Brainstorming Ideas: 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.

Acquire Steps: Acquire steps include all activities the customer completes preceding the use or the consumption of the product. These steps include the customer's efforts needed for evaluation and acquisition of the product.

A. Knowledge

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

1. Money – Reduce the money teh 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. Warnings and advice Examples>>

      2. People costs Examples>>

      3. Purchase costs used with the product itself

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

            1. Use less expensive form of distribution Examples>>

            2. Substitute technology for labor Examples>>

            3. Use internet service to gather and centralize information Examples>>

            4. Other 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. Add value to product to reduce net purchase cost Examples>>

            4. Enable product to use lower cost purchases Examples>>

            5. Use video conferencing Examples>>

            6. Reduce wasted purchases Examples>>

            7. Other Examples>>

      4. Capital costs

         1. Reduce required inventory Examples>>

         2. Provide surge capacity Examples>>

         3. Reduce fixed capital investment Examples>>

         4. Reduce space required for product Examples>>

         5. Provide for inexpensive addition to capacity Examples>>

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

         7. Break large purchase into smaller units Examples>>

      5. Other Examples>>

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