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I used to do quite a bit of calculating ROI for microfilming.  Haven't done
much of it in the last several years but the concepts haven't changed.  My
formula was something on the lines of:

Prep/Filming + Film + Processing = Cost of Filming
Monthly Storage Fee x Retention + Access + Incidentals = Cost of Paper
Retention
Cost of Filming/Cost of Paper Retention = ROI Delta (Less than 1.0 retain
paper, greater than 1.0 Film)
Break even point = Storage timeframe x ROI factor.

Contents based on standard 1 cu./ft. records storage box.

Following are examples:

Example 1: Boxes of travel expense documents including reimbursement claim
forms and receipts. 2500 images/5 yrs remain of a 6 yr retention:
Filming:  Prep/Filming expense(.05/image or $125) + 2 original films
($15.00) = Processing (10.00) = $150.00
Paper Storage: Storage @$0.75/month x 60 months ($45.00) + 2 access charges
@ $10.00 ($20.00) + incidentals @ $1.25 index fee and $4.50 permanent
removal fee ($5.75) = $70.75
Analysis: Microfilming ($150.00) / Paper Storage ($70.75) = RIO factor of
2.2. Microfilming will be over two times as expensive as paper storage.
Break even point of 132 months of paper storage.


Example 2:  Box of contract documentation.  Letter size printouts, good
condition, single sided.  2500 pages, 5 yrs of a 6 yr retention remain:
Filming: Prep/Filming expense (.01/image or $25.00)+ 2 original films
($15.00) = Processing (10.00) = $62.50
Paper Storage: Storage @$0.75/month x 60 months ($45.00) + 2 access charges
@ $10.00 ($20.00) + incidentals @ $1.25 index fee and $4.50 permanent
removal fee ($5.75) = $70.75
Analysis: Microfilming ($62.50) / Paper Storage ($70.75) = ROI factor of
0.88. Microfilming will reduce storage expense by an estimated 12% when
compared to paper storage.  Break even point of 52.8 months of storage.

As an added bonus, the second example provided a duplicate copy of the
documents for disaster recovery purposes.

Bill Roach, CRM
Enterprise EDMS Coordinator
State of North Dakota
ITD/Records Management
701-328-3589

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