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Originally Posted by curves2000
I can without a doubt confirm with you that a lot of things in life have significantly reduced in cost compared to many years ago, The cost of air travel is one that a lot of people just can't comprehend. Computers, laptops and other electronic devices. Lot's of things.
When it comes to appliances, my experience as a landlord with appliances is where I get my data from. On the properties where I have space and the ability to have older, more reliable and repairable appliances. I do! On some of my apartment units where smaller stove and fridge is required, I can't as it's hard to find. I am forced into the brand new, cheap, throw away Chinese crap. Magic Chef, Midea etc. They have doubled in price but are effectively 3-5 year fridges. If a minor issue occurs, I try and troubleshoot myself. There is no financial logic to try and call my repair guy cause 1-2 service calls to replace a part may cost $300-500 or even more. It's gotten to the point where it may make sense for me renovate the units for more space to get larger appliances where I can seek out older, refurbished models that last and are repairable.
When it comes to automobiles, it's not that new Honda's and Toyota's won't go to 500k. It's the operating cost associated with getting there is getting higher every year. Servicing cars these days is beyond absurd cost wise.
Your 2006 Toyota is probably a tank. The Honda's and Toyota's from years ago were made completely different. The Japanese part supplier industry was very different which set Japanese automakers apart quality wise. Japanese built cars were in a different quality category than North American built from the same manufacture too. It was very much small companies who produced specific parts. Like everything else these days it's big business and big suppliers have taken over. A lot of parts in modern day Honda's and Toyota's may as well be in entry level Ford's and Kia's.
I don't want to get too off topic but let's look at other "innovations" that really just drastically increase the ARPU for people. People can argue the merits of improvements but fail to realize that these things just actually cost them more. Apple AirPods style headphones, anything dealing with the Gillette Razor and Blade business model from P&G, planned obsolescence with virtually everything. Mattresses with all this foam that will wear out as opposed to metal springs etc.
It's tough to explain but I think people are convinced they are getting better deals in life then they think. Convinced that Rogers/Telus/Bell and Apple gave them some amazing new deal when their financials literally pointed to something else.
When I brought up Proctor and Gamble it's because it's a great illustration with how innovation within business works but consumers are convinced it's better overall for them. Tide laundry detergent is just powder or liquid, that's it. As a result of "innovation" on a simple product, I believe I had read a long time ago that P&G made an extra $15-20 billion in 10 years+. All those pods and fancy jazz pay more per user, per wash, every week for life.
This applies to Crest toothpaste with who knows how many options when the cheapest option does the best. Ads on social media/tv about running dishwashers even half empty since it's better for the environment (LOL) how many ten's of millions in extra Cascade detergent/rinse aid/dishwasher cleaner do they sell with a simple message that people believe?
People can spend their money however they wish but I am convinced that people need to be a lot more diligent with where some basic elements of their money go. Try and buy quality. Look at operating expenses, look at reparability, do homework on products, run some basic numbers. Despite being a landlord for my entire life with coin laundry, I have told friends and family to buy Speedqueen/Huebsch washers and dryers. They are reliable, designed for long term and overall cheaper long term since they are commercial grade. Nobody listens, even family who have them in their own commercial buildings, it's shocking to me. Just continue to buy Costco/Home Depot grade and have them break all the time.
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Companies taking more profit doesn’t necessarily mean the consumer pays more than they used to. It’s just that the surplus generated through automation, modern supply chain, and paying less have a portion taken by the consumer.
I’d disagree that commercial grade appliances in a residential setting is a money saving choice. There is no reason to pay for continuous use quality when you use it an hour a day. You keep saying do the math but really do the math. None of the numbers you have brought up back up your suggestion that life cycle costs used to be cheaper.
Yes buying a $1000 machine will be cheaper long term than a $3000 dollar machine and a 10% discount rate.
To your other point of companies developing products under the guise of convenience to increase per cost of things. Absolutely that happens. The kureg being the best example. You don’t have to participate in that. It’s not evidence that goods are more expensive today then they used to be.