4 ms·

The rule should be that the total cumulative cost of all the spare parts for an appliance must be lower than 80% of the price of the appliance brand new.

by Rygian 3y ago

sokoloff 3y ago
The price of all the spare parts to build an assembly will always be higher than the finished product, absent some crazy imbalance of very high labor and very low parts costs. (Arguably, a block of wood that you can whittle a product out of would sell for less than the finished product, but anything mass-produced will have spare parts priced at some small multiple of the finished good price.) Why? It's incredibly labor-intensive and logistics-intensive to track and offer one M10x1.25x12mm bolt or one main PCB for a $30 product. When I'm mass producing 5K units, I need 5K PCBs, 15K bolts, 5K upper case halves, 5K lower case halves, 5K displays, 5K buttons, etc. and I can arrange to have them delivered lineside in kits or whatever form I need and I'm pretty much going to use up everything I order in a very predictable way. When you need 1 display and 2 bolts, I have no guarantee that I can sell all the spare parts I made and stocked, and each little fiddly item I have to have someone inventory, put away, fetch, box, pack, and ship to you. It's going to cost more or you're not going to get it. (Today, you mostly can't get it.)
petsfed 3y ago
This only works if you can only get like half of the assembly in spares. Otherwise, all I have to do to undercut the literal manufacturer is find cheaper labor to assemble the final product. I like capping the cost of the replacement parts, but you have to factor in the additional labor cost of individually packaging, inventorying, storing, and shipping pieces that are going to go to final assembly either as a kit, or bulked in such a way that a spare-parts shipper cannot just part them out efficiently. So the total cost, before shipping and tax, of a stack of replacement parts to fully rebuild widget X should cost more than the fully assembled thing, but should probably cost less than 2 or 3 widget Xs.
refurb 3y ago
The cost of a given part could change over time.

The rule should be that the total cumulative cost of all the spare parts for an appliance must be lower than 80% of the price of the appliance brand new.

by Rygian 3y ago

The rule should be that the total cumulative cost of all the spare parts for an appliance must be lower than 80% of the price of the appliance brand new.

sokoloff 3y ago

The price of all the spare parts to build an assembly will always be higher than the finished product, absent some crazy imbalance of very high labor and very low parts costs. (Arguably, a block of wood that you can whittle a product out of would sell for less than the finished product, but anything mass-produced will have spare parts priced at some small multiple of the finished good price.) Why? It's incredibly labor-intensive and logistics-intensive to track and offer one M10x1.25x12mm bolt or one main PCB for a $30 product. When I'm mass producing 5K units, I need 5K PCBs, 15K bolts, 5K upper case halves, 5K lower case halves, 5K displays, 5K buttons, etc. and I can arrange to have them delivered lineside in kits or whatever form I need and I'm pretty much going to use up everything I order in a very predictable way. When you need 1 display and 2 bolts, I have no guarantee that I can sell all the spare parts I made and stocked, and each little fiddly item I have to have someone inventory, put away, fetch, box, pack, and ship to you. It's going to cost more or you're not going to get it. (Today, you mostly can't get it.)

petsfed 3y ago

This only works if you can only get like half of the assembly in spares. Otherwise, all I have to do to undercut the literal manufacturer is find cheaper labor to assemble the final product. I like capping the cost of the replacement parts, but you have to factor in the additional labor cost of individually packaging, inventorying, storing, and shipping pieces that are going to go to final assembly either as a kit, or bulked in such a way that a spare-parts shipper cannot just part them out efficiently. So the total cost, before shipping and tax, of a stack of replacement parts to fully rebuild widget X should cost more than the fully assembled thing, but should probably cost less than 2 or 3 widget Xs.

refurb 3y ago

The cost of a given part could change over time.