Total Cost of Ownership (TCO) sounds like a highly abstract concept. But it’s really not. It’s also something that churches—sadly—tend to miss out on. TCO is simply a calculation of what a particular product or service is going to cost you during its life. TCO has become popular in automotive circles, with some manufacturers boasting about the fact that while their car might cost a little more to buy, it will cost less to own. At least in theory.

Missing TCO Calculations

TCO can be missed in several ways. Sometimes, a church will buy a particular piece of gear—sometimes a very expensive piece—that will dig into their cash reserves pretty significantly. Projectors are a great example of this. A really bright, say 15K, projector can cost well over \$20,000-50,000. That’s a lot of money. However, it will also cost somewhere between \$2,000 and \$6,000 to re-lamp it. And at that brightness level, re-lamping is going to happen every 500-800 hours of use, which is right around a year (at least for many churches).

So not only did you spend, let’s call it \$30K, on a projector, you can figure on another \$20K in lamps over the next 5-7 years of life. And we haven’t even talked about filter replacements, electricity costs or service. Costs on this imaginary projector (that’s not that imaginary) will easily exceed \$60K over the life of the unit. Did anyone think about that or did the initial purchase price double as a complete surprise?

Other times, a church will buy the cheapest piece of gear they can find, thinking they are saving money. However, what they find out is that the consumables cost of that gear is far more expensive than a slightly more expensive piece of gear. Ink jet printers are a classic example here. I’ve seen churches replace older, heavy duty color laser printers with newer “cheaper” ones because the toner cartridges are 1/2 the cost of the old ones. What no one noticed was that the new cartridges print about 1/8 as many pages, which quadruples the per page costs and irritates the users who find the printers always out of toner.