Issue link: https://iconnect007.uberflip.com/i/1504794
50 SMT007 MAGAZINE I AUGUST 2023 he even used ChatGPT to make sure he didn't miss any points. is time he was ready, even if that Ivory Tower Patty Coleman showed up. Meanwhile back at Ivy University, Profes- sor Patty was stressed. Her twin sons were now rising juniors in high school, so it was time for them to be preparing for college. Both were top students and stars on their high school golf team. All of Patty's many friends and relatives assumed the boys would go to Ivy U. However, there were two big prob- lems: First, it was possible they wouldn't be accepted to Ivy U; most people didn't know that the chil- dren of professors receive no preferential treatment r e g a r d i n g a d m i s s i o n . is past year, Ivy U only accepted 10% of appli- cants. Many valedictori- ans, class presidents, and captains of sports teams didn't make it. Another issue was the cost. With all expenses added in, Ivy U and other top private schools cost almost $100,000 a year. is is another issue most folks don't understand: Professors get no special finan- cial aid for their children. So, she and her hus- band Rob were facing the cost of $200,000 a year if their sons could even get into a top pri- vate school. Meanwhile, the best state schools were only $40,000 a year for tuition and other expenses. Patty was startled into the moment by a knock at her office door. It was Paul LaCroix. "Paul, come in," Patty said. "How was your meeting with Sue and Andy?" "ey were very helpful, Professor Cole- man," Paul replied. "We discussed that the term 'cost of ownership' was really not that useful." "Why is that?" Patty asked. "Well, Professor Coleman," Paul continued, "they explained it by discussing the lawn mow- ing business example. ey said it was some- thing that Dr. Maggie Benson told them that all the leaders in Benson Electronics had to understand." Patty chuckled. So, Maggie was now a PhD? In addition, Patty was pleased that the lawn mowing business example that she had taught Maggie and her peers received some traction. "Can you explain it to me?" Patty asked, as Paul responded, "I think so," then explained: "Let's assume that a man has a lawn mow- ing business. His busi- ness is quite good, as he may have to turn away customers. He consid- er s t wo prof e s s ional lawn mowers. Number one costs $6,000 with a $1,000 a year repair plan. It uses $3,000 a year in fuel. Number two costs $10,000 with a $1,500 a year repair plan and it uses $4,000 a year in fuel. Assume both mowers are amortized over five years and, to simplify things, we will forget about interest as it is a second order cost. "So, the cost of ownership for number one is $1,200 + $1,000 + $3,000 = $5,200. Whereas the cost of ownership of number two is $2,000 + $1,500 + $4,000 = $7,500. So clearly mower number one is better from a cost of ownership perspective, but…" Paul paused. Patty couldn't help herself. She was burst- ing with excitement because she saw that Paul understood what many electronics executives didn't. However, she held back. "But what?" she asked. "But it is meaningless," Paul responded. "Why?" Patty asked. "Because the man can make more money with mower number two since it can mow a lawn 30% faster," Paul responded. He has about $100,000 a year in business with mower num- This is another issue most folks don't understand: Professors get no special financial aid for their children.