Skip to main content
Log in

Value pricing when you understand your customers: Total cost of ownership – Past, present and future

  • Futures
  • Published:
Journal of Revenue and Pricing Management Aims and scope

Abstract

At the heart of pricing and selling in the twenty-first century is the ability to price based on created value. In this context, total cost of ownership (TCO) plays an important role. Historically, both academics and practitioners have included exclusively elements related to cost reductions in TCO calculations. In this article, we point toward emerging practices of including not only cost elements, but also all differentiating elements that contribute to customer value in TCO calculations.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Accenture. (ed.) (2001) The total cost of ownership vision. In: Industrial Equipment Insight, www.accenture.com.

  • Strategic Account Management Association & International Association of Commercial and Contract Management. (2007) 2007 strategic customer–supplier relationships collaboration study. Graph 6.

  • West, R. and Daigle, S.L. (2004) Total Cost of Ownership: A Strategic Tool for ERP Planning and Implementation. Philadelphia, PA: Center for Applied Research.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Todd Snelgrove.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Snelgrove, T. Value pricing when you understand your customers: Total cost of ownership – Past, present and future. J Revenue Pricing Manag 11, 76–80 (2012). https://doi.org/10.1057/rpm.2011.35

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/rpm.2011.35

Keywords

Navigation