To: VPs, Deans, Department Chairs, and Directors
From: Office of Information Technology
Re: Hardware Repair of Inkjet Printers Valued at $399 and Below Discontinued
Date: January 13, 2005
Effective July 1, 2005 hardware support for Inkjet Printers whose replacement cost is $399 or less will no longer be covered for hardware maintenance. This change reflects:
1) the mandatory mid-year budget cut and is predicated on the dramatic increase in repair costs for this type of equipment
2) the high cost of operation ($.068 per page for ink-jet printing vs. $.011 per page for laser printing – a more detailed analysis has been provided in an attached document)
3) the rapidly falling cost of replacement equipment that offers equivalent or greater functionality.
OIT will continue to offer software support for low-end inkjet printers but hardware support will no longer be available.
Technology innovation and competitive market pressure has caused many inkjet printers to become commodity items. Once the unit breaks often the only option for repair is replacement. Older inkjet printers are increasingly costly to operate and difficult to repair which means that replacement becomes the only viable option as manufacturers no longer stock repair parts. Equipment manufacturers are, in some cases reflecting this trend by selling printers with no serviceable parts meaning that the only option to failure is replacement.
The cost of inkjet-style printers vary widely, but in nearly all cases the cost of this style of printer has dropped significantly in the last few years. It is now common to find situations where dispatching a technician to work on an inkjet printer is more expensive than simply replacing the printer. For example, many customers have purchased low-end inkjet printers for their offices that range from $50 - $399. If a technician is dispatched on a $200 printer, the cost to dispatch the technician is equivalent to 45% of the original cost of the printer and does not include necessary repair parts.
In summary - effective July 1, 2005, if a low-end inkjet
printer (replacement cost of $399 or less) becomes non-functional due to
hardware failure the owning department will have the choice of:
1) sending the printer to the company for replacement/repair (if under warranty)
2) repairing the printer at departmental cost (if no warrantee)
3) purchasing a replacement printer
4) eliminating the printer in favor of using an existing central printer (for example a departmental networked printer)
If you have questions or concerns regarding inkjet printer support, please contact Yancy Phillips at x4248.
Attachment 1
Cost of Operation - Comparison
As noted in the accompanying memo, the cost of ownership and operation was a factor in the decision to discontinue maintenance support for low-end inkjet printers. Industry studies show that the average cost per page for inkjet printers is about $0.068 as compared to about $0.011 for laser printers. To put this into perspective, here are some cost comparisons based on number of prints using the average cost per page of both types of printers:
One Year Printer Costs:
|
Printer Type |
Initial Printer Cost |
Cost per Print |
Number of Prints in One Year |
Print Costs |
One Year Printer and Print Costs |
|
|
Inkjet |
$150 |
$0.068 |
5000 |
$340 |
$490 |
|
|
Laser |
$500 |
$0.011 |
5000 |
$55 |
$555 |
|
Two Year Printer Costs:
|
Printer Type |
Initial Printer Cost |
Cost per Print |
Number of Prints in Two Years |
Print Costs |
Two Year Printer and Print Costs |
|
|
Inkjet |
$150 |
$0.068 |
10000 |
$680 |
$830 |
|
|
Laser |
$500 |
$0.011 |
10000 |
$110 |
$610 |
|
As shown in the tables above, while the initial cost of the inkjet printer is lower than the laser printer, the laser printer becomes more economical during the second year and beyond based on the per/print cost.