Price Is the Most Visible Cost of Any Purchase

Question

Examlex · Accepted Answer

The Answer is The seven types of non-price life cycle costs are:
(1)acquisition costs
(2)financing costs
(3)holding costs
(4)installation costs
(5)usage costs
(6)repair/maintenance costs
(7)disposal costs/value
A company will tend to remain focused on price until it begins to understand how customers acquire,finance,use,maintain and dispose or re-sell its product when compared to competing products.As you look deeper into the costs of ownership,you will likely find opportunities for good customer savings and value creation.For example,in a highly price-competitive market,a company can work at lowering the non-price life cycle costs compared to competitors.Thus,a business may be able to charge a higher price and still deliver a greater economic value to customers.

Price Is the Most Visible Cost of Any Purchase

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