Most of us are familiar with the ‘iceberg theory’; the part of the iceberg that you can see above the water is often much smaller than the hazard that lurks beneath the surface. It’s a theory that applies in the production print industry, too – to a greater or lesser extent.
Sure, you’ve priced up the press, associated click charges, service costs and monthly volume, but what else should you take into account before signing a new contract?
Regardless of what you choose – and who you choose it with – it’s vital to make an informed decision. Part of that rests on asking pertinent questions and doing the right research before and after receiving a proposal. If you’re choosing a device to work with for several years, it’s an investment worth getting right.
Below we’ve listed potential costs to be aware of. Make sure you ask your provider if you need clarity in any area.
Installation
Is this included, or is there a one-off fee? What does the fee cover, and is it by day, hour or something else? Do you need an electrician to do some work beforehand? It sounds obvious, but have you checked there’s space for your new press and for people to operate it safely? There may be additional costs if you need to reconfigure your print room to create more space or to increase the floor load.
Training
What exactly does your provider give you with your new device? If you’re adding another press the same as your existing one or upgrading to a more recent model, then your training needs are likely to be minimal. However, if you’re leaping into fluorescents or inkjet, for example, you may need to get some additional training for operators and designers. How much of this is likely to be free, and does it come from the manufacturer or a third party?
How intuitive is your device going to be? Have you seen one in action? Do you need to take into account the costs of a lower production output while you get familiar with it?
Ink/Toner costs
What’s included and what’s not in your automated consumables and what are you likely to be charged? Take into account speciality inks like metallics and fluorescents, and, where relevant, how long it takes to switch one set of toners out for another (and therefore the associated delay between jobs).
As an aside, we hear that some of Xerox’s competitors have many more steps and much more convoluted swap-over routines between toner kits! Think about the time spent, not just money.
Where inkjet is concerned, what’s the difference between outputs at various Image Quality (IQ) levels? Which quality is required by your customers, and what will you charge for it to recoup the cost?
Media costs
Which approved media can your new press handle, and how do the prices stack up for specialist stocks you want to use? Which stocks are suitable for your machine? What are the risks of downtime if you pick sub-optimum products that don’t agree so well with your press? Are you liable if you use something that’s not on the vendor-approved list and damage results from it?
In the inkjet world, how does your choice of paper impact on ink consumption? Ask for samples where you can.
Additional feeding and finishing kit
Which finishing kit do you need and what does it cost? Will your existing equipment be compatible, or do you need to invest in new technology or outsource some work?
What about the other end? Additional trays and feeders for longer runs might save you staff time that can be reallocated for more profitable activities. What do they cost and what benefit do you receive in return? Would feeding XLS sheets be possible to cut down media costs and increase productivity?
Are you going with cut sheet or, with a Xerox Baltoro, have you considered a Roll in Tecnau Sheet Feeder to cut down waste, necessary warehouse space and cost? Many of the Baltoro’s competitors can’t do roll-to-cut sheet in the same way.
Workflow software
Are manufacturer-advertised speeds achievable without the recommended workflow software, additional memory and other hardware? If not, does the extra cost of these things outweigh the productivity you lose without them, and is it more economical to invest in everything at the same time, or add it in a more modular way later? Are there additional fees to use workflow from third-parties?
Contract, service and maintenance fees
Do you understand exactly how the pricing in your contract works – with a base charge, potentially additional per-page fees, etc.? Are you tied into a minimum volume per month? Are charges calculated by sheet size, simplex vs duplex, colour vs mono? Are diagnostic sheets included?
As far as metallics and fluorescents go, are these different costs per page to traditional CMYK? What about waste sheets? Ensure that you discuss these with your account manager if you have questions.
What’s covered in your service agreement? Are analyst visits included if you need additional support? How quickly should someone arrive, and how is something escalated if that becomes necessary? If service is cheaper but slower, what losses could you incur elsewhere?
Where it comes to maintenance, who will perform routine tasks, how long do they take, and how often must they be done? Talk to your account manager about which jobs can be done in-house by self-service (whether this requires specific training or otherwise) and which should be left to the manufacturers.
Energy use
How energy-efficient and sustainable is your press? If you have the choice of two options and the cheapest uses twice the electricity, does that override the saving you might make on the lease?
Take a look at EPEAT and Energy Star ratings to get an idea of how different presses perform.
Wastage
How reliable is your press likely to be? How much are you going to have to put aside as waste? Are there ways you can cut down these risks with better quality presses, more internal automation and better pre-press workflows? Would it suit your business model to have an additional device as redundancy or for embellishment work?
Innovation
Are you buying a model nearing the end of its life, or is it something that is still being enhanced as the years pass, allowing for long-term support and potential upgrades? Future-proofing as best you can ensures you keep costs down in the future and remain competitive and profitable into the longer term.
Recent enhancements for the Iridesse, for example, including new Dry Ink and XLS handling, bode well for its future with ever-increasing creativity and flexibility.
Conclusion
There is no one-size-fits-all in the print industry. Your needs will vary depending on your customers, your print jobs, your facilities and your goals. Finding the right device for your next investment understandably takes time and discussion.
Ask the right questions, receive the correct answers, and the process of meeting your perfect press should be the start of a happy and profitable partnership. The proposal is just one part of the Total Cost of Ownership so read the small print and consider the rest of your costs.
To talk to us about anything in this blog, or to ask us how the Total Cost of Ownership for a Xerox device might compare to another product, please contact us.
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