Repair or Replace

Something is broken. Get a new one!

Wait.

Since when is that a smart business decision?

Years ago, I purchased a pair of jeans, the distressed look with holes. My grandmother asked me if I needed her to patch them. I laughed and told her this was how I bought them. She, was shocked. See, in her day when something was broken you had it fixed. You would call the repair person for your television, microwave, or you would learn to sew the fresh hole in your jeans.

Money was scarce and people were more conscious and cautious of their spending. Now, instead of repairing our iPhone, we’ll “upgrade” and get a brand new one, when the repair would cost half of the replacement.  With the surplus of options and ease of financing operating our business could be costing more because of impatience.

How are you spending your business’ cash or credit? Are you purchasing true assets that will add value to your customers? Would you consider delaying the purchase of a new item if you are unable to communicate how it will save you time or other resources important in your company?