Entries tagged as total cost of ownership

Small businesses are struggling with the challenge of how to choose the right suppliers. Many business owners are unaware of what to look for in a supplier beyond just getting the lowest price. Here are 5 tips for choosing the right supplier

I am a fan of the total cost of ownership (TCO) model. Simply put, it is an assessment of all costs, both direct and indirect, that are involved with an item over its life. While many of the cost elements are estimated, you can build a pretty accurate forward looking cost model based on experience or current cost forecasts. The key is to be aware of all associated costs of a purchase.