Introduction:

How can we sleep better by using better mats?

Recently, I couldn’t sleep because I was worried about what it would cost to resolve a difficult situation. The last thing I wanted to do was spend more money than I had to, but if we didn’t spend now, it could cost us a lot more in the future. After suffering a bit, I reframed my problem into an opportunity. “We can make a small investment now to avoid a certain loss over two to three years.” 

Loss avoidance, especially in this financial environment, is a critical driver of sanity and better sleep. For the brave ones, sanity and sleep come through making better investment choices. Same idea. Different side of coin.

 

Using Total Cost of Ownership to Help

In a previous article we explored using measurements, for example, Total Cost of Ownership (“TCO”), rather than purchase price to help you sleep better.

In that vein, think of Total Cost of Ownership in these terms: Purchase Price + Lifetime Freight + Lifetime Replacement = Total Cost of Ownership.

How Can a Pair of Boots Help Me Sleep Better?

Think of a great pair of boots vs. a cheap pair that will last two years: You spend a bit more now, but they last you for a decade. And, you don’t have to go through the buying hassle every two years (unless you like to shop!)


One way to think about the boot’s TCO would be to say, “Invest another $110 in a better boot, and get a $325 return over 10 years.

A better way might be to say, “I can save myself $110 by buying a cheaper boot, but I will lose $325 over ten years.”*
In short, you can frame it anyway that works for you. For many of us, framing the choice works better by thinking of how we can avoid losses rather than make gains.

*For those who want to see the boot analysis…here it is:

 

High Quality Work Boots. Leather & Vibram soles (10-year lifespan)

Lower Grade Work Boots. Mixed materials, various soles (Two-year lifespan)

Purchase Price

$260

$150

Lifetime “Freight” aka laces

$5/pair every two years

$5/pair x 5 pairs = $25

$0 (Laces come with new boots)

Replacement Boots

$0

4X $150 = $600

Replacement Vibram soles (every 3 1/3rd years)

2X$70 = $140

$0

Total Cost of Ownership

$425

$750

Difference

Costs $110 more; avoids a $325 loss.

Costs $110 less; if you don’t know how long you will use your new boots this might be a decent option.