Total Cost of Ownership (TCO) is the overall costs associated with ownership of a product. When making a purchasing decision, buyers should look not just at an item's short-term price (purchase price), but also at its long-term price (total cost of ownership). The total cost of ownership comes from first, identifying all the different costs that contribute to the total, then analyzing and combining the costs. The item with the lower TCO will be the better value in the long run.
Let's explore some different factors you may want to consider when purchasing a vacuum contactor.
- Initial Price
The initial price is what the contactor costs at time of purchasing. A product’s initial price will be higher or lower than comparable products, greatly impacting the TCO.
- 5-Year View
Evaluating the impact that the vacuum contactor will make in your application over the next five years will provide a good sense of the value that should be placed on this product.
Maintenance for the vacuum contactor is very minimal. Considering life span, the need for personnel and a preventative maintenance process, repairs, and any extra materials will give you an idea of what it will take to maintain the vacuum contactor.
- Operating Expense
The operating costs of a vacuum contactor should be based on coil voltage used at KWh prices.
- Downtime Costs
Regular maintenance and repairs requires regular downtime, resulting in less production and profit. This is an important factor to consider when comparing vacuum contactors. If the product requires an excessive amount of downtime, then the TCO may be higher and the value lower.
- Maintenance and Support Costs
Costs that some may not initially take into account are those associated with maintenance and support of a vacuum contactor. As mentioned above, different aspects of maintaining a contactor can bring on extra costs when considering the overall value.
- Company Brand Recognition
Lastly, consider the brand that manufactures the vacuum contactors that you are comparing. Whether the brand is recognized in a positive or negative light can impact the overall value of the product itself.