A couple of weeks in the past our microwave went on the blink. It nonetheless labored however after we opened the microwave’s door, a fan instantly began up. The GE repairman confirmed up right this moment.
After analyzing it rapidly, he was fairly positive he may repair it. However, he warned us, it was about 8 or 9 years previous and the everyday life expectancy of that mannequin was between 6 and eight years. He appeared to be hinting that we must always purchase a brand new one. I requested him how a lot a brand new one could be. He replied that it could be about $300. That didn’t sound dangerous.
“Can we purchase from you and does that embody the set up?”
“No,” he answered. “You’d go to a spot like Residence Depot however we don’t set up.”
“How a lot wouldn’t it value to repair this one?” I requested.
“A little bit over $200,” he answered.
“However the service cost of about $130 goes in the direction of that $200, proper?” I requested.
“Sure,” he answered.
So the $200 was deceptive. The $130 service cost was a sunk value. A little bit fast arithmetic advised me that the marginal value of getting the microwave fastened could be solely a bit over $70. And we’d have a working microwave instantly.
So we had him repair it.
Sunk value versus marginal value.