | | | and white and colored printers. |
| incurs upon purchasing a particular device or equipment | | | | Consumables. Multiply the total cost of staples to the |
| such as printers. | | | | percentage of color printers and add the results to the |
| Why is Calculating Total Cost of Ownership | | | | total cost of the ink cartridges that you have |
| Important? | | | | purchased per printer. |
| Being able to calculate the total cost of ownership of | | | | Things to Remember when Computing the Total Cost |
| your printers is important for you especially if you are | | | | of Ownership |
| going into a printing business. The amount will allow you | | | | Make separate total cost of ownership computations |
| to determine how much you will price for your | | | | for black and white and colored prints even if your |
| services to your potential customers to compensate | | | | printer is capable of doing both. This is because black |
| for the expenses you will incur and make a profit at | | | | and white printing is relatively cheaper than colored |
| the same time. | | | | printing. |
| How do you Calculate Total Cost of Ownership? | | | | Create separate total cost of ownership computations |
| Total pages per year. This is computed by multiplying | | | | based on the kind of printers that are used. This is |
| of the total number of pages that you will be producing | | | | because the service, maintenance and consumables |
| per printer by 4. This is because financial assessments | | | | incurred are dependent on the kind of printer that you |
| are done every 3 months. | | | | have. |
| Acquisition Costs. To get the acquisition cost per | | | | |
