[Negotiation] How do you think about total cost of ownership instead of just unit price?

Instruction: Compare undiscounted three-year ownership costs using the supplied facts. Identify a useful negotiation lever and any remaining uncertainty.

Context:

Fictional equipment purchase: A costs $18,000 plus $1,000 installation and $4,000 service at the end of each of three years. B costs $23,000, includes installation and costs $2,000 service at the end of each of three years. Both have the same capacity and approved specification. Assume no residual value, taxes, financing, downtime or energy difference; use undiscounted totals. The category owner approves purchase and contract terms.

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I would bring the lifecycle comparison to the owner and negotiate the service scope and price...

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