Issue #0815/1 – With two new A3 colour MFPs (Hewlett-Packard CM6040F and Lexmark X945e) now available in the printer channel, there is more choice for organisations both in regard to which machine to adopt and also how to acquire the device. The most direct competitors from the copier channel are Canon’s iRC4580i, Konica Minolta’s bizhub C451, Kyocera’s KM-C4035E, Ricoh’s MPC4500, Sharp’s 4500N and Xerox’s WorkCentre 7655.
Last week’s article, "Hewlett-Packard and Lexmark launch fast A3 Colour MFPs into the printer channel", compared these two new printer-based A3 colour MFPs and demonstrated the significant difference in Total Cost of Printing between the two. Comment was also made regarding the fact that there are other devices on the market that also fit the same usage patterns as the Hewlett-Packard CM6040F and Lexmark’s X945e but that are sold through the traditional copier channel under contract rather than the buy-and-feed model of the printer channel.
So, this week, we size up the contract competition and investigate the comparative costs of contract against buy-and-feed.
While narrowing the field down, we find that colour print speed varies a little amongst the most closely competing copier-based machines, from 35ppm to 45ppm. Of the six models shown, the Canon iRC4580i, Ricoh MPC4500 and Xerox WorkCentre 7655 fall at exactly 40ppm in colour with only the Konica Minolta bizhub C451 coming in with a higher print colour speed (45ppm). The WorkCentre 7655 actually has the fastest mono print speed, by a considerable margin, at 55ppm.
These differences are relatively minor and insignificant though in comparison to the variations found in paper capacity – both standard and maximum – where the machines fall into two distinct categories.
Firstly, the Konica Minolta bizhub C451 and Xerox WorkCentre 7655 both have a high standard paper input capacity (in excess of 3,000 pages) and also have five paper sources in the basic configuration. This high initial capacity is then further extended by the addition of a high capacity paper feed (total six sources) that takes the maximum capacity considerably higher.
In the case of the bizhub C451, this paper capacity is the highest in the group at 6,650 sheets – more than 1,000 sheets (nearly 20%) higher than the next highest model in the group (Sharp MX4500N).
Ricoh Aficio MPC hasa low paper capacity
Perhaps this indicates the flexibility of the Sharp device for the customer, with a low standard paper capacity of just 1,100 sheets from three sources but with the possibility of pushing that up to 5,600 sheets with the addition of a further three sources.
Two other MFPs in the group have a low paper capacity, also 1,100 sheets. These are the Kyocera and Ricoh machines. In each case the maximum capacity is also low, with the Ricoh MP C4500 having the lowest maximum capacity – only just over 4,000 sheets and from only four sources.
Canon’s iRC4580i also shows a fair degree of media flexibility with a low initial capacity of 1,200 sheets from just three sources but rising to a fair 5,000 sheets from a high six sources.
| Uk - A3 Colour MFP |
Print Speed Mono |
Print Speed Colour |
Standard Paper Capacity |
Maximum Paper Capacity |
|---|---|---|---|---|
| Canon iRC4580i | 45 ppm | 40 ppm |
1,200 sheets 3 sources |
5,000 sheets 6 sources |
| Konica Minolta bizhub C451 | 45 ppm | 45 ppm |
3,650 sheets 5 sources |
6,650 sheets 6 sources |
| Kyocera KM-C4035E | 40 ppm | 35 ppm |
1,100 sheets 3 sources |
4,100 sheets 4 sources |
| Ricoh Aficio MPC4500 | 45 ppm | 40 ppm |
1,100 sheets 3 sources |
3,100 sheets 4 sources |
| Sharp MX4500N | 45 ppm | 35 ppm |
1,100 sheets 3 sources |
5,600 sheets 6 sources |
| Xerox WorkCentre 7655 | 55 ppm | 40 ppm |
3,260 sheets 5 sources |
5,260 sheets 6 sources |
Considering the other hardware features, we find that all the models in question are equipped with an Automatic Document Feed on the scan unit and duplex printing capability, thus comparing well with the two printer-based MFPs.
Likewise, they are all network-ready as standard but some have additional interfaces provided on the base unit. For instance, while the Xerox device is not fitted with any other interface, the Konica Minolta bizhub is equipped with Gigabit network interface and a USB2.0 interface.
Konica Minolta bizhub C451 is stylish,has a high paper capacity and high print
speed, topped with Gigabit networking
All these devices offer the basic PCL support through an emulation. Most offer PCL5c and PCL6 though Konica Minolta appears not to extend to a PCL5 emulation but the Kyocera model handles PCL5e as well as PCL5c.
Interestingly, neither Ricoh nor Sharp provide a PostScript capability as a standard feature but both offer it as an option. Ricoh’s offering is true Adobe PostScript whereas all the others settle for an emulation.
On top of these Page Description Languages (PDLs), several of the devices offer a variety of other printing functions that could prove useful to customers. For instance, direct PDF printing is available from Konica Minolta, Sharp and Xerox while Sharp also adds a direct printing capability from USB sticks and from TIFF and JPEG files. Indeed, Konica Minolta’s bizhub C451 goes as far as offering direct print capability from PCL and PostScript files as well as encrypted PDFs and TIFF files.
One other area where Konica Minolta offers a unique feature is in full bleed (edge-to-edge) printing. It is believed that Konica Minolta is the only company to offer this function on a laser printer! It is usually ruled out as producing too much waste toner (from printing over the edge of the paper) to be a viable proposition.
This leads us to the final hardware matter of significance – bringing us full circle back to paper handling but, this time, paper output instead of input.
Where high level MFPs are concerned, finishing is of every bit as much significance as paper input and functions such as booklet making and folding can make a huge difference to which machine will best suit a particular hard copy need.
Some of these devices offer only basic finishing functions, such as the Canon iRC4580i, which offers stapling and saddle-stitching but nothing else. Others, such as the Konica Minolta bizhub C451 offer a wide range of options (not necessarily all from the same finishing unit). Konica Minolta’s range of features includes job offset collating, grouping, sorting, stapling, punching, centre-fold and booklet printing.
Xerox WorkCentre 7655 has a highmono print speed, fairly high
paper capacity and advanced
finishing capabilities
First and foremost, under the contract scheme, there is (preferably) no capital purchase of the hardware, although this does vary. For the purposes of this investigation, we will assume that the capital cost is handled by a lease scheme with toner and servicing covered by a Cost Per Page contract.
We will also take a typical average cost rather than attempting to identify precise leasing and contract costs for each of the machines above. Part of the reason for doing this is that making direct comparisons is always difficult because the contract pricing is different in every instance for every customer, depending on a number of factors.
Based on expected print volume, the contract will usually specify a number of pages per month or quarter – agreed between dealer and customer. This is one of the main attractions of entering into a contract – the monthly bill is regular, consistent and predictable, meaning that the customer can budget accurately and manage the cash flow with some degree of certainty. It removes any element of ‘ticket-shock’ or the short-term embarrassment of being faced with a large bill for four colour toners, a set of OPC drums, a fuser unit and a transfer kit all at the same time – and, let’s face it, that could be a bill for the best part of £1,500!!
This also means that capacity of the toner cartridges is a little less critical than with a buy-and-feed acquisition because the toner is provided under the contract rather than as individual purchases. At this level of device and customer print volumes, the CPP figures applied are based more on market conditions and the value-add, in terms of service and maintenance, that the dealer applies to the contract than on the intrinsic cost of the toner cartridge itself.
Where low toner capacity does make a difference (such as the 7,000-page colour toner and 15,000-page black toner in the Kyocera KM-C4305) is in the increased number of interventions expected over the life of the machine to change exhausted toners. In this respect, there is no difference between purchase methods.
A distinct downside to the contract approach is the potential for abuse, resulting in customers being overcharged for their printing activities. Pressure on salespeople to achieve the sale at a healthy profit is intense and not a pressure that necessarily results in competitive pricing.
However, that aside, because every dealer handles every sale on an individual basis, with individual conditions taken into account, it becomes very important for potential customers to obtain quotations from several dealers for comparison, making sure that the conditions of each contract are clearly specified and understood.
Cost Per Page (CPP) for mono printing under a contract in the UK will typically cost customers somewhere between 0.35 pence per page for a very competitive quote, rising up to about 0.5 pence per page in situations where competition is less intense. Similarly, CPP for colour printing falls between about 4.5 pence and 5 pence per page.
As an exception to the rule, apparently Konica Minolta is attempting to buy market share with colour CPPs that can fall below the 4 pence level.
So, if we reckon that a monthly page count of 10,000 pages will bring us a contract rate of 0.5 pence per black page and 5 pence per colour page, while a monthly page count of 15,000 pages gives us the more competitive 0.35 pence per mono page and 4.5 pence per colour page, we can make a couple of comparisons with the printer-based devices from Hewlett-Packard and Lexmark.
One additional adjustment we need to make for this comparison is to run the calculations over a five year period because the typical lease term for the copier-based MFPs is more likely to be five years than three.
Monthly repayments on a lease for a device of this nature would be in the order of £350 to £400. Over the period of five years, this adds up to a hardware outlay of £7,000 to £8,000 – or 41% to 61% higher than the capital outlay on the purchase of a Hewlett-Packard Colour LaserJet CM6040f.
What we discover first when looking at the ongoing Cost of Printing is that the nominal CPP from Hewlett-Packard is very competitive with the contract charge, based on 10,000 pages per month and the less competitive contract CPP for the copier-based MFPs.
Taking the total expenditure and Total Cost of Printing over five years, we see that this calculates out to an advantage for Hewlett-Packard of about 18% over a typical copier MFP. Lexmark, on the other hand, is disadvantaged all round, with nominal CPPs (especially mono) that are as much as 49% higher, resulting in a long-term Cost of Printing that is 5% higher even than the contract cost.
Total Cost of Printing
Moving to a more competitive pricing structure in the contract, assuming a monthly print volume of 15,000 pages, again over five years, we find that the contract CPP in both mono and colour are lower than the nominal CPP from Hewlett-Packard but resulting in a long-term Cost of Printing that is only just adrift of the cost of running the Hewlett-Packard Colour LaserJet CM6040f over five years.
It comes and no surprise however, that this higher print volume, with more competitive contract CPPs for the copier-based MFP, leaves the Lexmark X945e firmly high and dry in comparison with both CM6040f and the contract MFP option.
Total Cost of Printing
Ultimately then, working under contract does not appear to benefit the customer financially to any great degree – as long as the printer-based device chosen is competitive in itself (i.e. not Lexmark!) and unless a particularly competitive contract can be negotiated.
But, there is benefit available in terms of budgeting and cash flow and more competitive rates will, of course, be available to large organisations with large numbers of machines.
It must be emphasised that the figures quoted for the copier-based MFPs are based on aggregated, typical and average prices – some MFPs in certain usage conditions might attract more competitive quotes while others might attract less competitive quotes.
To round off, out of these six MFPs, it seems clear that the Konica Minolta bizhub C451 and Xerox WorkCentre 7655 are the most highly specified and most capable of the devices overall. They also compare favourably in most respects against Hewlett-Packard’s Colour LaserJet CM6040f. For customers considering acquiring MFPs in this category, it is these three machines that would most warrant closer investigation on the Cost of Printing.
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