It has been well documented that sometimes it’s better to spend a little bit more on an item than the cheaper option, just because it will last longer. When CF and I are thinking about a purchase, we’ll look at the cost per year of each option, based on the estimated lifespan of the item we’re considering. For example, about two years ago we were in the market for a new chefs knife. We considered a cheap option ($5), a mid range version ($25) and briefly wondered whether a high end knife (~$100) would be worth the investment. For each knife, we assigned an estimated lifespan. For the cheap option, we estimated 2 years, the mid range 10 years and 25 for the high end. After doing the math, we decided that the mid range option at $2.50 per year was the best deal. With an identical cost per year as the cheaper option, you might as well get the better quality item! It surprised me that even if you had the high end knife for 25 years, it’s still almost twice the cost per year as the mid range knife.
This concept has been in my mind lately because I’ve been wondering how much longer our TV is going to last. CF bought the TV waaaay back when we had just started dating (or possibly before, but I seem to recall being enlisted to help transport the TV home!). That puts it’s age at around 7 -8 years old. It’s an LCD from the time when LCD’s were pretty new, and quite expensive. CF paid approximately $1300 for hers, putting the cost per year at about $175. Given how the prices have come down, I’d be looking for something with a significantly lower cost per year this time around. But, here’s hoping it holds out for another couple of years!
This month, we’re teaming up with Quote Me a Price, who provide information on selling an annuity, to give you the chance to win a Samsung 50 inch 1080p LED TV! That would be a cost per year of $0, for those of you keeping track at home 🙂 The contest runs from May 1st – 31st and is open worldwide with up to $50 for shipping. Good luck!
a Rafflecopter giveaway
