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Starting Thanks largely to Michael Hint, starting summer 2014, ChemIT arranged for saving of over 1/3 of the cost of printer services offered for free produced on-going savings of $1,850 per year (a 40% savings on prices ChemIT involved in) to provide full-color printer services, for free, to Chem majors, in LarLars' s undergraduate (Mac) lab. This included providing procuring a new, second, full-color printer for almost nothing. |
Summary, July 2014
Challenge
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Find a way to reduce $5,800 annual printing costs for
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two color printers.
- This was critical to do following the decision by the Chemistry department to continue to not account for use by student, much less meter their use.
- Costs for just non-paper consumables was over $3,700 providing the portion ChemIT could control was around $4,625 per year.
Action, by ChemIT
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(Thank you, Michael Hint!)
- Enrolled in a service contract with Eastern.
- This
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- service provides us cheaper Xerox-branded consumables
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- .
- This included maintenance services for the printers, even if off-warranty.
- Bought a new, second color printer for a ninth of
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- its expected cost.
Result
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Effected recurring savings of almost
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$2,000 per year.
- Reduced costs by over $1,000 per year for just consumables through use of new service contract with Eastern.
- Saved $333 per year on warranty-type services, covering both printers. ($500/3 yrs * 2 printers)
- Accomplished this by not having to pay $500 for 3-year warranty service on new printer, or similar services for old printer, since service included with new service contract with Eastern.
- Saved ~$550 per year for new printer.
- A new printer was bought at 1/9th the expected price, giving the lab two, full color printers.
- Assume printer survives 4.5 years.
- Note 1: Paper costs remain as they were.
- Note 2: On-going actual savings assumes Eastern delivers on their service promises, of course.
Cost
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savings summary, PER YEAR
Item | Annual Cost | Annual Cost NOW | ANNUAL | ||
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Consumables ChemIT saved on | $3,736 | $2,718 | $1,018/yr | ||
Warranty-type services | $666(2 printers) | $333 | 0 | $333/yr | |
Printer Recent printer purchase, ammortized amortized over 4.5 years | $556 | $57 | $499/yr, | ||
Costs and SAVINGS, per year: | $4,625 | $2,775, | $1,850/yr (40% savings) | ||
Paper | Unknown | (no ChemIT involvement) Assume: $4.73/ 500 pages | $1,200 (estimate) | $1,200 (same costs)Unchanged | No change expected |
Costs and SAVINGS, per year: | $4$5,958825 | $3, 108957 | $1,850/yr (32% savings) |
NOTE: On-going actual savings assumes Eastern delivers on their service promises, of course.
DETAILS
(1) Saving on consumables costs
ChemIT
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arranged for saving ~$1,000 per year by moving to Eastern service contract
We are now on Eastern service contract, so our consumables cost less. And our service costs are largely fixed, and also less.
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Type of printing | Eastern's charges, | Page counts, as of 7/24/14 | Costs $ |
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B&W, or little color | 0.7 cents | 200,000 | 1,400 |
More color | 2.5 cents | 65,000 | 1,625 |
Full color | 5.5 cents | 15,000 | 825 |
(2) Saving on capitalization costs
New Xerox printer bought by ChemIT for less than 1/9th the expected price.
New printer, with 3-year warranty, was expected to cost $2,500. During the summer 2014, Michael Hint bought the printer for $256.56!
- Did this through loyalty rebate ($1,443.91) and trade-in ($224.75) of (old, broken Abruna) printer to Xerox.
- Did not buy the extra warranty (~$500 for 3 years), since under Eastern service contract. So price of printer was $1,925.22, not the expected $2,500.
- This gives Lars' s undergraduate lab two Xerox color printers. This new printer displaced a B&W HP printer, which went to Dan Lorey.
(3) Assumption: No change in costs of paper.
Paper costs holding steady at $1,670/year.
ChemIT not involved at all on paper procurement. Did not invest in determine actual costs, so made estimates based on assumptions stated below.
Paper sold by CCB stockroom is $4.73 for ream (500 pages) of 8-1/2"*11" paper.
- Thus: $0.00946/ paper. (That's 0.946 cents per paper page.)
- To get paper used, used snapshot that 148,666 paper was used to print 231,116 imprints (due to double-sided jobs), or 64.3%.
- Of 280,000 pages printed, can estimate 180,000 paper sheets used (due to double-sided jobs).
- Of 180,000 paper sheets used over 17 months, that comes out to about 127,000 paper sheets used per year.
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