Total Cost of Ownership
Avoid the inherent hazards of a narrow-minded bottom line focus
Sometimes focusing on hurdle rates, internal rate of return, and the short-sighted bottom line can lead to disaster. This is often the case when making “apples to oranges” comparisons. While engineered products can have a marginally higher price vs. off-theshelf parts and appear more attractive initially, it is vital to be aware of the longer-term hidden dangers of decision-making based on price alone. There are actually 29 cost factors to consider, including service quality, risk management, total landed cost, labor, training, and much more.

The importance of specifying products based upon quantitative critical-to-quality requirements cannot be over-stressed. Price alone cannot be the deciding factor; decision-makers should evaluate subject matter expertise, domestic and international standards, agency compliance, environmental regulations, and electrical, mechanical, ergonomic, aesthetic, harsh duty, and end-user requirements to name a few.

Third-party testing will add assurance to an “apples to apples” comparison. Make sure an independent Nationally Recognized Testing Laboratory (NRTL) certifies to the standards of IP68, CE Mark, UL, CSA, cUL, CE, MSHA, NFPA, ABS, USCG, IEEE, SAE and more as appropriate.

Employ additional selection criteria to avoid the pitfalls of expensive lessons from judging apples and oranges by the same criteria:

Cheap alternatives could create: 
• Safety Issues 
• Equipment Damage 
• Productivity Downtime 
• Loss of Revenue 
• Reputation Harm

Be sure to research: 
• Are the products counterfeit? 
• Are the copper bases identical (e.g., 
$4.14 vs. $3.82)? 
• Is the copper quality similar? 
• Are the combination of approvals 
possible?

Solution-oriented and application-driven, the cable and connector design, engineering, and manufacturing processes all become tailored for the individual project, giving customers a best quality, highly effective, long lasting system.

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Northwire, Inc
Northwire, Inc. is your responsive partner for developing and manufacturing customized technical cables, coil cords and complete interconnectivity solutions.