It's easy to view contract furniture as a line item, but it has a significant impact on the human experience within your public and administrative space.
TCO is an important tool for end-users that recognize that contract furnishings is an INVESTMENT, enabling a robust and complete assessment of benefits and costs.
TCO examines not only the initial procurement cost, but maintenance and replacement expenditures that are likely to affect the actual ownership costs.
A true LIFE CYCLE ANALYSIS should include the initial purchase price; furniture, labor and any ancillary costs to maintain the products over the life cycle period.
Initial purchase costs, mid-life modification expenses, plus the expected life cycle needs to be factored into the analysis to discover the true cash outlay.
Example: You decide to purchase inexpensive lounge seating deigned for light duty end-use.
But it ends up being used every day in the main reception area. It wears out and breaks sooner than anticipated and you have to replace it prematurely.
In doing so, you cancel out the initial savings for the inexpensive choice over a properly engineered solution designed to withstand heavy wear and tear.