Why do appliance repairs (dishwasher, laundry, fridge, etc.) seemingly cost as much as the appliances themselves?

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Why do appliance repairs (dishwasher, laundry, fridge, etc.) seemingly cost as much as the appliances themselves?

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Anonymous 0 Comments

The individual parts are quite cheap to make. It’s the overhead cost of giving each $5 repair part its own SKU in multiple systems and then the handling and shipping of those individual parts all over the country. Inventory at retail shops costs money in storage and taxes as well. Also it’s a bit of a profit center because repair laws say companies have to offer parts… they don’t say how much for.

There’s a reason all of Apple’s little “$2” accessories all cost $20 in store. At Apple Store’s low volumes it probably costs $10 just to pick up something and give it a UPC, ship it all over, a space on a shelf, and pay someone to keep it stocked, pay for a sales person to ring you up, credit card fees, etc, etc. there’s also a nice profit margin in there too because it’s got their logo in it.

There’s a reason Walmart and Amazon completely squash everything else… because they have those “handling” costs down to the barest minimum possible using advanced IT systems. Your local appliance parts store is probably using manual Excel sheets for inventory still.

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