What is Total Cost of Ownership (TCO) in Retail? Explained

Total Cost of Ownership (TCO) encompasses the complete cost associated with owning and managing a product or asset throughout its lifecycle. This extends beyond the initial purchase price and includes expenses such as maintenance, operating costs, and potential future upgrades. TCO analysis helps retailers make informed decisions by considering the long-term financial implications of a purchase. By evaluating all associated costs, including those incurred after the initial acquisition, retailers can optimize resource allocation, enhance budgeting accuracy, and make strategic choices that contribute to overall operational efficiency and profitability.