On Sat, 10 Sep 2011 16:26:16 -0500, Jeffrey Angus
wrote:

Perhaps, but where's the break even point on a $19.95 DVD player
from Wal-Mart?

That depends on the warranty period. If it's a 90 day warranty, then
the break point (or point where it breaks) is 91 days.

However, the original point is generally correct. It is often cheaper
to replace than to repair. About 20 years ago, my rule of thumb was
that customers are willing to pay 10-25% of the purchase price on
repairs before they buy a new device. With $600 computers being the
commodity price, I can charge between $60 and $150 for a repair before
they begin to complain. At $75/hr, I can't even open the box and look
inside for $60, but $150 might work for simple (software) repairs that
I don't have to warranty. If new PC's were $3,000, I could make
money, but not at commodity prices. This is not the road to riches.

Phil's $4000 whatever device is well worth repairing. However, if the
replacement costs $19.95, forget about repairing.

I recently sent a laptop to China for motherboard repair. Unlike US
repair shops, I did NOT have to remove the motherboard. Cost me $40
in shipping both ways, and $80 for parts and labor. Total time was
about a month. I charged the customer $200. This should offer a clue
where we're heading.

--
Jeff Liebermann
150 Felker St #D http://www.LearnByDestroying.com
Santa Cruz CA 95060 http://802.11junk.com
Skype: JeffLiebermann AE6KS 831-336-2558