Computer / Equipment Expenses |
12:49pm Dec 11, 2000 PST (#1 of 4)
Trying to budget computer expenses in C&P and every year our computer expenses go higher and higher. We are a mid size agency and our expenses this year are over $100,000.00. Is this normal? Can anybody give me input on what they should be?
Thank You.
Ed Miller
12:49pm Dec 11, 2000 PST (#2 of 4)
You should figure what your total computer inventory is and base your budget on operating supplies plus replacement of aging equipment. Supplies may fluxuate based on workload, but consumables are legitimate billable expenses. Replacement of existing computers and printers will depend on how you company depreciates computer equipment and how up-to-date your company tries to stay with technology. I would guess the lifespan of a graphics computer is 3-5 years. A bookkeeping or data entry station will age better. We try to replace equipment in the graphics department every three years. We use those machines for another two to three years in other less intensive areas. After that, the best of those machines are used for email servers, fax modem stations and less mission-critical areas. Overall, I would guess an up-to-date agency will replace 25 percent of its computer inventory on an annual basis. That's the figure I start with when negotiating a computer budget with management.
Larry Havranek
David & Associates
12:50pm Dec 11, 2000 PST (#3 of 4)
Well, we're a smaller agency that is preparing to become mid-sized. We typically spend $30-40,000 a year for computer software and hardware. Your figure seems high to me and if you're buying from computer catalogues like we are, you shouldn't be paying any more for equipment than we are. But, then again, I don't know your circumstances or your specialty. Companies who specialize in certain types of media tend to spend more.
Of course, when we're ramping up for a particularly challenging client and we know our equipment is not up to the task, our spending for the year increases. If your company has been in a period of constant growth, your expenses might be higher.
Hope this helps,
Kristi Long
Production Manager
Blair Communications
12:50pm Dec 11, 2000 PST (#4 of 4)
Computer expenses should be as much as it takes to keep competitive. There are way too may factors involved to make a recommendation based on your message. My advice is, if you don't have a person of staff dedicated to answering the question you have posed, get some outside help. Good luck.
Braford
Hanon McKendry Advertising
|
