HP’s new enterprise ink series offers multiple cost advantages

Christine Dunne and Barbara Richards
Apr 30, 2014

One of the most compelling aspects of HP’s new enterprise inkjet printer series is the devices’ pricing, running costs, and total cost of ownership. The Officejet Enterprise X page-wide series offers significant cost savings compared to color lasers with similar features and functionality. This is particularly important, given that cost concerns play a key role in customer decision making. This post looks at the benefits of the series from a pricing, cost per page, and total cost of ownership perspective.

Pricing

The new single function printers are priced at $749 and $1,199 (base models), while the MFPs range in price from $1,999 to $2,799 (base models). These are very attractive price points given the devices’ fast speeds, robust engines, networking capabilities, and other business-level features.

Key specs and pricing of HP’s new Officejet Enterprise X series

As shown in a recent InfoTrends analysis (see Table 3), several competitively priced laser devices have significantly lower speeds and higher suggested retail prices compared to the HP Officejet Enterprise X series. While the Officejet Enterprise X products are more expensive than their SMB equivalents–the $449 to $799 HP Officejet Pro X series introduced last year, they offer more features including full solutions support, customizable shortcuts, and an 8-inch touchscreen in the MFP models–features typically found in HP’s LaserJet Enterprise class of products.

 

Cost per page

InfoTrends research has revealed that many laser users believe inkjet technology is too expensive in an office or business setting. In a recent InfoTrends survey of U.S. laser users, for instance, the overwhelming majority said they agree with the statements that the running costs, cost per page, and replacement cost of ink are too expensive in a business environment.

Source: Is Inkjet Printing Technology Ready to Transform the U.S. Office Printing Environment?

Nevertheless, these new devices offer a cost per page that is up to 50% less per page compared with many color lasers. The recent InfoTrends’ analysis of these devices vs. several competitively priced laser devices (see Table 5) revealed that when all consumables are taken into account the HP models have a color cost per page of 5.5 cents, which is between 22% and 63% less than that of the competing models. In addition, the B&W cost per page is 1.1 cents, which is highly competitive with color laser devices.

Both cost per page amounts (CPPs) are improvements over HP’s Officejet Pro X series, which has a color CPP of 6.8 cents and a B&W CPP of 1.3 cents–though those costs are still up to 50% lower than competitively priced laser devices. Part of the reason HP can offer such a low CPP is because ink technology requires fewer consumables. No imaging units, fuser units, transfer belts, additional transfer rollers, fuser maintenance kits, drums, or transfer maintenance kits are required. In addition to the extra cost of these parts, more service visits may be required–which can cost even more money.

Total cost of ownership

Pricing and cost per page are important cost metrics, but total cost of ownership gives a more comprehensive view of a device’s cost. According to InfoTrends’ total cost of ownership analysis (page 19-20), the Officejet Enterprise X585 series offers a significantly lower total cost of ownership compared to other competitively priced laser devices. InfoTrends calculated total cost of ownership based on typical usage in a small business environment roughly (roughly 24,700 pages per year). The conclusion, based on the competitive models included in this report, was HP is the only vendor to hold total printing costs under $5,000 for a three-year period.

1-3 year total printing costs for small businesses (20-99 employees) – MFPs

With many organizations looking to cut back on spending, or prioritizing other IT investments, it is clear they may be receptive to the total cost of ownership benefits of these devices. Nevertheless, as many people do not understand the concept of total cost of ownership (which is often referred to as TCO), or cost per page for that matter, HP sales teams and authorized dealers will need to take the time to educate the customer. HP is already pushing the message of lower costs through its up to 50% less per page compared with color lasers messaging and ad campaigns. This message is extremely compelling and has already seen significant success with HP’s Officejet Pro X page-wide series. That being said, cost is not the only factor customers care about. Print quality, speed, ease of use, and solutions capability are a few of the other areas customers prioritize. These areas will be explored in our next blog post on the new Officejet Enterprise X series, as we will discuss the experience of using the color X585z MFP in our office.

This is the third in a series of posts about the new Officejet Enterprise X series. Read the first post here and the second post here.

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