(tco 3) which one below is not a pricing strategy listed in your course lesson?

by Sandy Oberbrunner 4 min read

How does total cost of ownership/TCO compare to price?

Your browser cannot play this video. How Does Total Cost of Ownership/TCO Compare to Price? Total cost of ownership/TCO highlights the difference between purchase price and long-term cost. This analysis came into the spotlight starting in the mid-eighties due to the expenses in supporting hardware and software IT acquisitions.

What are the components of TCO calculations?

There are three key components to TCO calculations: Let’s look at each of these in turn. Acquisition/Physical Hardware costs include the cost of equipment or property before taxes, but after commissions, discounts, purchasing incentives, and closing costs.

What are the components of total cost of goods sold?

There are three key components to TCO calculations: Acquisition/Physical Hardware Costs. Operating Costs. Personnel Costs.

What is total cost of ownership in purchasing and procurement?

Purchasing & Procurement. Total cost of ownership (TCO) is an analysis that places a single value on the complete lifecycle of a capital purchase. This value includes every phase of ownership: acquisition, operation, and the softer costs of change management that flows down from acquisition such as documentation and training.

Importance of Understanding Total Cost of Ownership (TCO)!

Watch the Video Below for a Quick Understanding of How TCO Affects Purchasing Decision, Before Continuing Below.

What is Included in a TCO Analysis?

Acquisition/Physical Hardware costs include the cost of equipment or property before taxes, but after commisions, discounts, purchasing incentives and closing costs. Sometimes this will include one-time peripheral equipment or upgrades necessary to installation or utilization of the asset.