Describing the Customer’s Costs


TYPICAL COSTS FOR FINAL CUSTOMERS: DISPOSE STEPS

The Final customer is either an end-user or an installer. Consumers make up the bulk of the end-users, though organizations such as companies, government entities, and other organizations, can also be end-users. The installer type of Final customer includes both contractors, who serve the ultimate end-user, as well as original equipment manufacturers, who buy products to install in their own final product.

The Final customers take four steps in connection with the product:
Acquire,
Use,
Maintain and
Dispose. Each of these four steps cause the Final customer to incur additional steps and costs in connection with the product. Some of these additional Dispose costs include:

Dispose Steps: Dispose steps include all activities required to eliminate the product from the customer's premises. These steps include the costs for removal and final disposition of the product.

  1. Remove from service: The customer must remove the product from its place of use of storage.

  2. Determine disposal options: The customer must determine the alternatives he has to dispose of the product and choose among them.

  3. Remove from storage to final placement: The customer must remove the product from storage or service to its final placement.

  4. Pay for disposal (or receive credit for recycled product): The customer must pay for the disposal of the product or receive credit for the value of the product when it is recycled.

Back to Describing Customer Costs