NEWS RELEASE                                                                                    July 2021

Management Strategy Based on Niche LTCO Analyses

Digital communications and content marketing are providing cost of ownership factors which will allow purchasers to make better choices.

Nearly $300 billion/yr of flow and treat purchases are based more on anticipated product performance than on price and delivery. This decision on Lowest Total Cost of Ownership (LTCO) is based on the following factors and examples.

  • Financial: interest rate, evaluation life
  • Common: energy, maintenance, product value
  • Shared product features: some competitors also have these features
  • Unique product features: only offered by one supplier

Too many products are purchased because they are what is being used rather than what might be better. In order to gain market share suppliers need a Lowest Total Cost of Ownership Validation (LTCOV) which includes substantiation of all factors.

Shared product features need to be incorporated. Dry scrubbers reduce water usage compared to wet scrubbers. Diaphragm valves have hygienic advantages over other types.

It is possible to have the best performance even though there are no unique features. If the product incorporates more of the shared cost reducing features than any competitor, it can claim LTCO.

 Product based associations are well equipped to communicate shared product features. Other associations such as those built around the environment or safety can contribute common factor evidence. The media can help communicate this knowledge.

The Mcilvaine company is working with suppliers to help them quantify the unique product benefits in each niche. With many industries, many processes, and many geographies it is critical in each niche to

  • Determine the present and future size of each niche
  • Determine present competitor market shares
  • Determine future competitor market shares based on LTCO
  • Rank opportunities relative to profits which can generated

Use of niche LTCO Analyses to Determine Strategy

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The program is explained at http://home.mcilvainecompany.com/index.php/30-general/1658-holistic-content-marketing-program

A number of multi-client flow and treat market reports are available and described at www.mcilvainecompany.com  Click on markets at the top.

Bob McIlvaine can answer your questions at This email address is being protected from spambots. You need JavaScript enabled to view it.