Future View: Evolving the Measurement of Best Customer Value from Using a Total Cost of Ownership to Total Profit Added Methodology

  • Todd Snelgrove
  • Journal of Creating Value, September 2017, SAGE Publications
  • DOI: 10.1177/2394964317726450

Evolving a best value decision from a Total Cost of Ownership to Total Profit Added™ Methodology

What is it about?

How does Procurement know they are buying and realizing the best value when making purchasing decisions? As a sales and marketing organization, how do you know what true value your offering brings to customers? Using a Total Cost of Ownership view looking at the lifecycle costs associated with a decision is a good start. However, so much more value can and should be created above just "Cost" reductions.

Why is it important?

This is important because it allows a holistic methodology to objectively choose, buy, price, sell, market and realize from both a buyer and sellers perspective the solution that drives the most profit for the buying organization.


Todd Snelgrove

This new holistic view that makes sure that buyers and sellers choose on best value called Total Profit Added is the next step in this evolution.

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