When a customer buys a Ricoh device, the Total Cost of Ownership (TCO) includes the purchase price and the running costs over the lifetime of the product. The TCO is calculated in steps, using these costs and quantities: Cost of supplies and consumables Expected yield of supplies and consumables Document volumes Expected lifespan of the device Purchase price. Many different software tools are available, via the internet and from your sales manager, to help you calculate TCO. Four steps to calculate TCO There are basically four steps to calculate the TCO: Step 1: Calculate Cost Per Page (CPP) Step 2: Calculate average monthly running cost Step 3: Calculate lifetime running cost Step 4: Calculate TCO. You can use these steps to calculate the TCO of a Ricoh device and a competitor's device. The difference in TCO between different devices is an important part of the sales approach, when TCO is an advantage. This column contains the business overview. Step 1: Calculat...
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