Run a sourcing decision on TCO — freight, quality, switching, inventory, lifecycle — not unit price, so a price 'savings' doesn't raise total cost. Reach for this on any sourcing event.
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---
name: source-on-tco
description: "Run a sourcing decision on TCO — freight, quality, switching, inventory, lifecycle — not unit price, so a price 'savings' doesn't raise total cost. Reach for this on any sourcing event."
---
# Skill: Source on total cost of ownership
A price savings that raises TCO is a loss in disguise.
## Step 1 — Build the TCO model
Unit price plus freight, quality, switching, inventory, lifecycle (§3 #2).
## Step 2 — Compare bids on TCO
Rank suppliers on total cost, not headline price.
## Step 3 — Stress the assumptions
Test the non-price drivers that swing TCO.
## Step 4 — Recommend on total cost
Choose the lowest defensible TCO, not lowest price.
## Output
A TCO model, a TCO-ranked bid comparison, and a total-cost recommendation.
