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The idea that manufacturers would raise prices simply because a product lives longer flies in the face of Econ 100. Any time you raise prices you increase the o

The idea that manufacturers would raise prices simply because a product lives longer flies in the face of Econ 100. Any time you raise prices you increase the opportunity for competition. Any improvement without raising prices gives you a competetive advantage. It may be that the longer life comes at some cost to the manufacturer. That can safely be added to the price because any competitor would also incur similar costs to add similar value. However, if the additional cost adversely affects the price per unit of life it could very well hurt the manufacturer. A $10 wrench that lasts 10 years could be perceived as a better choice than a $15 wrench that lasts 12 years. And of course it would be a better purchase than a $12 wrench that lasts 15 years for somebody who loses their wrenches about every 8 years. So single-factor Econ 100 homework might be over-simplified, but the principle should not be ignored.

bee_rider 4y ago
I would expect that, at least for companies that aren’t woefully poorly run and are in fairly competitive markets, creating more durable/repairable good will result in higher costs. I mean, if they could make a better device for less or the same amount of money, it seems they are just giving up a competitive advantage for no reason, and somebody would eat their lunch, right? But of course the consumer gets the benefit of a better device. It seems really industry specific how the pros and cons would balance out. If anyone is making predictions for how it would work out for the whole market, I’m pretty suspicious that they are overstating their level of confidence.
- snapplebobapple 4y ago
  It is not industry specific though. One one side is benefit to consumers and on the other is a bunch of industry spun bs muddying the waters and tricking people into thinking there is a downside for consumers because the manufacturer's want to avoid the downside to themselves. It really is that simple.

bee_rider 4y ago

I would expect that, at least for companies that aren’t woefully poorly run and are in fairly competitive markets, creating more durable/repairable good will result in higher costs. I mean, if they could make a better device for less or the same amount of money, it seems they are just giving up a competitive advantage for no reason, and somebody would eat their lunch, right? But of course the consumer gets the benefit of a better device. It seems really industry specific how the pros and cons would balance out. If anyone is making predictions for how it would work out for the whole market, I’m pretty suspicious that they are overstating their level of confidence.

snapplebobapple 4y ago
It is not industry specific though. One one side is benefit to consumers and on the other is a bunch of industry spun bs muddying the waters and tricking people into thinking there is a downside for consumers because the manufacturer's want to avoid the downside to themselves. It really is that simple.