Repair or replace: Some troubleshooting tips
If the repair cost is more than 50 per cent, it may make sense to replace
IIF the repair cost is more than 50 per cent, it may make sense to replace, writes
Ranjan Sinha (name changed) has a tough call to make. Should he replace his 10-year old washing machine or repair it for the nth time. In the past few years, besides incurring regular servicing expenses, he has replaced the main dashboard three times – costing ~3,000 every time. Now, it seems, the spinning part has to be replaced at the cost of ~7,000. Given the original cost of the machine was ~14,000, he has already spent the same amount to repair it. Four months back, the decision would have been to replace. But, after facing a severe salary cut, he is quite unsure whether he should shell out another ~ 20,000 or more for a new machine. The consequence: He has neither repaired the machine nor bought a new one.
There are many like Sinha who are facing this dilemma. Due to the Covid crisis, most are working from home and the usage of laptops, television, air-conditioner and others have increased substantially. And due to the heavy usage, some of them need repairs, or perhaps, even replacement. But people are worried about expenses and would like to think hard before swiping that card. So, the question – repair or replace needs answers.
Cost more than 50%? Replace: This the first, most important, test. As work and study from home become the new normal, the reliance on digital technology has increased fourfold. If you find yourself stuck with a bad gadget, there is no other option but to replace it. Muneer Ahmad, business head, Viewsonic India says: “The thumb rule for repair/replace gadgets is that if you need more spend 50 per cent of the cost of the item on repairs, buy a new piece.”
Breaks down too often? Replace: Another thumb rule to rely on is; if an item has already broken down once before, replacement may make more sense. Else you may get stuck in the repair loop for a while. So ask yourself if it is a one-time cost and is the item repairable?
Too old to repair? Replace: Ahmad says, "The age of the gadget also plays an important role." If you are near the endof-the-life cycle of the gadget, it makes more sense to replace it than repair. Ahmad says, "The new gadget will come with a warranty" that will give peace of mind than struggling with an old device. Also, you will be able to get the latest features with the new device.
In warranty? Repair: Check the warranty papers of the gadget, if your piece is still in warranty. Many companies have voluntarily extended the warranties of items when the warranty expiration date has fallen during the lockdown months of March to June.
Convenient option? Repair: There are several repair options. Today, right from step out to visit a service centre to even door-step service. Delivery apps are happy to pick your item and drop at a repair centre and collect once repaired for as less of ~40, one way. You don't have to step out either.
Another option is buying a refurbished piece. As Nakul Kumar. CoFounder & COO at Cashify says: “While a phone may be obsolete for one consumer, it may be useful for somebody else.” A refurbished phone is just a second-hand phone. Sometimes customers may have sold it back to the retailer to upgrade. So, in short, going for a refurbished option is a lot more economical than buying a brand new piece. If you are someone who is not comfortable buying a second-hand phone or a refurbished item, one option is to choose a lower version. But it may not be possible for elite brands.
What about big -tickets items? When it comes to cars, safety is paramount. Sunny Kataria. Vice President at OLX Group says: “Eventually, you might come to a point where you want to replace a car but getting it repaired before replacing it will take a major chunk from your pocket. Now there is an easy sell module like cash, my car and others.” These players buy your car, fixes and sell it in the second-hand market. It's an excellent way to get cash for a vehicle which is giving a headache and using the money for another car. The daily listing of passenger vehicles on OLX has grown 6 times and user interest (daily reply) has grown 3.5 times, post lockdown. Adds Kataria says: “People who have very old cars are replacing them with the used ones, but younger used cars.” So, while you get rid of your 8-year-old clunker, you don't need to buy a brand new car, settle down for the same model which is four years’ old. Rakhi Thakur, Associate Professor of Marketing, Bhavan's SPJIMR, says: “Today, it not just about the monetary cost, but convenience also comes into play.” In addition, due to the Covid crisis, many households with senior citizens are worried that calling people for repairs inside the house. So, many might prefer to replace cheaper items. Rutu Mody-kamdar, Founder- Director at Jigsaw Brand Consultants says: “Though the frequency isn’t high, people are buying or event shopping for electronic gadgets, electronic kitchen gadgets and some other items. Anything which will make their life easier or help them feel good.”