Describing the Customer’s Costs


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:
Maintain and
Dispose. E Each of these four steps cause the Final customer to incur additional steps and costs in connection with the product. Some of these additional Maintain costs include:

C. 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.

  1. Set maintenance policies: The customer must establish policies for maintaining the product in its appropriate state.

  2. Remove product from service/storage: The customer must remove the product from its place of use or from storage in order to repair it.

  3. Diagnose problem: The customer must determine the nature of the repairs necessary.

  4. Establish repair procedures: The customer must establish procedures to be used in the repair process.

  5. Determine value of repair: The customer determine the value of the product once it is repaired.

  6. Determine cost of repair: The customer must determine the cost of repairing the product appropriately.

  7. Gather supplies and equipment necessary for repair: The customer must assemble the supplies, equipment and work force necessary for the repair.

  8. Repair problem: The customer must repair the product.

  9. Pay for repair: The customer must pay for the repair procedures.

  10. Return to storage/service: The customer must return the product to its physical place of use or storage.

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