What Makes Good Total Cost of Ownership for Managed Print Services Providers?
In Time Tec is a proud contributor to the Managed Print Services (MPS) industry. Our employees and leaders have decades worth of combined experience. In this blog, we share with you what we have learned about TCO.
Total Cost of Ownership (TCO) can be a powerful sales tool. In contrast to simple cost-per-page comparisons, utilizing detailed TCO calculations for a potential customer’s current fleet can help MPS providers convey the comprehensive cost savings and value generated by the MPS solution they are selling. However, TCO is only useful if it is good TCO.
So, what makes up good TCO?
In Time Tec’s approach is to honor what we call the four C’s of TCO – it must be Comprehensive, Configurable, Correct, and Current.
- Comprehensive – it includes all the relevant hard and soft costs
- Configurable – calculations are adjustable to reflect each unique situation
- Correct – there is integrity in the data, and the numbers are accurate
- Current – powering the TCO engine is an exhaustive and up-to-date device data set
A comprehensive TCO that represents the cost of operating an asset over its entire lifespan includes relevant direct/hard and indirect/soft costs in a print environment. When calculating TCO, In Time Tec considers the following factors:
- New Device Hardware + Installation
- Long-Life Consumables (such as drums, print heads, and maintenance kits)
- Power Consumption
- Physical Space
- IT & Helpdesk Staff Labor Costs
- Carbon Emissions
A configurable TCO allows for appropriately adjusted calculations, so the values accurately reflect each unique situation. Since MPS providers use TCO to gain insights into what potential customers might be paying for their current fleet, whether self-managed or under another MPS vendor, configuring TCO calculations to meet the customer’s distinctive attributes is essential in providing a compelling sales story.
A correct TCO provides confidence in the integrity of the data and the accuracy of the output calculations. Googling can only take you so far in this endeavor, and unfortunately, it often takes a significant amount of time. A compelling TCO story can only be relied upon when the inputs are factual and complete. Basing TCO calculations on a reliable data set is essential, and it is why In Time Tec has invested tremendous energy into building and maintaining our proprietary data set of devices and consumables.
A current TCO engine utilizes an up-to-date device data set for both past devices and the market’s latest devices. You never know what printers and MFPs you will find in the field, and having access to data for older devices is just as crucial as having information on the most recently released devices.
Generating a quality TCO analysis can be time-consuming and only as good as the data it is built upon. In Time Tec created the Cartos Suite TCO offering to ensure our users can generate the best TCO analysis possible. Gathering and comparing TCO doesn’t have to be difficult anymore. With Cartos Suite TCO, you can upload your device data and instantly receive TCO click pricing. We also make it easy to compare your future state offering to the current fleet, making a compelling case for a new MPS contract.
In Time Tec’s TCO structure offers a way for MPS providers to get an idea of what a potential customer is spending and how much money they could save them. Check out our Cartos Suite of MPS tools, including TCO and more.
Can’t wait to hear more?Subscribe to be notified when we can share more of our solutions. You can opt out at any time.