Fax2Email – the cheaper solution

As sufficient as stand-alone fax machines may be, it is currently an expense for users that is not necessary as there are much more cost effective options available that operate with the same, if not better efficiency.

Cost saving comparison

Fax Machine to Fax Machine

Cost to Sender = R0.99/min…….Cost to Receiver = R2.05/min

When sending a fax from a fax machine to a fax machine, the sender is charged R 0.99 per minute (Telkom rate). The receiver of the fax is charged R 2.05 per minute (This rate was calculated to include all costs for maintaining a fax machine. Please see the excel spread sheet on page 3 for more details).

• If the fax is coming from an external source, the fax will cost a user R 2.05 per minute to receive that fax.
• If the fax is coming from an internal source, the fax will cost a user R 3.04 per minute (R 0.99 + R 2.05) to receive that fax.

Fax Machine to Smiley Fax Fax2Email number

Cost to Sender = R1.82/min…….Cost to Receiver = R0.00/min

When sending a fax from a fax machine to a Smiley Fax Fax2Email number, the sender is charged R 1.82 per minute (Telkom rate). The receiver of the fax is charged R 0.00 per minute (zero).

• If the fax is coming from an external source, the fax will cost a user R 0.00 (zero) per minute to receive that fax.
• If the fax is coming from an internal source, the fax will cost a user R 1.82 per minute (R0.00 + R1.82) to receive that fax.

Therefore:

• If the fax is coming from an external source, a user will save R 2.05 per minute, per fax when using Smiley Fax.
• If the fax is coming from an internal source, a user will save R 1.22 per minute, per fax when using Smiley Fax.

Cost benefit analysis upon switching to Smiley Fax

As stated in the cost analysis below, the average cost for a received fax is estimated at R 2.05 per fax. Assuming that a SMME has 25 people per company and the company receives on average 10 faxes per person per month, the total number of faxes will be 250 faxes per month. This calculates to 3000 faxes per year. At a cost of R2.05 per fax, this equates to over R 6000 per annum.

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The Smiley Fax service is for free and the only indirect cost to the company could be the change of business cards or letterheads.

• Recent print quotations indicated a cost of R 399 per 500 business cards.

Re-printing the business cards for the hole company would cost therefore 25 people x R 399 = R 9975. 1000 Letterheads printed will be in the region of R 990. As a total cost to communicate the change of fax numbers, it amounts to +/- R 6000. Thus it may seem that there is no advantage to the procurement of Smiley Fax, as these two costs do not differ.

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However, the standard cost of fax (fax machine, line rental etc.) amounting to R6000 p/a is a recurring cost, whereas the expenditure occurred on reprinting etc. when switching to Smiley Fax is a once off cost. In any event, most companies tend to re-print stationery annually and thus it seems to be a cost that is not necessarily directly linked to Smiley Fax in a ubiquitous sense.

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Other issues to be taken into consideration are perhaps the problems associated with the transfer of printed documentation to an electronic document format such as scanning and storage. A major advantage of Smiley Fax is the fact that documents already appear in an electronic format, and thus no conversion or conversion time is required.