How One Buyer Used Total Cost of Ownership to Beat a Low Price

Episode 47 of The Buyer's Side with Fexingo: Lucas and Luna dive into total cost of ownership (TCO) as a procurement superpower. They break down a real case where a buyer for a mid-tier automotive parts supplier rejected a 15% cheaper bid after calculating hidden costs — freight, rework, downtime, and warranty risk. The higher-priced supplier saved the company $2.3 million over three years. Lucas shares a simple TCO framework: purchase price plus logistics plus quality risk plus maintenance minus residual value. Luna pushes back on when TCO is overkill versus essential. No theory — just a practical tool you can use next time a supplier says 'I'm the lowest price.' Plus, a brief moment on why this show stays ad-free and how listener support keeps it that way. #TotalCostOfOwnership #Procurement #Sourcing #B2BPurchasing #TCO #CostAnalysis #SupplierSelection #HiddenCosts #AutomotiveParts #BuyersSide #LucasAndLuna #FexingoBusiness #BusinessPodcast #SupplyChain #Negotiation #CostSavings #QualityRisk #ProcurementStrategy Keep every episode free: buymeacoffee.com/fexingo