The Five Stages of a Product’s Life: Saving You Money on Replacing Expensive Household Items
Author: Nick
Category: Money
Topics: budget, deals, technology
The end is near for my five-year-old laptop computer. I built this thing myself from parts just before my last semester of college. I’ve replaced just about every part since then at least once except for the casing and screen. Unfortunately I’ve just about reached the end of the line for what upgrades and repairs can do to keep it going. The keyboard is missing several key caps (I pulled off one of the “Ctrl” keys and put it where the “E” was), the power supply jack is wiggly, the memory capacity has been maxed out at 2GB, and the hard-to-reach internal Wi-Fi died long ago. Still, the laptop is capable of performing as well as a laptop you’d pay $800 for today, but it’s only a matter of time until a major component fails or more of the casing starts to fall apart and I’ll replace it altogether. My laptop is at Stage 3: Wait and See.
For a few years now, I’ve used a system of assigning ratings to expensive items I own in order to track where they are in their useful lifespan and make budgetary plans for items I may soon need to replace. For instance, a brand new item at the peak of its performance is in Stage 1: Good As New while that same item that just broke in half and no longer works probably belongs in Stage 5: End of Life (though it might only be in Stage 4: Obsolescence).
What exactly do these ratings mean, and how can they save you money? Let’s look at each rating and consider the circumstances under which you would use each of them.
Stage 1: Good As New
If you just went to the store and bought a product off the shelf, it should fall into this category. And if you properly use and maintain that item, it should stay in this category for a long time to come. Items that are Good As New are in flawless or nearly flawless condition and are as good as or even better than similar items currently on the market. Every feature of the item still performs as well as the day is was built. Good As New is obviously the best category of products to own, but it certainly isn’t the cheapest.
Product Examples:
- A new car fresh off the dealer’s lot.
- A refrigerator you just bought new at the appliance store.
- A refurbished DVD player you bought for $100 less than a brand new model.
- Your grandmother’s set of cookware, painstakingly maintained and better than anything you can buy on the market today.
Notice that Good As New doesn’t necessarily mean “brand new.” In fact, the age of a product is often irrelevant to its life stage. What matters is the condition. Some items, including many appliances and tools, can be kept in Good As New condition for decades with careful maintenance. (Others, like pretty much any consumer technology product or gadget, can be in perfect condition yet still fall out of Good As New status. More on that later.)
When to Replace: Items in the Good As New stage should almost never be replaced. Instead, money that would have been spent replacing the item can be used to repair and maintain the item to keep it in Good As New condition. If you’re in the habit of replacing items that are Good As New, you might as well take your existing products to the store, give them to the store for free, and then buy the items back from the store. Yes, replacing Good As New items is that dumb.
Less than 1% of new products you buy should be to replace items in the Good As New stage.
Stage 2: In Working Order
You probably think most of the items in your household right now fall into this product life stage. (And you might be right.) Products In Working Order still do the job they were originally tasked to do. They work well, they might be a little old, but there’s something newer or better out there. If you had an infinite supply of time and money, you would throw these items in the trash and buy some Good As New ones instead.
Product Examples:
- A 12-speed whatchamacallit when they just came out with a 15-speed.
- A fairly-equipped five-year-old car with no mechanical problems.
- A basic toaster that still toasts toast.
- Any functioning iPod that’s more than six months old.
Even without much maintenance or care, many products will stay in the In Working Order stage virtually forever. Unless something malfunctions or degrades due to wear and tear, that basic two-slice toaster could very well toast your great-grandchildren’s toast. Don’t try to tell them that though, because they’ll be using their 30-slice laser toaster while you’re still using Old Toasty.
When to Replace: If a product in your house is In Working Order, you should try to hold off replacing it for as long as possible. The toaster still toasts your bread like it did when you got it ten years ago; it just doesn’t toast the face of your child’s favorite Sesame Street characters into it like some of the new ones do. Or maybe it toasts 99 slices out of 100 properly, but it turns that unlucky one slice into charcoal. Instead of replacing In Working Order items with Good As New ones, you may be able to repair it or even enhance it with replacement parts (like I’ve done with my laptop).
Sometimes, though, it does make sense to replace In Working Items simply because newer versions with useful features or lower maintenance and operation costs exist. Since the current item is still doing the job, you should take your time to research newer versions and wait for a really good deal to come along. But only 5% of products you buy should be to replace items In Working Order.
Stage 3: Wait and See
Items that fall in the Wait and See stage of life are still quite useful and typically in fairly good condition, but they may have some problems or may be moderately out-of-date. You may be able to hold out for some time with an item that is Wait and See, but there are certainly a growing number of advantages to finding a replacement in Good As New or In Working Order condition.
Product Examples:
- My good old 1991 Nissan Sentra.
- A low-efficiency but working furnace that still keeps you warm during the winter.
- VHS tapes, or any other entertainment medium for which players are becoming rarer.
- My cell phone; it calls people and that’s about it.
Hanging on to items that are just Wait and See can sometimes be painful. Your neighbor certainly isn’t helping when he brings home a 10-speaker surround-sound entertainment system while you’re still watching TV on your 19-inch Sorny-brand tube.
When to Replace: Wait and See items belong on your Christmas list, even if Christmas isn’t for another six months. That said, you may want to replace the item yourself, especially if a newer item comes with great features that’ll save you time or money. But before you zip on down to the nearest big-box store, you’ll need to do your homework. Can your current product be repaired at a reasonable cost? (And if so, is there a good chance it will break again before long?) If repairs are out of the question, shop in-store and online for a replacement, comparing a variety of items and feature sets. Since your current item is still doing (most of) its job, you can afford to take your time here. Once you’ve found the right replacement product, consider selling the old one on your favorite internet market place or at a yard sale to help recoup some of the cost of your new purchase.
No more than 15% of products you buy should be to replace items at the Wait and See stage.
Stage 4: Obsolescence
You probably don’t have too many items in this category lying around the house; if you do, they’re probably gathering dust in the attic and you may have a bit of a pack-rat problem. Items in the Obsolescence stage suffer either from moderate to major mechanical failures that would be expensive to repair, very high maintenance or operation costs compared to newer versions, or incredibly outdated feature sets. Even if they still perform some of their original functions, you’re almost embarrassed to still own these products.
Product Examples:
- The car you spend $4,000 to repair every year. And there goes the transmission…
- Your desktop computer that can run Windows 98. Barely.
- A two-slice toaster that only toasts one slice at a time, and it takes 15 minutes to do it.
- Your 30-year-old vacuum that still sucks up 99% of dirt in your carpet… and redeposits 40% of it on your hardwood floors.
When to Replace: The typical item that has reached the Obsolescence stage in your average American household will get replaced inside of a week. That’s not always a bad thing, but it does mean that most people don’t shop around first for a good deal. Just because your washer and dryer are on their last legs doesn’t mean you have to replace them today. You might be able to bum a couple of loads off of neighbors, or you could always hit up your friendly local laundrymatista. For entertainment or convenience products, you may be able to wait quite a while for a bargain price to come along before pulling the trigger.
Still, you may not be in a position to wait months or even weeks to replace items you use frequently such as major appliances, automobiles, or computers. As usual, consider the repair cost and frequency before dropping a wad of cash for a Good As New replacement. If fixing the product isn’t possible and its days are numbered, start frequenting internet deal sites, keeping a close eye out for prices that are “good enough.” You might not be able to score the deal of the year based on your timetable, but you don’t need to settle for the first new item you see.
30-50% of products you buy should be to replace items at the Obsolescence stage.
Stage 5: End of Life
It’s over. Finito. Kaput. Your product has gone to that great junkyard in the sky. You might as well not even own the item anymore. (It might be cheaper that way for some things, since large appliances can be difficult to haul away.) If it’s a product you absolutely need right now, then you better hit the road (assuming it isn’t your car that bit the bullet) and do some serious shopping. Hopefully you saw the untimely demise of your product coming (i.e. it didn’t just jump from Stage 1 to Stage 5 overnight) so you’re already looking around for a replacement.
Product Examples:
- The only thing coming out of your toaster toasted is itself.
- Your car just exploded. A lot.
- You now have two whole-house heaters: your furnace and your air conditioner.
- You just burnt dinner, your whole house is smokey, and the smoke detector with the new battery just sat there silently.
When to Replace: As with items in the other stages, consider if repairs are possible and economical. If they’re not, determine your timeline for replacement. Much like items in Obsolescence, End of Life items may not need to be replaced right away if they’re products you don’t use all that often. If your portable MP3 player just played its last tune, you’re certainly not going to die if you wait a week or two for a good deal on a new one unless you have some sort of strange disease where you need to hear music all of the time or else your brain implodes, which you don’t. Even items you think you need to replace today—dishwashers, microwaves, televisions—can probably wait a bit… at least until you have a chance to scour the internet for a baseline of prices.
And if the idea of dropping a ton of money on a Good As New item makes your stomach turn, you could always look for an item In Working Order or Wait and See condition. Some products, like cars and electronics, are easy to find used at a good price and in good shape.
50% or more of products you buy should be to replace items at the End of Life stage.
By keeping your product replacement habits in line with the suggested budget percentages listed in this article, and by taking care of the things you already own, you can help control the natural consumer impulses to buy the newest, biggest, and best items available. And if following this advice means that you end up with a house full of items in Stages 2 to 5, don’t be embarrassed; be proud that you’ve resisted the urge to splurge needlessly.
As for me, I’m still on the lookout for a new laptop, so hopefully no more keyboard letters fall off until I can find one at a dcnt pric. Oh crp.
Loading ...
65 Responses
1.
Maria @ Financial-Tip
May 6th, 2008 at 2:50 pm
I think my husband’s cell phone falls into the Obsolescence category. Only half the buttons work. Anyone know where I can get a replacement (used is fine) for next to nothing?
Our washer and dryer are in the Wait and See category, but they have been for years and we’re still waiting and seeing.
Cool post.
2.
rocketc
May 6th, 2008 at 5:17 pm
I had no idea that Punny Money was transcribed on a crappy laptop.
3.
Nick
May 6th, 2008 at 5:28 pm
rocketc, were you expecting my laptop to be made of gold and diamonds?
4.
s. jennifer rose
May 6th, 2008 at 8:13 pm
Maria: You can get cheap new cell phones on eBay. Just be careful who you buy from to try and avoid purchasing stolen merchandise. (Unless your moral compass doesn’t care about that…)
——
My boyfriend’s 12 year old car was in the Wait and See category (had stuff wrong with it but it still got us from A to B), and then moved quickly to Obsolesence. The wiring got very messed up: it constantly thought the passenger side door was open, so the inner cabin light would flicker on and off every 3 seconds at night while beeping warnings at us. And it always thought we were low on coolant, and it beeped that at us too. So we stopped driving it at night (I think cars following us thought we were trying to signal SOS with the inner lights). Turned out that fixing the car was going to cost more than he could sell it for as a trade-in, so it was better to trade it in as is, and get a new(er) car. Now his car is in the first category and it has 3 times the gas mileage! Yipee!
5.
Monty Loree
May 7th, 2008 at 8:15 am
I like your plan.
Just recently our very high end expensive drier broke down immediately after the warranty ran out. In order to fix the drier it was going to cost the same as the cheapest new drier at the store.
I just replace the expensive drier with the cheapest drier I could find.
The cheapest drier works just fine, and we saved hundreds of dollars. Now we don’t have the 6 extra buttons that we didn’t understand anyway.
6.
Kyle
May 7th, 2008 at 9:44 am
But what about sophisticated, cultured fellas such as myself who need a new car every 2 years? What about our needs?
You can buy a brand new laptop for $400 with 2 GB RAM and a dual core megasuperawesometritium intel processor these days. Even less if you order it without the OS and install linux.
7.
Mark
May 7th, 2008 at 12:13 pm
This reminds me of a toaster I had during my college years. It belonged to my grandparents, was made out of steel, and had a cloth-covered two pronged power cord. It toasted well enough, but it had a nasty habit of shocking you every time you touched it. Now, this didn’t bother me; I just depressed the switch with a wooden spoon, and very carefully pulled out the toast without touching the sides (kind of like operation). I guess it shocked one too many roommates, though, and one day I came home to find a shiny new toaster in its place. I still have that toaster. I’m saving it for when my enemies come over for toast.
8.
Bruce Point
May 7th, 2008 at 9:56 pm
Purchasing things that are in good working order or good as new has saved our family a lot of money over the past several years. I used to foolishly buy everything new especially cars. I was losing 30 percent of cars value the moment I signed the purchase agreement. I now buy good used cars. I estimate we have saved more than $22,000 since 2003 by making this simple change in spending.
9.
Maria @ Financial-Tip
May 8th, 2008 at 8:28 am
s. jennifer– thanks for the tip! How would I know if one was stolen? What should I look for (yeah, I would NOT want to support thievery!) ?
10.
Chris
May 8th, 2008 at 3:36 pm
My laptop is in the midst of transitioning from stage 3 to stage 5 in a mater of a couple days. The power input works like 15% of the time now, I think I might be in the last few hours of stage 4.
At least I still have my E key, though.
11.
Monroe on a budget
May 23rd, 2008 at 10:10 am
Very clever! I’ll be linking to this.
12.
A.J.
May 27th, 2008 at 9:30 pm
Now I just feel bad. My PowerBook laptop is only 2.5 years old, and I just dying to replace it.
13.
twin
May 28th, 2008 at 1:31 pm
Before I toss away any item in that has reached stage five I disassemble it and keep any parts like screws, cords, connectors, wood, metal strips, and brackets. I keep these parts in small bins in a storage closet in the garage. It is amazing how I can find just the right part for new projects. I enjoy re-using old parts and machines in new applications. I am a computer teacher and I get discarded computers, refurbish them and install Ubuntu Linux. I give them to students who use them for years. PS – Have fun and save a bundle by riding a bike. You will feel great!
14.
rocketc
May 28th, 2008 at 6:53 pm
twin, i would hate to be one of your kids who has to clean out your house after you die.
15.
Spencer
September 25th, 2008 at 10:01 am
There was a time when I had to have all the new and most expensive toys – laptops, cell phones, mp3 players, TV, you name it. However I was able to break free from this annoying and expensive habit, and guess what – I’m much better off now. My 4-year old cell phone is just fine (not cosmetically of course) and my 3-year laptop still works for me.
Thanks for the great post!
Spencer
16.
John
October 9th, 2008 at 9:08 pm
I have a 4 month old laptop which I would like to replace lol!
John
17.
Jonathan@Friends&Money
February 22nd, 2009 at 8:40 am
brillaint article. It’s funny how when you see it clearly written down like this, it enables you to make a more objective decision. I always believe in only replacing items when you need to, and I don’t go for having the latest model just because it’s just come out.
18.
Mr. Digital mp3 player
May 5th, 2009 at 7:39 am
Yes, I agree with you Nick .
I think i will tell this information again to my friend and I hope this information will be usefull for them… oh yes I have blog about Mp3 and Gadget Tips and Guide and I hope you don’t mind to check my blog. I hope the article on my blog will be usefull for you… and we can share each other. thank you…
Mr. Digital mp3 player
19.
Johnny James
May 15th, 2009 at 10:17 pm
My heat pump failed and I found a great site where I can save money by having a new one shipped directly to my home. I think that this new system has these poor parts but I am hoping that it lasts longer than the last one. With the savings I got from the site I purchased a lot more efficient one to save on my energy bills. Now when I went back to the site they are sharing how you can also get back a Tax credit from uncle Sam. I liked using this site saving me money. Check this out at http://www.acfool.com/$1500-big-tax-credit
20.
College Savings 529 Plan
May 18th, 2009 at 1:15 am
I think that people ought to take measures not to buy unnecessary and inexpensive items when you actually don’t need one. This is the time were one should be budget wise.
21.
Hardwood Flooring
May 28th, 2009 at 11:52 pm
You never want your flooring to get to the Obsolescence stage, for if this occurred you would probably have major holes in the wood covered up by area rugs, which is both dangerous and hazardous.
22.
Carpet
June 29th, 2009 at 3:46 am
You know when your Carpet is in the lifestyle where you need to get rid of it is when the stains overpower the original color so much so that you forget what the carpet first looked like.
23.
hialeah computer pc laptop repair
July 11th, 2009 at 12:53 pm
You have mad skills and I’m glad I found you!.
24.
شات كتابي
December 8th, 2010 at 12:00 pm
Le sujet d’un mile et une sortie très spéciale et de vos créations par écrit
25.
ديكور
December 9th, 2010 at 3:56 pm
You all the greetings and appreciation to this article
26.
Stephen
January 6th, 2011 at 10:59 pm
I feel sorry for the comic guys oven. Technology is something you really cant invest in. The depreciation on any new application is so high these days. Newer and better things are unveiled straight after you purchase your “new” appliance. So hard to keep things up to date these days.
27.
alarabforum
February 14th, 2011 at 11:03 pm
You all the greetings and appreciation to this article
alarabforum
28.
zara
March 25th, 2011 at 10:42 pm
http://www.vibramfivefingershoes2011.com/
29.
haiying
April 12th, 2011 at 4:39 am
http://www.mylouisvuittonoutlet-sale.com/
30.
xx
April 27th, 2011 at 3:27 am
http://www.louisvuittonoutletsale.org/
31.
zara
May 14th, 2011 at 4:08 am
http://www.burberrybags-store.com/
32.
adidas fg soccer cleats
July 14th, 2011 at 10:51 pm
It made me new football cleats realize. QL
33.
burberry outlet
July 28th, 2011 at 3:10 am
thank you for sharing,this information is useful to me.good quality
34.
wholesale Gucci
August 3rd, 2011 at 12:42 am
dsfgdhgfhghf
35.
حلقات مسلسل بوكريم برقبته سبع حريم
August 3rd, 2011 at 6:02 pm
thank you for sharing,this information is useful to me.good quality
36.
Hire SEO Company
August 18th, 2011 at 6:08 am
I agree with your conclusions and will eagerly look forward to your future updates. Just saying thanks will not just be enough, for the fantastic clarity in your writing.
37.
bamboo plywood
August 27th, 2011 at 1:49 am
Great article, like it so much, glad to know you share it.
38.
bamboo flooring china
August 27th, 2011 at 1:49 am
Great post, love it, thanks for sharing
39.
الرياض
August 28th, 2011 at 11:30 pm
I like your plan.
Just recently our very high end expensive drier broke down immediately after the warranty ran out. In order to fix the drier it was going to cost the same as the cheapest new drier at the store.
I just replace the expensive drier with the cheapest drier I could find.
The cheapest drier works just fine, and we saved hundreds of dollars. Now we don’t have the 6 extra buttons that we didn’t understand anyway.
40.
Home Improvement
September 14th, 2011 at 7:07 pm
Couldn’t agree more with your comment on this post and it seems you are getting lots of feed back on this post.
41.
دردشه مصريه
September 15th, 2011 at 8:16 am
mcryh.com
42.
منتديات صبايا
October 30th, 2011 at 8:39 am
I agree with your conclusions and will eagerly look forward to your future updates. Just saying thanks will not just be enough, for the fantastic clarity in your writing.
منتديات صبايا العرب
43.
معهد
November 20th, 2011 at 6:11 pm
I have a presentation that I am presently working on ,,, and I have been looking for such information.
التقويم الهجري 1433
44.
دردشة عراق الرومانسية
December 23rd, 2011 at 1:36 pm
thank you a lot’s bro
45.
cheap fake watches
January 5th, 2012 at 12:43 am
details I appreciate you taking time to share such valuable information. This is my very first comment, I think I like this!
46.
replica jewelry
January 26th, 2012 at 12:51 am
it is a marvelous post. thanks for the information.jutdu
47.
شات
January 27th, 2012 at 7:03 pm
thanx this topic very very good
i will spend my time in this site
48.
Garden Umbrella
February 1st, 2012 at 2:45 am
There are definitely a lot of particulars like that to take into consideration. That is a nice point to carry up. I offer the ideas above as common inspiration however clearly there are questions like the one you carry up where a very powerful thing shall be working in sincere good faith. I don?t know if greatest practices have emerged round issues like that, but I’m certain that your job is clearly identified as a fair game. Both boys and girls feel the impact of only a moment’s pleasure, for the remainder of their lives.
Garden Umbrellas
49.
دردشة العراق
February 16th, 2012 at 6:03 am
thanx this topic very very good
i will spend my time in this site
50.
منتديات
April 22nd, 2012 at 11:16 pm
jksdvk dsfvsweefvg klefweef
51.
منتديات
April 27th, 2012 at 11:33 am
Good Hammsa
52.
شات
April 27th, 2012 at 11:33 am
Good The Chat ..
53.
cheap power tools
April 29th, 2012 at 9:09 am
This is so true on all kinds of appliances. It works and it will eventually die out on us LOL.. well this proves that nothing is really permanent.
54.
صور2013
May 19th, 2012 at 10:49 am
good man this topic very good
55.
اخبار الاهلى
May 29th, 2012 at 9:34 pm
Good thing “Punny” is in the title before “Money.” If it weren’t, I might care!
56.
royal mediterranean hotel
July 24th, 2012 at 4:18 am
Royal Mediterranean Hotel is a famous 5-star hotel in Guangzhou. Book Royal Mediterranean Hotel Guangzhou now, you can enjoy VIP discount and quality service. Royal Mediterranean Hotel will be your best choice for your business or vacation trip in Guangzhou.
57.
دردشة حبيبتي
August 4th, 2012 at 1:45 pm
Thank you
منتديات حبيبتي|
58.
دردشة عراقية
September 11th, 2012 at 4:27 pm
I didn’t mean to imply that Punny Money readers are more likely to save a refund. In fact, Punny Money readers probably care more about their finances and adjust their W-4s to minimize or avoid a refund in the first place.
Sorry, the comment form is closed at this time.
Trackbacks & Pingbacks
[...] The Five Stages of a Product’s Life — Saving You Money on Replacing Expensive Household … – Is This Meal at Wendy’s Really Frugal? Some Related Posts: Frugality: Increasing Your [...]
Pingback by What are Your REAL Savings? — May 7, 2008 @ 3:08 pm
[...] Punny Money has an illustrated article with examples on The Five Stages of a Product’s Life. [...]
Pingback by Monroe on a Budget » Punny Money: Five Stages of Product’s Life — May 23, 2008 @ 10:14 am
[...] Punny Money is always funny, so check his The Five Stages of a Product’s Life: Saving You Money on Replacing Expensive Household Items. [...]
Pingback by » May Link Love (Selected Investment Links) # The Shark Investor — May 29, 2008 @ 10:56 am
[...] for me, since my notebook is still in Stage 3 of its lifecycle, I’m hoping a good deal on a sub-15-inch notebook will come along this summer because I [...]
Pingback by Super-Widescreen Laptops: My Lap Isn’t THAT Big! | Punny Money — June 12, 2008 @ 12:46 pm
[...] The Five Stages of a Product Life Saving You Money on Replacing Posted by root 28 minutes ago (http://www.punny.org) A new car fresh off the dealer lot a refrigerator you just bought new at the appliance store your 30 year old vacuum that still sucks up 99 of dirt in your carpet and holes in the wood covered up by area rugs which is both dangerous and hazardous punny mo Discuss | Bury | News | The Five Stages of a Product Life Saving You Money on Replacing [...]
Pingback by The Five Stages of a Product Life Saving You Money on Replacing | outdoor rugs — June 13, 2009 @ 6:41 pm
[...] o connor dan marino passing record ipad 2 cases movie times serene branson matthew mcconaughey to catch a predator Share this:TwitterFacebookLike this:LikeBe the first to like this post. [...]
Pingback by State of the Union Replay (Taegan Goddard’s Political Wire) « ucetugimi — January 27, 2012 @ 11:16 am
[...] news seattle news jenna fischer ben bernanke anwar al awlaki amanda knox apple press conference Written by awaray Posted in [...]
Pingback by Reward offered for released Mississippi murderer | Miley Cyrus News Today — January 28, 2012 @ 1:12 pm