The lowest price is not automatically the best choice

You are looking at two rain jackets in an online shop: one for 25 euros, one for 89 euros. They look similar in the product photos, and both claim to be waterproof. At this point, whether cheap or high quality is the smarter choice cannot be answered from the price tag alone. If you only look at the figure in your basket, you overlook how often a product has to be replaced before the real sum works out.

For some purchases, the cheapest option really is the most sensible one; for others, a higher purchase price pays off over time. The difference lies in how long a product actually stays in use and what can break on it during that time.

What a product really costs over its lifetime

A purchase price of 25 euros looks cheap as long as you do not divide it by how long you use the product. If a product only lasts one season while a more expensive version lasts five, the picture changes considerably. What matters is not the price on the day you buy, but the price per year or per use that a product costs you over its whole lifetime.

The worked example: two rain jackets compared

Say the cheap rain jacket for 25 euros lasts one season on average, after which the zip or the seams give way. Over five years, you buy it five times: 5 × 25 euros comes to 125 euros. The more expensive jacket costs 89 euros up front but really does last all five seasons. That means a single purchase of 89 euros over the same period. Over five years, the more expensive jacket is 36 euros cheaper than buying the cheap one again and again, even though it cost more than three times as much at the checkout.

The sums tip the other way, though, as soon as the assumptions change. If the more expensive jacket only lasts three seasons instead of five, because it gets more wear than planned, its advantage shrinks considerably: over five years you would then need a second expensive jacket for another 89 euros, making 178 euros in total, more than the 125 euros for the cheap one bought repeatedly. That is exactly why the calculation is only worth doing with a realistic estimate of how long something will actually last, not with the most optimistic assumption from the product description.

When the cheap option really is the smarter choice

Not every product benefits from this calculation. Children often grow out of their shoes before they are even worn out, so a more expensive pair rarely pays off here. The same goes for items you only need once or a few times, such as a costume wig for a single party or a tool for a one-off project at home. In these cases, it is not the lifespan that decides what the purchase is worth, but how much you actually use it, and that stays just as low whatever the price.

• Short-term use: a one-off occasion rarely justifies paying extra for durability.
• Sizes or trends that change quickly: children's clothes or short-lived fashion hardly ever make a high purchase price worth it.
• Uncertain need: if it is not clear whether you will use a product regularly at all, the cheap option is the smaller risk.

Repairability and spare parts as part of the calculation

With technical devices there is one more point to consider: can a device be repaired if a part fails, or does any fault automatically mean buying a whole new one? A look at repairs, spare parts and the right to repair shows how this affects you in everyday life. A slightly more expensive device where a single component can be swapped out can work out cheaper over the years than a cheaper model that has to be replaced entirely at the first small fault.

Do not forget running costs and material quality

Besides the purchase price itself, with many products what they cost to run also plays a part, for example electricity or water use with household appliances. The article Household appliances: check the energy label first describes how these running costs add up on top of the purchase price over the time you use them. If you buy a cheap appliance that uses a lot, you often end up paying back the supposed saving elsewhere over the years. Where you do not need a brand-new device, it is also worth looking at refurbished goods, which the article Refurbished, open box and seconds explained puts into context, as a middle way between the new price and cheap goods.

A simple rule of thumb for your next purchase

Before you choose between two price levels, a quick thought helps: how often will you actually use the product over the next few years, and what would a replacement cost if the cheap version breaks first? For everyday items you use often, such as shoes, bags or kitchen appliances, the calculation usually comes out in favour of the longer-lasting option. For items you rarely use or that date quickly, cheap is often still the more sensible choice. In the category overview on daily-coupons.info, you can often compare both price levels of the same product side by side before you decide.

Frequently asked questions

Does a higher purchase price always pay off over time?

No. It depends on how often and for how long a product is actually used. With short-term or occasional use, a high purchase price rarely pays for itself, whereas with everyday items you use often, it usually does.

How can I tell before buying whether a product will last?

Information on materials, workmanship and, for technical devices, repairability gives you a first indication. Where that information is missing, comparing similar products in the same price range helps you get a feel for the usual material quality.

What if I cannot afford the more expensive version right now?

Then the cheaper version is the right decision for the moment, even if it might cost more over the years. A product beyond your budget saves you nothing in the end if it puts you under financial pressure.

Does the calculation apply to children's clothes too?

Only to a limited extent. Children often grow out of a size before the item is worn out, so a high purchase price pays off less often here than with adult clothing, where the size stays the same.

What do I do if I do not know in advance how long a product will really last?

Customer reviews that specifically mention how long something lasted often give a more realistic guide than the shop's product description alone. If there are no such hints, a cautious, rather shorter estimate of the lifespan is the safer basis for your own calculation.