Articles

"Consider the Hidden Costs When You Purchase Technology-Based Products"
By: Arnie Hoffman, VersaCom

Whether you are purchasing an inkjet printer or other printer or a copying machine or some other technology related equipment, be sure to consider some of these potential hidden costs and how they may affect your cost of ownership. 

Some manufacturers impose restrictions that limit your choices for supplies and support.  Other manufacturers support the client’s right to flexibility thereby possibly reducing the client’s cost of ownership. 

There are manufacturers that impose restrictions that not only can cost your company thousands of dollars, they restrict your right to choose the best and least costly service vendor.  Others may burden you with purchasing diagnostic software and regular software updates that don’t improve the functionality of your equipment or the improved functionality is not required by your business or even worse, may cause compatibility issues or force you to make expensive hardware additions to run the new software that you did not want in the first place. 

It is always a good idea to check on your equipment/software supplier’s policies.  Always get them to put the policies in writing and ask that these be signed by someone other than a sales person.  Some will state anything the buyer wants to hear just to get the sale. 

1.       The cost of consumable supplies such as toner, ink cartridges, and imaging drums.

Are less costly supplies available from third party manufacturers.  Often they are.  If so, how does their use affect your manufacturer’s warranty?  Beware, in many instances there may be a clause in your warranty stating that the use of third party consumables will invalidate the manufacturer’s warranty even though the third party supplies fully meet or even exceed the manufacturer’s specifications.  Do you really want to purchase equipment from a restrictive supplier such as this? 

2.       The cost of the warranty or extended warranty from the manufacturer versus an independent service provider.

Independent service companies may be able to service your equipment with faster response times, offering extended service hours and days, and even with personnel trained by the manufacturer.  All, while charging you less money for warranty coverage.  Does your equipment manufacturer support your company’s right to choose the best service provider by delivering warranty replacement parts in a timely fashion just as the company would for their own service technicians?  Does having the service company of your choice invalidate any terms of the warranty and your right to the manufacturer’s technical support center?  

3.       The issue of diagnostic software.

Some of the sophisticated technology equipment you may purchase may require special diagnostic software routines to pinpoint the cause of a problem.  Are these diagnostic routines available to you or the service provider you prefer without cost, or are they restricted for the equipment manufacturer’s own maintenance personnel?  You should have a choice of who repairs your equipment and you should have an assurance that whoever will maintain your equipment will have access to the needed diagnostic software to get you up and running in the shortest length of time possible. 

4.       Software updates.

To many of us, it seems whenever we purchase software, we are really purchasing a subscription because we are regularly urged to purchase the most recent upgrade.  Often there is no improvement in functionality between software revisions, just patches to software problems that never should have been there in the first place.  So, why should you have to pay for the update?   Just another possible hidden cost you should ask your supplier about. 

Next comes the issue of software support services.  Many suppliers will only provide software support on the last two or three software releases.  What happens to your company when it decides it does not need the additional “functionality” of the new releases.  What does it do for software support?  How does not having the most recent software releases effect other maintenance and support issues? 

5.       Check that warranty.

Is the manufacturer’s warranty an onsite warranty with specified response times provided for and is there an assurance of parts availability?  If the only warranty is a mail in warranty, is there a guarantee that a replacement unit will be shipped via overnight service, or do you have to wait until your specific equipment is repaired and returned to you?  Can you afford to be without the capabilities of your equipment for that length of time?  Probably not, or you would not have made the purchase in the first place. 

Some manufacturers support their client’s right to elect to receive support from independent service suppliers by working with them to provide the tools and parts needed to insure you benefit from the lowest cost of ownership.  Many suppliers allow for “third party” manufactured consumable supplies be used without invalidating warranties.  Some manufacturers have more restrictive policies.  Before you make an important purchase, be sure to investigate what policies are in effect that will insure you enjoy the lowest cost of ownership possible.

 

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