Week 7 Discussion COLLAPSE Please respond to the following: Describe three key concepts you consider most important in the total cost of ownership. Describe how price discounting would influence the...

1.
TCO or total cost of ownership is a study that puts a value on a capital purchase's complete life-cycle. This value is comprised of all the phases of ownership that are, operation, softer costs related to change management and acquisition (Visani, 2016). The three main components or concept includes in the analysis and calculation of TCO or Total Cost of Ownership involves :-
· Acquisition costs
Costs for physical hardware or acquisition consists of the cost of property prior to taxes and equipments however, after discounts, commissions, closing costs and purchasing incentives (Lahti, 2018). At times, peripheral equipments that require one time investment or necessary upgrades for utilisation installation of the assest, are also included in the acquisition costs.
· Operating costs
Costs of operation is made up of services or subscriptions that are necessary for a business to make use of an item for the business. This consists of costs of utility, labour that is directly operated and costs of initial training for employees to use the new equipments and softwares.
· Personnel costs
Costs for personnel overhead might be the costs required for staffing that is administrative, to have support personnel for the equipment, operators and facility housing for the equipment. This cost can also include running troubleshooting and training labours to fulfill maintenance purposes.
2.
Price discounting might not always seem like a very profitable option for the business, but it is capable of solving problems in the business. Consumers are more attracted towards a product with a discounted price. Purchasing discounted services or products makes consumers feel like they are saving money while making the purchase. Consumers are more likely to buy a product with a discount price rather than a similar product without a discounted price which costs the same as the discounted product (Cai, 2016)....