In late August, early September of 2015 this company changed many of the personal printers in their office to smaller Samsung models that take the MLT-D111S toners and have a yield of 1,000 pages at 5% coverage. Since the 5% coverage is not an exact reflection of what is usually printed and only a standard that facilitates cost-per-page comparisons, they could actually get only 700 – 800 pages per cartridge.
After the change in printers, they started purchasing over $660.00 worth of toner from Cal Imaging every month. This raised a red flag with us because in the many years Cal Imaging had been doing business with them, we had never seen that much being spent on a monthly basis for toner.
The frequency of toner consumption and its high cost was a concern to Cal Imaging and after four months of this purchase pattern, we needed to bring this issue to the attention of our client. We discussed how the new small printers were in fact not very cost effective since the cost of purchase, combined with the cost of the toner and the total cost of ownership (TCO) was very high.
Throughout January, HP had a much better printer on promotion. The machine would cost $299.95 to purchase. The high yield toner available for this printer is a 9,000-page yield toner and on an HP Supply Contract would cost about $269.00 per cartridge. The HP’s Supplies Management Program, or SMP contract, effectively provides you with wholesale pricing for the toner and is only available when you purchase machines from a handful of equipment resellers across Canada. Cal-Imaging is one of the few companies that is qualified to offer HP SMP contract pricing.
The same 9,000 pages with HP cartridges, when printed on the Samsung printers would use at least 9 cartridges and cost about $750.00. The HP printers we recommended come with a standard yield toner cartridge included that is rated as a 1,500-page yield toner. When we deduct the cost of the toner, the printers would effectively cost less than $217.00 each.
Just one month’s toner order of $660.00 would pay for 2.5 machines!
In January 2016 the customer replaced some of their Samsung printers with three of the HP printers we recommended. More will be replaced in the upcoming months.