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TA_Tech
05-08-2008, 09:29 PM
Hi Everybody

My company recently decided to start selling Triumph-Adler printers (aka Kyocera). Our first batch of printers arrived... the Kyocera FS-1300D. Looks like a great little machine, the only problem is the cost per print.

My manager has given me the task to research costing options for this machine. So any help that you guys can give me will be greatly appreciated.... I'm just a technician trying to impress the boss man with the hopes of oneday moving up in the company. Below is a brief summary of my costing problem.

To cover toner only and break even, we need to charge 17cents per print :eek: (South-African cents (7.59 Rand to the dollar - do the math if you like)). This is without compensating for call-out, labour, spares, etc.

Does anybody have any bright ideas on how i can reduce the price per print for this machine, and somehow compensate for time and material.

Thanking Anybody Who Replies In Advance

blackcat4866
05-09-2008, 03:08 AM
I don't agree with your math. Average price for a TK-132 is $74.00.
Divide that by 7,200 prints per cartridge (@ 5% fill) = .010277 per print.

I haven't had much luck pricing the three consumables on the web DK-130, DV-142U, FK-130U. But if we guess at $500 for the lot, that's 0.005 per print.

I don't know how you bill for labor, so I'll pull some more numbers out of the air: 2 hours labor @ $150 per hour = 0.003 per print

So that's a total of 0.018277 cost per copy. Add a penny for profit and your up to 3 cents per print. How does that add up to 17 cent per print for toner only? That's $1,224.00 per cartridge US dollars.

We don't take quite that large a markup.

=^..^=

TA_Tech
05-10-2008, 08:04 PM
Thank You Blackcat for your reply. Like I said, I appreciate any advise and suggestions.

Although I agree with your calculations, you did make one minor oversight... when I said 17cents, I'm talking South-african cents. If i had to convert that to American then my calculations would match to yours.

I've also made a slight mistake. It costs us 12c per print to cover toner only, and not 17c. this is still way too much, and if I compare my pricing to yours it is cheaper on your side, but I think thats only because of the price difference in toner and spares on your side of the planet. Here there are at least the mark ups on the price by the time we buy it.

Using your calculation and converting to South african it comes to 23c per print all inclusive, which is less than what our actual costing would be. This is way too high, as most of our other products go out on between 8 and 13cents per page all inclusive

blackcat4866
05-10-2008, 08:17 PM
I guess that leaves you two choices:

1) Don't offer service agreements

2) Look into other brands of printers.

Sorry, I wasn't aware the South African currency is also called dollars/cents. That explains alot of the difference.

=^..^=

TA_Tech
05-11-2008, 10:05 AM
If it were up to me I wouldn't offer service agreements on small A4/Ltr printers. I feel that the customers should buy these outright, with the 2 year extended warranty, and buy their own toner, or sign an agreement on a cost per print enough for us to cover the toner only and make some profit, and if the machine hassles, they should bring it in to our workshop for repairs, where we can repair under warranty at no cost to us and just a little cost to the customer for servicing in order to honour the warranty agreement. After 2 years the customer should pay for any further repairs needed. which should be enough to convince them to rather buy a new printer, thus generating even more revenue for my company. But yeah, this i think will only happen in a perfect world.

My other option is to look into suppliers of generic toner and spares, which I'm not a big fan of. And also, being a new model it will take a while anyway for generics to surface.

Two last things.... first thank you once again for your advice and suggestions, and second, South African currency is Rands and Cents. Just a little info to broaden your world knowledge.

Take care

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