Your automation quote isn't the price. See the real number.
ROI makes a system look cheap. Total Cost of Ownership shows what you'll actually pay over its life. This guide names the nine costs that never make the proposal, and what each one runs on a $175,000 system.
- Nine ownership costs with real dollar ranges
- Why ROI's scope is too narrow to decide on
- The same machine bought two ways, side by side
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One number sells the system.
The other one owns it.
ROI is quick, familiar, and misleading. It weighs savings against the purchase price and stops there. Total Cost of Ownership takes the long view, which is the only view that matches how long you'll run the equipment.
Return on investment
A limited scope
(Current value of investment − cost of investment)
÷ cost of investment × 100
On a $175,000 system, ROI only counts the $175,000 purchase and basic labor savings.
- Ignores maintenance
- Ignores downtime
- Ignores upgrades
- Misses the ongoing reality of ownership
Total cost of ownership
A holistic, long-term view
Purchase + installation + maintenance + spare parts + software upgrades + downtime + training
The full picture of costs and benefits over time, which is what makes budgeting smarter and surprises rarer.
- Captures the real cost over the system's lifetime
- Prices the support you'll actually need
- Encourages smarter budgeting
- Reduces the surprises after you've signed
The costs that never
make the proposal.
Equipment and automation proposals usually list the hardware. Nine other costs arrive after you've signed. Every range below is what that cost runs on a $175,000 system.
Installation & commissioning
$5,250 to $17,500
Equipment and automation proposals often list only the hardware costs.
Change orders
$3,500 to $35,000
Buyers often end up paying much more than initially proposed, for items nobody accounted for.
Rigging
$3,500 to $11,500
Larger scale systems generally require rigging equipment and crews.
Critical spare parts kit
$5,250 to $8,750
The parts that prevent downtime, generally projected at 3 to 5% of the system cost.
Repair & replacement parts
$4,375 to $8,750 / year
Damaged components and traditional wear parts run 2.5 to 5% of the initial hardware cost annually.
Downtime risk
$10,000 to $50,000 per instance
Unplanned downtime and lost production, from equipment or support that isn’t there when you need it.
Programming & controls engineering
$3,500 to $12,500 per instance
Adapting to new production needs, and programming new products and SKUs.
Labor costs
$80,000 to $140,000 / year
Hiring and retaining technicians, plus training. That range is one dedicated engineer.
Change & failure risk
The cost of a new system
ROI assumes a static business. Many manufacturers invest heavily in systems that go obsolete or fail long before ROI is realized.
Ranges come straight from Formic's ROI vs. TCO guide, sized against its $175,000 example system. Your own figures vary with the system, the facility, and the integrator.
Same machine.
Very different bill.
The gap between ROI and TCO is the gap between two ways to put a robot on your floor. One bets on the ROI math. The other is built for the lowest Total Cost of Ownership.
Manufacturer A · buys automation equipment
The ROI bet
- $250K+ initial capital investment
- 100% depreciation from day one
- Pays for freight and delivery
- Handles integrator installation with one-time programming and training
- Covers ongoing team training at additional cost
- Schedules preventive maintenance at additional cost
- Waits for corrective maintenance on the integrator’s schedule, so downtime and cost pile up
- Schedules the integrator on-site and pays extra to program new SKUs
- Purchases new equipment when the production line changes
- Bears full responsibility for system output
ROI looks good on paper, then real costs spiral.
Manufacturer B · chooses Formic Full Service
The TCO play
- No upfront CapEx, freeing capital for other priorities
- Freight and delivery included
- Deployment and optimization handled by experts
- Ongoing team training included
- Scheduled preventive maintenance included
- Corrective maintenance included, with response within one hour
- Programming of new SKUs and recipes included
- Equipment adapts or swaps as needs change
- Formic bears full responsibility for system output
Predictable cost, sustained performance, the lowest TCO.
Buying takes months to years.
Full Service takes weeks.
Every month a line runs short-handed is a cost ROI never books. Deployment speed belongs in the comparison.
Months to years
Scoping, procurement, integrator scheduling, install, and programming, sequenced one after another.
Weeks to months
Formic scopes, tests, programs, and deploys the cell, then carries the service, parts, and contracted performance.
What one monthly rate
actually covers.
Full Service Automation makes automation simple, scalable, and risk-free at the lowest Total Cost of Ownership possible.
Automation systems
Scoped, tested, programmed, and deployed.
Service & support
Service, support, parts, and contracted performance.
Technology & software
Productivity tracking data and optimization.
Flexible & scalable
$0 CapEx, monthly contracts, and equipment you can swap.
Weighing a quote right now? Let's pressure-test it.
Bring the proposal you're holding. A Formic engineer will walk it against a Full Service quote, line by line, with no obligation.