IT Equipment Average Cost: 2025 Updated Guide

Why Understanding IT Equipment Costs is Crucial

The upfront net cost of IT equipment is much more than what it looks like. The silent cost of the transportation and installation of IT equipment is piled up. There are other costs included that must be on your radar to avoid surplus spending, like:

Logistics

You may be required to pay tax or importation fees. Residents of Belarus, Moldova, Turkey, and the U.K. for example, have to pay 20% VAT for IT equipment. These extra charges can delay the shipment of equipment and affect organizational processes. 

Installations

To install your new IT equipment, you will need the services of a professional. Missing or damaged parts can increase the cost. Returning or repairing damaged items can affect product launches and deadlines.

Ownership

The cost of owning IT equipment can outweigh the purchase cost. In the long run, paying for occasional repairs and maintenance will outweigh the initial price of the equipment.

You can ease this burden by using a service that procures, transports, installs, maintains, and retrieves your IT equipment. With Workwize, you pay a lump sum to have your equipment delivered and maintained.

Categories of IT Equipment Costs

If your business is investing money in IT equipment without any backlog of how much each asset cost you, that’s catastrophic! It's helpful to categorize equipment costs for better understanding. Each category has its own average costs, which impacts a company’s budget. Let’s check what to expect for pricing and performance from each category. 

Laptops and Desktops

Laptops and desktops are must-haves for any workplace, but their prices vary, especially when you factor in high-end graphics cards. Check out the table below to see the differences.

It’s important to note the differences between enterprise-grade and consumer-grade devices. Enterprise models are more durable; hence, they have long-term use.

In summary, enterprise models justify their price tags with better support, warranty and durability. They are more ideal for long-term use.

Peripherals and Accessories

IT peripherals like monitors, keyboards, docking stations, and headphones add to IT costs but are essential investments. Quality peripherals enhance comfort and productivity, making them worth the expense. Here’s a breakdown to help plan your budget.

Networking Equipment

Networking equipment like routers, switches, and modems keeps everything connected, but the cost depends on your network's needs. 

A basic router might be as cheap as $50, but enterprise-grade switches cost thousands. And that’s just the starting point. There’s maintenance, updates, warranties, and ensuring it all works with future technology.

As your business grows, so do your networking needs, which means more upgrades and costs. It’s also worth asking yourself—does it make sense to manage everything in-house, or should you look into managed services?

Software and Licensing Costs

Software and licensing costs can sneak up on you, especially when you factor in operating systems, antivirus software, and productivity tools. It all depends on the licensing model you choose. 

With subscriptions, you’re paying a fixed cost every month or year. Perpetual licenses, on the other hand, are a one-time expense. 

At first glance, subscriptions might seem easier on the wallet, but over time, they can cost more than a perpetual license. It’s all about finding the right balance for what your business needs.

Servers and Cloud Infrastructure

When it comes to servers, you’ve got two choices: on-premises or cloud-based. 

On-premises servers require a significant upfront investment—depending on the specs, it could be anywhere from $1,000 to over $10,000.

Cloud solutions are different. They run on a pay-as-you-go model, which makes them super flexible, but monthly costs can vary. Either way, it’s important to consider the bigger picture.

No matter which option you choose, you can't overlook maintenance, scaling, and keeping everything running smoothly.

Maintenance and Support Costs

Keeping IT equipment running smoothly involves more than repairs and support—it also involves the work behind the scenes, such as preparing and shipping devices.

Think about it: laptops need to be configured, secured, and shipped out to employees, and all of that takes time and money. 

Depending on the scale, those costs can really add up, especially if you’re managing a remote or hybrid team. 

So, you need to account for more than just maintenance or warranties—you need to account for the whole process from setup to delivery. Finding efficient ways to streamline this can save time and money in the long run.

Hidden IT Equipment Costs

Hidden costs often go unnoticed until they manifest as unexpected expenses. This indirect cost can hamper the operational efficiency and overall profitability of any organization. They include: 

Depreciation and replacement cycles

IT equipment is a depreciating asset. The longer a device sits idle, the less its market value. This can lead to substantial financial implications for businesses. To curtail this impact, companies use straight-line or double declining balance. This way, they can allocate the cost of an asset over its useful life. Read further to understand the methods to calculate depreciation.

Pro Tip: Reselling IT equipment within the first 2–4 years of its lifecycle is best. After that, technological obsolescence and wear start to take a toll. Offload assets early to maximize your return on investment (ROI).

Costs associated with asset retrieval and offboarding

Usually, on the retrieving side, visibility on offboarding status is limited. On that note, retrieving IT equipment from former employees can incur labor and data recovery costs and shipping fees (if there’s no place to return assets locally). The cost can surge, when the offboarding process isn’t taken care of efficiently. Workwize (humble brag: That’s us!) automatic retrieval of equipment enables a zero-touch retrieval process from communication with the employee to packaging, to logistics, to tracking offboarding status–all in one place. Here’s a retrieval checklist for you, so that no unnecessary cost falls through the cracks.

Downtime due to equipment failures

Do you know? Downtime can take serious bites like customer churn, loss in productivity, employee turnover, and, in the worst case, damage customer trust and loyalty. It’s kind of a slow death that you wouldn’t notice, and it starts becoming a weighty cost.According to Forbes, large organizations have an average unplanned downtime cost of $9,000 per minute. Thus, we recommend that businesses regularly maintain and monitor their IT equipment. You can always come to Workwize for self-service IT support, repairs, and maintenance.

Environmental disposal costs for old hardware

IT Hardware disposal is a costly and time-consuming process ( that nobody talks about). Your IT team needs to go through multiple processes like secured erasure, data wiping, adhering to environmental regulations, decommissioning, and whatnot. The task could even be more hectic if it includes gaming computers, especially entry-level gaming PCs. At Workwize, we suggest that when the cost of maintenance gets higher than the cost of replacement, organizations should consider proper disposal of outdated devices. Instead of holding on to the equipment, you can take out the essential component and dispose of the non essential components. This way, you can preserve critical components and ensure proper disposal. 

Responsibly disposing of IT assets, organizations can save money and contribute to sustainability efforts.

Factors Influencing IT Equipment Costs

Have you ever wondered why IT equipment costs so much? You are not alone. Although manufacturers generally have a fixed price for their equipment, other factors can influence the actual rate. These factors include:

✅Geographic price differences: Prices vary per region because of local demand, shipping costs, federal regulations, and taxes. Organizations must consider these geographic nuances in budgeting for IT equipment.

✅Bulk purchasing vs. individual procurement: Organizations can save more on bulk purchasing than individual procurement. Suppliers are typically willing to offer discounts for larger orders. Such discounts can significantly reduce the per-unit cost of IT equipment.

✅Remote work equipment vs. office-based infrastructure: Due to the shift to remote work, organizations now face the increased cost of equipping employees. This cost covers laptops, desktops, monitors, and ergonomic accessories. In contrast, traditional office-based infrastructure costs include networking equipment and office spaces.

✅Vendor and supplier relationships: Good relationships with suppliers can lead to better pricing, favorable terms like reduced actual rates, and priority service. Organizations that cultivate long-term partnerships with reliable vendors can negotiate costs and secure the best deals. Having a trusted supplier also enhances the procurement process, ensuring that quality IT equipment is delivered on time.

Benchmarking IT Equipment Costs Across Industries

Benchmarking costs across different industries is like looking through a map. It helps you see where you and your competitors are on the business map. With this, you can compare your business’ performance against your competitors. These benchmarks help organizations identify areas for improvement.

Benchmarking IT equipment shows the differences in the IT spending of minor to medium-sized businesses (SMBs) and larger enterprises. According to Statista, SMBs with about 50 million in revenue budget about 4% of their revenue on IT equipment costs, while larger enterprises with over 1 billion in revenue have a 2% investment rate for IT costs. Benchmarking can help organizations gauge their IT costs and make the necessary adjustments.

Cost Optimization Strategies for IT Equipment

Organizations seek the best products at the lowest possible price, which is where cost optimization comes into play. With the right cost optimization strategy, businesses can get premium IT equipment that suits their budget. Let’s explore some effective cost-optimization strategies.

Bulk purchasing and vendor negotiations.

Buying in larger quantities, organizations can negotiate better pricing with suppliers, lowering the per-unit cost. Effective vendor negotiations can further enhance these savings through discounts and bundled services.

Leveraging IT asset management tools like Workwize

IT asset management (ITAM) tools like Workwize give organizations visibility into their IT assets. This enables them to track usage, performance, and lifecycle stages. ITAM tools can also aid organizations in planning for future needs and accurate budgeting.

Exploring PCaaS (PC-as-a-Service) and DaaS (Device-as-a-Service) models.

These models are flexible alternatives to traditional purchasing methods. As subscription-based services they allow businesses to acquire IT equipment without the upfront costs of outright hardware purchases. Instead, organizations pay a monthly fee for hardware component, software, maintenance, and support. 

Refurbished vs new equipment

Refurbished devices are often available at a fraction of the purchase price of new ones. Many reputable vendors offer refurbished products that have been tested and certified. The products are often sold to cover the repair costs. Thus, organizations get quality equipment for cheaper prices.

Future Trends in IT Equipment Costs

The purchase price of IT equipment evolves with trends. From global economic factors to shifts in consumer preferences, and advancements in technology, several trends influence the cost of IT equipment. Let’s explore the future implications of some of these trends:

Rising costs due to global supply chain disruptions

The COVID-19 pandemic exposed vulnerabilities in supply chains. Delays and shortages of components like semiconductors have resulted in increased prices of IT equipment. Despite the increased costs of raw materials and logistics, manufacturers and service providers struggle to meet increasing demand. Thus, companies need to diversify their supplier base and invest in local suppliers.

Increasing adoption of sustainable and energy-efficient devices

As environmental concerns become more prominent, organizations seek to minimize their carbon footprint and reduce energy consumption. Companies now recognize sustainability as a competitive advantage. Hence, manufacturers will produce more energy-efficient IT equipment. This will influence the pricing structures of IT equipment.

Growth of subscription-based hardware services

PCaaS and DaaS are transforming how organizations acquire and manage IT equipment. This shift will lead to more efficient budgeting and resource allocation, make technology more accessible, and stabilize expenses over time.

Stay On Top Of Your IT Equipment Cost With Workwize

If your organization is stuck in the chaos of planning an IT equipment budget but always ends up overspending or underspending. An IT asset management software can help with an all-in-one solution for managing IT hardware components.

A software that can track your expenses (via a centralized dashboard), streamline asset tracking and procurement, and help you plan sustainable disposal?

Look no further! Workwize is one service provider that wears many hats. This service provider can optimize the lifecycle of your IT equipment. Break free from outdated processes and adopt modern practices to calculate average IT cost.

Improve your operational efficiency today with Workwize.