Dispose (Customer) Cost
In the customer life-cycle cost of a product, used to develop product and service innovations, the costs a Final Customer incurs to disassemble, remove or otherwise get rid of the product after the customer has finished using it. Dispose costs may be positive if the product has significant resale value.
(See also Acquire Cost, Maintain Cost
Dispose Cost Examples
Newport Beach Marriott offers in-room video check-out, a free service.
(SIC 7011-Year 1987)
Explanation: This benefit reduces the customer's Cost to Dispose of the product.
There is a new way of disposing of automobile tires: Oxford Energy has licensed a furnace design that consumes tires whole — rubber, steel belts and all. It will sell the energy to PG&E. Tires will cost only about 13 percent of the cost of fuel for an oil-fired generator.
(SIC 3011-Year 1987)
Explanation: A tire company that allies itself with Oxford Energy would create an option that would reduce the consumer's Cost of Disposing of the tires.
Kodak collects its used Stretch 35 cameras by mail, then melts and recycles them.
(SIC 3861-Year 1990)
Explanation: This Kodak effort reduces the customer's Cost to Dispose of the product appropriately.
Interpro is marketing a lotion that forms a barrier that poison oak and ivy can't penetrate. Trials showed it reduced incidents by 80 percent. The lotion won't wash off, but wears off in 24 hours.
(SIC 2834-Year 1988)
Explanation: Interpro designed the product so that it would wear off naturally in 24 hours. This reduced the customer's Cost of Disposing of the product.
McDonald's has eliminated its styrofoam containers.
(SIC 5812-Year 1992)
Explanation: By eliminating styrofoam containers, McDonald's reduced the amount of waste sent to landfills. This particular type of waste had a long life within the landfill. By eliminating these types of containers, McDonald's reduced the Cost of its consumer's appropriate Disposal of the product.
Examples of Innovation for Customer Cost Reduction: Dispose Steps
Example 1: Avis and Hertz use hand-held computers to generate receipts and hasten car returns at busy locations.
(Year 1990-SIC 7514)
Explanation: This innovation reduces the cost the customer incurs to remove the product from service.
Example 2: Sanyo and Gates will accept used rechargeables for recycling, if consumers send them in.
(Year 1991-SIC 3692)
Explanation: This innovation creates a disposal option for the consumer.
Example 3: 3M is bringing out a plastic desk organizer that is designed for recycling. It snaps together so it can be dissembled by snapping it apart.
(Year 1991-SIC 2670)
Explanation: This innovation reduces the customer's cost by enabling the customer to deliver a smaller package for recycling.