Toward the end of the summer, I bought a new dishwasher after agonizing over a big-ticket purchase. My dishwasher had stopped working at the start of the summer, but with several pre-booked travel plans, I decided to wait and simply wash dishes by hand whenever I was home.
After washing more than my fair share of dishes, I became eager to make the purchase. Still, I decided to wait once again, hoping Labor Day sales would make it worth my while. And they did.
My dishwasher had to be special ordered because I had chosen nonstandard dimensions and colors for my kitchen appliances — a decision I now regret. Fortunately, holiday promotions saved me nearly $200. Once I received confirmation of the delivery date, I scheduled a technician to handle the installation; I felt good about my purchase, knowing the promotional savings would offset the technician’s fees. I was also glad to put the purchase on my Mastercard, since I would earn credit card points that could later be used to help offset other expenses.
The same day my dishwasher was installed, my family went out to eat, and when the bill arrived, I found the comparison almost laughable: our meal plus the tip was approaching half the price of the dishwasher. How silly I had been to put off buying an appliance that would undoubtedly make my life easier and last for thousands of wash cycles — unlike the dinner that we enjoyed and consumed in under an hour.
In retrospect, there was no need to agonize over the appliance purchase. I could manage the expense by forgoing a few nights of eating out. But that realization also highlighted a familiar consumer behavior: we often scrutinize large, infrequent purchases while accepting smaller, convenient expenses with little deliberation.
Routines reinforce our behavior, and certain costs become customary. Eating out at least once a week has become a standard practice that my family values. The appeal extends beyond the meal itself; it’s an opportunity to get out of the house and spend time together. Restaurateurs are selling more than food; they are selling an experience that competes with the alternatives for how we spend our time as well as our money.
Our household budget, though, was top of mind when getting our bill at the restaurant that night, and the cost of eating out has certainly risen. Labor costs, food prices, and operational expenses are spilling over into the prices of menu items for customers and squeezing the profit margins of restaurants.
Daily specials such as Taco Tuesday and Wing Night Wednesday, along with half-price happy hours, may help customers continue patronizing their favorite local spots. But as costs rise, restaurants may find it increasingly difficult to offer such deals while maintaining their margins. Promotions can help attract customers, but discounts are not costless. Both consumers and the businesses they patronize must continually make choices about how to allocate scarce resources.
These purchases illustrate how differently we value time, money, and convenience. A dishwasher represents a durable consumer good that provides services long after its purchase. Conversely, a restaurant meal disappears once the evening ends. But both can provide lasting satisfaction. Some of the greatest talks and memories can happen while sharing a meal. Likewise, being free to spend more time with family rather than doing dishes after dinner is truly a blessing. As such, neither purchase is inherently better. Each satisfies different wants, and consumers decide how to allocate their resources according to the value they place on them. If buying a dishwasher meant giving up dining out forever, I would gladly return to washing my own plates and pans.
Fortunately, that is not the case. While the price of a dishwasher was a chunk of change, the cost of washing dishes by hand was higher. I value my time and effort too much to go without one and the Labor Day promotion that shaved about $200 off the price was too good to pass up. When goods become more affordable, we gain more than a cheaper appliance; we gain time and options for spending our extra dollars elsewhere.
As Ludwig von Mises explained it in Human Action:
Value is not intrinsic; it is not in things. It is within us; it is the way in which man reacts to the conditions of his environment. Different people and the same people at different times value the same objective facts in a different way.
I still intend to eat out with my family and support local restaurants. I also intend to enjoy my new dishwasher. Labor-saving technology makes it possible to have both. The dishwasher was expensive, but it also gave me something I value more: time. The next time I hesitate over a big-ticket purchase, I’ll try to consider not only what it costs, but where else I can save and what the purchase will give back.