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Cost Benefit Models Sending documents: fax vs. mail vs. modem Receipt of faxes: plain paper fax / thermal fax machines Duplexing as a source reduction cost savings mechanism Use of C-fold towels compared to roll towels |
 The analysis below shows that faxing is less expensive than mailing and that using a computer fax/modem is the least expensive, saves the most time and accomplishes the most source reduction. It must be noted that the more pages that are faxed the lower the costs will be. However, for mailed pages the cost per page stays constant.
1. Equipment: Assuming 100 faxes/month and a 5 year life or 6000 faxes
2. Labor/supplies to operate the Fax machine or the Fax modem: On the average, most fax machines transmit at 15 seconds per page. Assuming that a secretary with a salary of $12/hour ($.20/minute; $.00333/second) operates the machine and remains at machine to operate ft for 20 seconds (number dial plus fax transmission time) a per page cost of $.07 cents is calculated. The cost of paper varies from $2.69 to $4.69 per ream (500 sheets) for 20 pound copy paper. Using an average price ($3.69) a price of $.0074 per page is calculated. It is also assumed that one copy of the modem faxed page is produced for file. Labor/supplies for mailing: Assuming that a secretary with a salary of $12/hour , ($.20/minute; $.00333/second) takes approximately 40 seconds to fold, stuff and address envelope or $.13/page. Cost of paper is $.0074/page and the cost of envelope averages $0.01/envelope for supply cost of $.02/page. 3. Phone line charges: Installation of separate phone line is approximately $110. Over the life of the fax machine (5 years and 6,000 pages) translates to a cost of slightly less than $.02 cents per page. The monthly fee of $12/month translates to a cost of approximately $.12/page if 100 copies a month are transmitted.
1. Equipment: Assuming 100 faxes/month and a 5 year life or 6000 faxes
2. Labor/supplies to operate the Fax machine or the Fax modem: On the average, most fax machines transmit at 15 seconds per page. Assuming that a secretary with a salary of $12/hour ($.20/minute; $.00333/second) operates the machine and remains at machine to operate ft for 20 seconds (number dial plus fax transmission time) a per page cost of $.07 cents is calculated. The cost of paper varies from $2.69 to $4.69 per ream (500 sheets) for 20 pound copy paper. Using an average price ($3.69) a price of $.0074 per page is calculated. It is also assumed that one copy of the modem-faxed page is produced for file. Labor/supplies for mailing: Assuming that a secretary with a salary of $12/hour ($.20/minute; $.00333/second) takes approximately 40 seconds to fold, stuff and address envelope or $.13/page. Cost of paper is $.0074/page and the cost of envelope averages $0.01/envelope for supply cost of $.02/page. 3. Phone line charges: Installation of separate phone line is approximately $110. Over the life of the fax machine (5 years and 6,000 pages) translates to a cost of slightly less than $.02 cents per page. The monthly fee of $12/month translates to a cost of approximately $.02/page if 500 copies a month are transmitted. |
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 This analysis compares the costs and benefit of receiving faxes on a plain paper fax vs. those received on a thermal fax machine. The thermal fax machine has a lower capital cost however, most office personnel copy incoming thermal faxes onto regular copy paper causing the operating costs for the thermal fax to be more than twice as high as the plain paper fax. The following chart shows the operating costs of a plain paper fax and a thermal fax machine and copying every sheet from the thermal fax machine onto laser copy paper. The total operating costs have also been calculated if the operator uses scrap in the fax machine and the copier (as an example, paper that has already been used on one side). The analysis is shown for 200 copies a month and 500 copies a month. |
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| Costs ($) | |||||||
| Machine Type | Plain paper |
Therm. paper |
Copy labor (3) |
Phone line (4) |
Oper. scrap paper |
Total oper. |
|
| Panasonic, plain, 200 copies/month | 2.00 | 14.00 | 14.00 | 16.00 | |||
| Panasonic, plain, 500 copies/month | 5.00 | 12.00 | 12.00 | 17.00 | |||
| Brother plain, 200 copies/month | 2.00 | 14.00 | 14.00 | 16.00 | |||
| Brother plain, 500 copies/month | 5.00 | 12.00 | 12.00 | 17.00 | |||
| Brother thermal, 200 copies/month | 2.00 | 10.00 | 14.00 | 14.00 | 38.00 | 40.00 | |
| Brother thermal, 500 copies/month | 5.00 | 25.00 | 35.00 | 12.00 | 77.00 | 77.00 | |
| 1. Prices of 20 bond laser copy (recycled)
range from $2.69 to $4.69 per ream (500 sheets). An
average price ($3.69) per ream or $0.01 per page is used;
times 200 or 500 copies monthly. 2. Prices for 164 feet (179) sheets of thermal fax paper are $8.99 for a cost of $0.05 per sheet; time 200 or 500 copies monthly. 3. Assuming a secretary with a salary of $12/hour ($.20/minute; $.003/second) who takes approximately 20 seconds to make a copy = $.07/page times 200 or 500 copies. 4. Phone line charges: Approximately $110 for installation of a separate phone line -and the monthly usage fee is approximately $12/month. The installation fee of $1 1 0 over the five year life of the fax machine translates to a cost of $0.01 per page when 200 copies are made and a cost of .004 per page when 500 copies are made. The monthly fee of $12/month translates to a cost of approximately $.06 cents per page for 200 copies per month and $.02 for 500 copies per month. Total phone line costs for 200 copies per month $.07 per page and $.02 per page for 500 copies per month. Using these numbers, the following chart demonstrates the number of months ft takes to make up the cost differential of a plain paper tax and a thermal fax. These calculations are prepared using a moderately priced Brother plain paper fax and a Panasonic plain paper fax which is 'top of the line" for $1,286. The thermal fax machine price for a Brother Thermal fax machine from Office Max is $299.00. |
| Machine Type | Mach. cost |
Purch. cost diff. |
Oper. cost. diff. 200 copies month |
Oper. cost. diff. 500 copies month |
No. months to makeup diff. 200 copies month (1) |
No. months to makeup diff. 200 copies month |
|
| Panasonic, plain paper | $1286 | $987 | $24 | $50 | 41 | 16 | |
| Brother plain paper | $599 | $300 | $24 | $60 | 12 | 5 | |
| Brother thermal fax | $299 | NA |
