On 2006-10-05 14:02:14 +0100, "Fitz" said:


Andy Hall wrote:
On 2006-10-05 13:09:21 +0100, "The3rd Earl Of Derby" said:

Andy Luckman (AJL Electronics) wrote:


Oh well, one day you might understand value for money rather than
cheapness.


I do and since the BJ will only get used a few times I've saved oodles.

Some money, but wasted more than that which has been saved in time
spent doing it.

This is only true if you had the opportunity to work during the period
of that trip either as a contractor or authorised overtime or whatever.
If the alternative was doing anything else which didn't earn money
then he has lost nothing.

That's a faulty argument.

Virtually all time costs money.

If you waste it returning faulty goods then it is time taken when you
could have been doing something else. That might have been paid work
as you suggest.

If I count personal earnings potential for a day, it amounts to one
figure. However, if I add opportunity cost - meaning loss of business
revenue - then that is very considerably more.

However one should also count time that is used to save money.

For example, if I do a DIY job that I would have to pay someone else
£160 in labour to do and I do it myself in an 8hr day, my time is
costed at much less than my earnings and business potential.
Nonetheless, it is significant. Let's say I have a faulty product
which prevents me from completing that job and it takes me 2hrs to go
and get it replaced then there is a direct and measurable cost of £40
plus probably another £10 in fuel, parking and car depreciation.

If I had added that £50 to the £20 that the product originally cost, I
could have had a much better tool and not the frustration and
inconvenience of the delay to completing the job.

This is the difference between thinking about the complete picture and
buying on value, rather than one small piece and buying on price.