What Does That Really Cost?

If I buy product "A" for $50 is that cheaper than buying Product "B" for $60? Well, that depends.

The concept of Total Cost of Ownership, usually abbreviated as TCO, helps us evaluate the true cost of the purchases we make for our companies, and for ourselves.

Product "A" needs to be serviced every year at a cost of $2 each time. It has no resale value, but can be sold for scrap at the end of its 12 year life span for $2. Product "B" costs $4 to service, but only needs to be serviced every 5 years. It lasts for 15 years, but has no re-sale value. So which is cheaper?

Figure it out and then share your answers with us. Use this form to let us know which product you would purchase and why.

Or you can skip head to my answer here.