Brainstorming Ideas: A Final Customer Purchasing from the Producer of the Product

Final customer buying from a product producer. Final or end-user customers incur four cost steps in connection with the product sold by a producer.

Maintain Steps: Maintain steps include all activities required to keep the product in working order. These steps include the costs the customer incurs to diagnose and correct product problems.

A. Knowledge

B.
Resources: Reduce resources required for the use of the product

1. Money – Reduce the money the customer uses with the product

   1. Reduce the level of payment for use of the product

   2. REDUCE THE CUSTOMER'S SPENDING ON PEOPLE, PURCHASES OR CAPITAL COSTS THE CUSTOMER USES WITH THE PRODUCT ITSELF

      1. People costs

         1. Substitute technology for people Examples>>

         2. Enable substitution of low-cost people for high-cost people Examples>>

         3. Other Examples>>

      2. Purchase costs used with the product itself

         1. Reduce need for third party assistance used with the product Examples>>

         2. Reduce purchases of items used with the product itself

            1. Reduce need for energy to use product Examples>>

            2. Modify product for more than one use Examples>>

            3. Correct errors in billing Examples>>

            4. Reduce wasted purchases Examples>>

            5. Other Examples>>

      3. Capital costs

         1. Reduce required inventory Examples>>

         2. Reduce fixed capital investment Examples>>

         3. Provide for inexpensive addition to capacity Examples>>

         4. Make product backward compatible with earlier versions Examples>>

      4. Reduce multiple costs Examples>>

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