Cost Vs. Value

Cost Vs. Value

Cost Vs. Value

The report is in and once again garage door upgrade was ranked as a top remodeling project for return on investment!*

What is Cost Vs. Value

Cost vs. value is a general concept that seeks to strike the right balance between the cost of an action or item and its overall benefit. For example, if an item costs a higher amount yet has little overall value, that cost is not justified. 

As an example, let’s compare a small house appliance like a toaster. First, figure out what you want out of this toaster. Do you want a 4-slice holder, but only need 2? Do you want customizable shade options? Is a smaller unit more convenient? Do you want a warranty? How often are you going to use it?

Research a few options and look at their specifications, customer reviews and price. For this example, we will compare two unnamed brands from a department store: Toaster A and Toaster B.

Toaster A is a 2-slice toaster with extra wide slots and a high-lift lever for easy toasting of big or small breads or bagels. There is a slide-out crumb tray for easy cleanup. It has a 750.0 output wattage, weighs 2.36 pounds, is made of plastic, and is small enough to easily fit on a shelf.

Toaster B is a 4-slice toaster and has 7 shade settings for everyone’s preferred crispness as well as an easy pull-out crumb tray for quick clean-up. This toaster also has additional functions such as a defrost and a cancel option outside of the lift lever. It has 850.0-watt outage, weighs 6 pounds and is made of stainless steel. It also comes with a 2-year limited warranty from the manufacturer.

At this point you can check the price, or you might already have. Toaster A retails for $9.99 while Toaster B retails for $39.99. This is where the cost vs. value comes into play. While toaster A is cheaper, it doesn’t come with the extra features and wattage you might want. It also is made of a less durable material and doesn’t come with a manufacturer’s warranty.  It’s also important to figure out if you need the 4-slice holder or if it might take up too much space in your kitchen.

It’s important to establish your purpose and goals of a product, even more so with larger, more expensive purchases.

Buying a Garage Door

Same process applies to deciding on a garage door or garage door repair service. Compare your options by setting up a list of needs and wants. When checking the price, if one is dramatically lower than all other options or companies, it probably means it’s too good to be true. Look into why that price is so low and don’t be afraid to ask questions.

Things You Need to Know

  • The Remodeling Cost vs. Value report (www.costvsvalue.com) is based on an annual nationwide survey by Remodeling Magazine.
  • The survey asks Realtors® around the country to estimate the return on investment at resale for specific home remodeling projects.
  • Based on the study, exterior replacement projects are among the most valuable home improvement projects.

A garage door replacement gives homeowners a smart, affordable way to add curb appeal and value to their home.

Project Return on Investment (ROI)
Manufactured Stone Veneer 95.69%
Garage Door Replacement 94.5%
Minor Kitchen Remodel/Mid-Range 77.6%
Siding Replacement/Fiber-cement 77.6%
Siding Replacement/Vinyl 74.6%
Window Replacement/Vinyl 82.3%

*Based on a nationwide average. Complete data from the Remodeling 2020 Cost vs. Value Report can be downloaded at costvsvalue.com.

 REQUEST SERVICE

 


©2020 The Bay Family of Companies.