Eileen is Gone.
Eileen was my 1988 Ford F150 pick-up truck that has been an invaluable treasure at my home. In 2004, we purchased her for $1,000 USD from a local veterinarian who had purchased her from a local farmer. Eileen came full of chicken feathers in the heating vents so whenever we switched the heat on, the feathers would fill the truck cab like confetti. Her leaf springs were...well...not so springy and the family of mice that made their home in her kept us entertained with sudden appearances on the top of the hood.
Like all good vehicles in New Hampshire, Eileen's time neared the end as the road-salt induced rust wore at her body and engine. She increasingly became a challenge for the mechanics with busted bolts, fraying cables and dry-rotten tires. It was the dying alternator that finally took her life.
Boy, I loved that truck.
Eileen started like a bright sunshine filled day every time I turned the key. She supported the loads of compost, dirt, rocks, woods, trash and furniture in her rotting bed. Whenever I drove her she lifted me back to a place in time: in my grandfathers farm truck bouncing around on dirt roads, climbing up into the truck and hopping on the bed for a spin around the neighborhood.
Over the five years Eileen had her typical repairs, but she was a great during that time. Her average cost per month was about $42 USD. I debated whether to keep her going. Her ability to help with the chores, bringing back fond memories and keeping me entertained was of value. I needed to figure out what was the price of this value.
How could I set a price?
First, I determined how my needs were met with the truck then what would I be willing to pay for the functions and features of those needs. I estimated she worked 6 hours a week at an hourly rate of $25 thus, an annual amount of $7,800 USD. Next, to try to capture the aesthetic value I utilized my cable television bill because of the entertainment of the truck thus, $648 per year.
Eileen's Costs
Evaluating her price + life cycle + risk I used the following data:
Average monthly cost of $42 thus, $504 per year.
Her life cycle began to really suffer the last two years deteriorating at a rate of 60 percent.
Her risk factor increased with the continued rotting of tires and leaf springs.
Comparison
After, the mechanic unsuccessfully tried to revive her alternator and her value as scrap metal increased, her price value became even less. Combining her benefits and her costs allowed me to think of her with the mind of a customer looking at a product. Granted she worked hard and helped with carrying the heavy loads and she was a blast to drive but I had to make this comparison, like a customer does when selecting our products and services.
It was her risk factor that continued to weigh heavily on me. She had begun to make me feel less safe driving her as her squeaks, rattles and rolls got louder. The tire began to split and her reliability the last month waned. I researched her replacement competition finding results that showed it is time. So, like a good customer would determine I weighed the options.
Eileen's New Life
Eileen will be reincarnated in another form as she journeyed to the scrap yard today. Her memory will last with my family and I. She served all her owners well. Now, my search begins for another truck with a good price value. I know I can never replace Eileen, she was unique.
How do you determine the value of your products/services/purchases and compare the risks?
Thanks to Rebecca for commenting on my last post and thanks to everyone reading.
