Ownership Value of the Shipping Package
Explore how purchase price changes affect total cost of ownership and the value created by AirCap Bubble Wrap
Instruction: Change the price of AirCap to evaluate changes in the total cost of ownership and AirCap ownership value, as measured by cost savings.
| Cost Component | AirCap Bubble Wrap | Corrugated Inserts | AirCap Savings |
|---|---|---|---|
| Price | $ | $0.80 | — |
| Labor | $0.13 | $0.83 | — |
| Freight | $2.40 | $2.60 | — |
| Carton | $0.55 | $0.55 | — |
| Ownership Cost | $4.13 | $4.78 | $0.65 |
Editable: Only the AirCap Bubble Wrap price can be adjusted (highlighted in yellow). Range: $0.00 - $3.00
Despite a higher unit price, AirCap Bubble Wrap lowers total ownership cost by reducing labor and freight, creating positive ownership value.
Learning Objective: This app demonstrates that price ≠ cost. Total cost of ownership includes purchase price plus operational costs (labor, freight, packaging).
Key Concept: Ownership value is created when a product with a higher purchase price reduces total ownership costs through operational efficiencies, resulting in positive savings.