The True Cost of Ownership Worksheet is a combination of a valuation equation and an ownership worksheet that are often used in business to assist sales professionals in determining the fair market value of an asset. The owner must decide whether to use the owner’s worksheet and if so, how to use it. The owner must also decide whether to use the equation or the owner worksheet.
While the owner worksheet answers a few questions about the fair market value of the assets, it is up to the salesperson to determine whether it answers the customer’s specific questions about the asset. In this way, the owner worksheet becomes the owner’s own tool in determining the fair market value of the asset.
The True Cost of Ownership Worksheet answers the question, “What is the fair market value of the asset?” By using a formula based on price per year of depreciation. The formula uses changes in price per year of depreciation as the input for its valuation equation. The owner worksheet tells the owner what the fair market value of the asset is based on a fair price per year of depreciation.
The True Cost of Ownership Worksheet answers the question, “How much am I paying for the right to the asset?” By using the owner worksheet valuation equation. When the owner worksheet and the owner valuation equation are combined, the owner determines the fair market value of the asset.
The True Cost of Ownership Worksheet answers the question, “What will the fair market value be in five years?” By using the owner worksheet valuation equation. Again, when the owner worksheet and the owner valuation equation are combined, the owner determines the fair market value by multiplying the fair price per year of depreciation for each year by the total number of years left in the term of the asset.
The True Cost of Ownership Worksheet answers the question, “What is the true fair market value of the asset?” By using the owner worksheet valuation equation. When the owner worksheet and the owner valuation equation are combined, the owner determines the fair market value by multiplying the fair price per year of depreciation for each year by the total number of years left in the term of the asset.
The True Cost of Ownership Worksheet answers the question, “Is this an investment?” By using the owner worksheet valuation equation. When the owner worksheet and the owner valuation equation are combined, the owner determines the fair market value of the asset by using the owner valuation equation.
The True Cost of Ownership Worksheet answers the question, “Are these worth the price?” By using the owner worksheet valuation equation.
