Using TCPP (TRUE Cost Per Page) To Crush Your Competitors

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Most Assessments based on Cost Per Page only include the costs of toner, service and parts. Using  TCPP (TRUE Cost Per Page) in your assessments can help customers to understand the true cost of their printing and help you to crush your competitors as you jockey for new business.

“What is TCPP?” you might ask. I’m glad you did!  TCPP factors in other hard costs required to produce a printed page.  You can’t print without a printer, MFD, paper or power so those costs are added in to the equation.  The customer has to pay them, so breaking them into the CPP is the fair thing to do.  Those who are masters at assessment selling understand that it’s not only fair but that helping a customer understand TCPP helps them to win far more deals. 

Still a bit cloudy on TCPP? Let’s look an example:

  • MFD lease/month: $600.
  • Power Consumption/month: $13
  • Physical paper costs: $.007/sheet
  • CPP (including toner, service, and consumable parts):  .01 mono
  • Volumes/month: 6,000 mono
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Fact:

Improving utilization decreases TCPP

Pretty good CPP rates, right? Most sales reps sell the customer on how inexpensive the CPP rates are.  But let’s do the math on the above equation to illustrate the TRUE Cost Per Page:

  • Monthly equipment lease amount divided by monthly volume: $600/6,000 = .1
  • Physical paper per page: .007 
  • CPP rate:  .01
  • TRUE CPP: .12, or TWELVE CENTS PER PAGE!

12 cents a page is a far cry from a penny a page, fully 12 times what is sold to the customer.  Let’s say the device in the example has a duty cycle of 20,000 page per month.  What happens if we have drive the device to the higher utilization rates it was built for?  It will reduce the TRUE CPP!  Here is some more math, math the customer is going to like a whole lot more:

  • Volumes/month after consolidation: 15,000 month
  • Monthly equipment lease amount divided by monthly volume: $600/15,000 = .04
  • Physical paper per page: .007 
  • CPP rate:  .01
  • TRUE CPP: .057, or FIVE  CENTS PER PAGE!
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TCPP

Will get you paid more and more often.

Do you think your customer is going to like that number better?  You know they will!  After calculating TCPP and modifying the environment to get to a more realistic number based on what volume dictates it should be, we earn trust.  Now when we tell a customer they should consolidate their devices, that they may have too many printers, that their big iron is getting use the way it should, they’ll listen.  Nobody wants to pay 12 cents a page and they’ll work with you to get it down to where it should be.

If you want to win more business based on assessment selling, it’s easier than you think.  If you would like to learn more about TCPP or other proven elements of assessment selling we’re here to help.

Now it’s your turn!  Are there other things you would include in TCPP? Do you think that TCPP takes away too much mystery in your sales process? Do you have other assessment tricks of the trade you’d like to share?  Your voice matters so leave your comments and make this a conversation!
 

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