Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) is an increasingly common purchasing approach among our customers. They now consider not only purchase costs (max. 15 to 20% of total costs ), but also all future costs that machine ownership entails, such as spare parts, maintenance and repair costs, tyres and wear parts, uptime, personnel, interest rate, depreciation, insurance, taxes… and fuel consumption.

Komatsu gives customers “bottom line tactics” to improve their productivity and efficiency by providing recommendations for individual machines or a whole fleet: estimates for ownership and operation , tailor-made financial solutions, operator and telematics-based insights and more. We offer all these propositions for customized value to all types of companies, no matter their size. Each company’s needs are unique, and our solutions are as well.

Total Cost of Ownership

Fleet Recommendations

Machine recommendations are the starting point of understanding and anticipating our customers' needs. A customer may be thinking that a 80-tonnes excavator is the best buy. But after deep field investigations, performed by Komatsu Application Engineers, our analysis of the business and of the type of work it performs may show that with that 80-tonnes machine the owner could experience a high ratio of idle time. And we would use this information to recommend a 70-tonnes excavator instead, a purchase more beneficial to the customer.

Total Cost of Ownership

Financial Solutions

Offering tailor-made financial solutions put Komatsu and our distributors in a unique position compared to an outside lender, to better understand customers’ opportunities and the cash flow challenges they face. We are driven by a customer-oriented approach: this includes getting out in the field and meeting directly with dealers and customers to understand how we can better serve their financial needs. That contact has helped us develop a lot of great programs that are different from the typical marketplace offer.

Total Cost of Ownership

Service Solutions

The second key pillar of TCO is to select the best service solutions according to application severity and to the hours the owner's fleet will work per year. Komatsu is committed to our customers' peace of mind, continuously developping services such as KomCare, REMAN, K24 and KEPO, and securing the highest machine availability with the lowest repair time and maintenance rates.

Total Cost of Ownership

Fuel & Energy Savings

In response to rising fuel costs (25 to 30% of the TCO) and CO2 emissions regulations, Komatsu offers unique and unrivalled technology for Hybrid excavators, key "eco" features such as "idle time auto shutdown" but also operator trainings in energy-efficient operation methods that propose effective utilization of energy. Based on KOMTRAX™ data we recommend energy-saving operations based on an analysis of actual equipment usage.