Evaluating the Total Cost of Ownership for Plotters in SMB Businesses: HP vs. KIP

When investing in plotters for small business use, evaluating the Total Cost of Ownership (TCO) is crucial for making an informed decision that ensures long-term value. TCO goes beyond the initial purchase price and includes expenses associated with maintenance, consumables, downtime, energy consumption, and depreciation. In the world of wide-format printing, brands like HP and KIP stand out, particularly in small-to-medium business settings. Let’s dive into the factors that influence TCO and see how HP and KIP plotters measure up.

1. Initial Purchase Price and Leasing Options

The upfront cost of acquiring a plotter can vary significantly based on features, speed, and print quality. HP and KIP both offer models with a range of capabilities suited for small businesses.

• HP Plotters: Known for their versatility, HP plotters, particularly the DesignJet series, cater to businesses seeking high-quality prints with fine detail. Their prices often range from a few thousand dollars for basic models to over $10,000 for advanced options. HP also offers leasing programs that spread costs over time, which can be appealing for budget-conscious businesses.
• KIP Plotters: KIP models, like the KIP C700 series, are designed for high-volume, toner-based printing. They tend to have a higher upfront cost but are known for durability and speed, often better suited for environments with heavy print demands. Leasing is also available for KIP devices, providing flexible payment options that can make them more accessible.

2. Consumable Costs: Ink vs. Toner

One of the most significant contributors to TCO in wide-format printing is the cost of consumables. HP and KIP take different approaches, with HP utilizing inkjet technology and KIP using toner-based systems.

• HP Ink Costs: HP plotters generally require ink cartridges, which can be expensive over time. Although inkjet technology excels in color vibrancy and fine detail, ink costs can add up quickly, especially if printing in high volume.
• KIP Toner Costs: KIP’s toner-based plotters are typically more cost-effective per page than inkjet options. Toner cartridges generally yield more pages than ink and are less prone to issues like clogging, which can interrupt print jobs. For businesses printing mostly black-and-white documents or with heavy daily use, KIP’s toner approach can be a more economical choice.

3. Maintenance and Service Requirements

Maintenance is another essential part of TCO, as plotters are complex machines that require regular servicing to avoid costly downtime. HP and KIP differ in their maintenance needs due to their respective print technologies.

• HP Maintenance: Inkjet plotters require periodic cleaning of print heads to maintain print quality. For businesses with moderate print volumes, HP plotters can perform well with minimal downtime. HP also offers service contracts that cover routine maintenance, which can simplify cost planning and help avoid unexpected repair expenses.
• KIP Maintenance: KIP’s toner-based devices are generally more robust and require less frequent servicing. They are engineered for high-demand environments, so small businesses with significant printing needs may find KIP plotters to be a better long-term investment. Additionally, KIP’s service contracts tend to cover both preventative maintenance and major repairs, making them ideal for reducing unexpected costs.

4. Energy Consumption

Energy efficiency is often overlooked in TCO evaluations, yet it directly impacts operational expenses. Both HP and KIP have introduced energy-saving features, but there are some differences to consider.

• HP Energy Efficiency: HP plotters are designed with energy-saving features that automatically power down when not in use. For small businesses with intermittent print needs, this can significantly reduce electricity costs over time.
• KIP Energy Consumption: KIP plotters, while often more powerful, tend to use more energy due to their high-output design. However, newer models in the KIP lineup come with energy-efficient settings that reduce power consumption during idle times. For small businesses with high daily output, the slightly higher energy usage may be justified by the productivity gains.

5. Depreciation and Resale Value

Depreciation affects TCO, as a plotter’s resale value can offset some of the initial investment. HP and KIP devices retain value differently based on market demand and durability.

• HP Resale Value: HP DesignJet plotters generally hold their value well, particularly models geared toward high-quality color output. The resale market for HP is strong, so businesses can often recover a fair amount of their initial investment when upgrading.
• KIP Resale Value: KIP devices are more specialized and often cater to niche markets, meaning resale opportunities might be more limited. However, their durability and reputation in high-demand environments help retain value. KIP plotters often appeal to buyers needing robust machines, so they hold resale value better in heavy-use industries.

6. Calculating TCO Based on Use Case

Ultimately, calculating TCO requires factoring in a business’s specific printing needs. Here’s a simplified example for each:

Calculated TCO Based on Use Case

When calculating TCO for small businesses with specific print needs, understanding costs per square foot is essential. Let’s assume a monthly print volume of 1,500 square feet in black and 1,500 square feet in color for both HP and KIP plotters.

• HP Plotter Example: With HP’s average cost per square foot at $0.10 for black and $0.22 for color, monthly costs for consumables would be $150 for black and $330 for color, totaling $480. Over a year, consumable costs alone reach $5,760, not including maintenance or energy, making HP a solid choice for businesses needing vibrant color and fine detail.
• KIP Plotter Example: KIP plotters offer much lower costs per square foot, at $0.007 for black and $0.028 for color. This means monthly costs for 1,500 square feet each of black and color printing would be $10.50 for black and $42 for color, totaling $52.50 monthly. Annually, this amounts to just $630, a notable savings compared to HP. For businesses with high black-and-white volume needs, KIP provides a cost-effective solution.

This breakdown highlights how TCO can vary significantly depending on print technology and business requirements, making it important for small businesses to align their choice with both budget and output needs.

Summary

Evaluating TCO for plotters means looking beyond the purchase price to understand the full range of ongoing costs. HP and KIP offer solid options tailored to different printing environments, each with advantages depending on print volume, quality requirements, and cost management. For small businesses, making the right choice means assessing your specific needs to find a plotter that balances quality, efficiency, and total ownership costs.

Feel free to reach out to me if you need help apost@p4photel. Also visit our other Jersey Plotter blogs here. You can also visit my Linkedin page to know more about me and the service I offer.