Samsung made the largest fridge available. I got the $2500 model: stainless steel, no IoT but digital, double doors over drawer freezer. It looked really solid and durable. It failed in so many distinct and interesting ways!
The door shelves constantly shattered, at $50 each. The structure had been compromised by artistic design, with two kinds of plastic joined together. The ice maker died. The main shelves broke a couple times. The temperature display (blue 7-segment numbers) became nonsense. The drawer handle had a hinge made from plastic which broke and non-stainless steel which rusted out. The compressor went out, as we determined by diagnostic codes. The tech sent to fix that ignored us, never checked diagnostic codes, didn't look at the compressor, insisted that our problem was the ice maker (which was indeed broken but not our complaint), charged us $75 for nothing, and fought us when we did a credit card charge-back.
I cut that fridge up with a demolition saw to get it out of my house. This was satisfying.
The replacement is a pair of smaller fridges that were about $400 each. One of them even has old-style wire shelves that seem unlikely to shatter. We've only had two broken shelves so far, in the other one.
Famously, there was a "lemons and cherries" paper on the economics of used cars. I think it also somewhat applies to new goods. There is information asymmetry here. I can't know that the hinges are fragile plastic and non-stainless steel. The fridge looks nice, and it says "stainless steel". I've learned my lesson: do not pay more in an attempt to get quality, because you'll just pay more for the same old junk.
I had a not-so-drastic experience with a high-end samsung fridge: A design flaw where the recirculation fan would accrue ice, and symptoms were that it sounded like a chainsaw every time it turned on, and eventually the fan would freeze over. The only way to "fix" it was to thaw it out every few weeks, and any attempt to replace parts was futile since it was a design flaw, not a mechanical failure.
If the shelf is glass, and the glass is not resistant against wide temperature variations, the glass weakens and eventually will shatter.
My shelves are generally packed with large jugs. For example, on a main shelf I might have 4 gallons of milk and a half dozen half-gallon containers of juice and then more stuff to fill out the remaining space. Door shelves are similarly packed, with the ones in the Samsung being about 12x8 inches and thus big enough for gallons of milk.
The fridge is constantly used by kids. It needs to be mostly restocked every other day.
Glass shattered in one of the $400 fridges. The other $400 fridge is wire. Glass shelves in the Samsung would break around the edge, leaving me with an intact sheet of glass and some broken plastic. Door shelves are always plastic. Samsung snapped white and clear plastic together to make the shelves, with a fragile zig-zag at the joint. I got to wrapping the shelves with string-embedded packing tape before installing them, which increased the typical life from weeks to months.
Give me forged metal grates please, or at least something like rustproof storm drain covers.
Price does communicate some usable information. The problem is that most people naively assume that the more expensive item must be better, while the good items are actually fighting for an informed customer looking for a good cost/benefit. That means that most of the very low price stuff is crap, but also that if the value you can take from an item has a ceiling (limited comfort options, limited maintenance savings, limited "extra durability"), most of the very high price items are also crap.
So, Mr Customer, how do you really feel about our product?
Yeah, definitely satisfying. Well played.
I don't agree. I think you can still buy quality things. The problem is that the market pushed the prices so low for "good enough" products, that it's difficult to justify paying much more. In the case of refrigerators, you'd have to pay at least three times more for a Sub-Zero fridge, for example.
I went looking at high-end oven/range things one day, after having had the Samsung fridge experience. I noticed that underneath the fancy knobs they had the same crappy quarter-inch shafts as the low-end models. Some of the knobs looked like seriously impressive chunks of steel or brass... but that only put more weight and leverage on the standard-sized shafts.
I saw somebody take apart an older iPhone, maybe the 4. The phone had some really nice looking buttons on the side, machined out of stainless steel. Inside the phone it was a very different story: really flimsy crap.
Theoretically, landlords would have the same incentive to purchase the longest lasting things for their rental units. In my experience, both as a renter and someone who designs buildings, the directive is "get the cheapest possible thing that will work".
Sometimes that's because the person paying to build the building is going to sell it once it's rented out, so they won't have to deal with the long term consequences. Sometimes it's just budget restrictions that won't permit the funds to buy the high-quality option. Sometimes it's just short-sightedness. It's rare to meet an owner who truly wants to invest in high quality, long-term solutions.
I'm not going to put a Bosch dishwasher in when someone is going to let their kid sit on the door while it's open, not maintain it properly (cleaning out the drain screen monthly), and so on. Maybe some tenants will, but most do not. I make sure to pay for the extended warranty, and my credit card tops the warranty up some more, because one service call is more expensive (and it's built into the cost of the rent). Something breaks? I file a warranty claim or service call, schedule it with the tenant, and move on with my day. My tenants are entitled to working appliances, not fancy appliances. If those appliances are durable and long lasting, bonus.
This is a great example, and it also has many parallels in—e.g. provision of online services.
The gp isn't wrong, service-providing companies are incentivised to optimise for low waste in certain areas, but it breaks down in other areas like this because service providers aren't optimising for QoS, they're optimising for perceived value.
For example (from the gp's comment):
> if I subscribe to a service to keep my food and beverages at a certain temperature, then the company has the incentive to make the fridge last as long as possible.
This depends. If the company is doing the above by leasing you a fridge you keep in your house and are responsible for maintaining, they getting you the worst fridge and replacing regularly may be better for them (see also ISP routers). Your statement only holds if they're running a large refrigeration warehouse where you keep your food at all times, in which case the logistics get a bit tricky.
The "perceived value" argument gets worse when you have large corporations with multiple offerings outside of their core: here the core competency can lend credence to less optimal/efficient/sustainability-friendly side-offerings.
A fridge service provider might run the hardware longer, but they wouldn't care much about your power bill, nor fridge features - if old phone monopolies, cable boxes and current isp's are any indicator.
And good luck trying to prove to a fridge service provider that their unit has an intermittent thermostat problem...
Recycling might be the responsibility of the company, but they might systematically find the cheapest way to do it without regard to the full externalities of how it's accomplished.
It's a lot easier to hold few companies accountable, than to hold millions of consumers accountable.
> And good luck trying to prove to a fridge service provider that their unit has an intermittent thermostat problem...
That's also a problem when you buy a product.
> but they wouldn't care much about your power bill, nor fridge features
I suppose the market will do its job. Cost of ownership is transparent (monthly fee plus power use), so consumers can easily choose, and they can easily switch.
> It sounds like a nightmare to me.
I'm already having nightmares about the environment right now.
If you think modern refrigerators are wasteful I'd ask you to prove it. The design choices they make are manufacturing trade offs—not simply cutting corners to make it break. A refrigerator might only last 10 years, but its a net gain if it cost 1/10 the energy to build, uses 50% of the power, never leaks refrigerant and uses a small ammount.
The model being peddled on TV/radio/etc isn't "Rent a fridge." is it?
This is just another "language war". The airwaves and communications channels are monopolized by discourse that protects the known way of doing business. It's not a law of physics it be that way.
"Our fridges are more power efficient!"
"Ours have advanced health monitoring!"
"We have the greenest recycling program!"
What we are missing today is meaningful competition. You can’t buy an appliance that isn’t a piece of garbage because we have a financial environment that encourages consolidation above all else. There’s only a few companies making anything, so there is no incentive to use quality as a differentiator.
I first started become aware of this when I started having trouble finding shoes. In many categories, all shoes are made by one manufacturer, often in one factory in Guangdong.
After going through 3 washing machines in 9 years, i bought a Speed Queen commercial washer without a cashbox. It is not very pretty, and cost $50 more than the mid-range residential washer that it replaced, has a 5 year warranty, and an expected life of 10-15 years.
This is true for most categories of consumer products. Appliances, shoes, pants, furniture, etc.
The problem is optimization as energy efficiency and lifespan for example are often at odds. Further you can measure energy efficiency much easier than lifespan so the incentives get out of whack from what consumers want in favor of what they can measure.
We probably spend exponentially more energy manufacturing, distributing and delivering new appliances that fail due to pointless efficiency engineering than we shave off.
You already have something very close to this with home warranties and the providers tend to be awful in my experience. The goal is just to extract money from you and keep costs down.
Sure, as long as you assume higher power consumption doesn't increase the cost of operating the fridge.
If you're not willing to assume that, then "regardless of power consumption" doesn't make a lot of sense.
While this mentality definitely exists, this doesn't account for brand and a wish to protect reputation. Hence why personally I tend to stick with established companies for things like trades as in the absence of a personal relationship, knowing someone has a brand to protect (and history against it) improves my chance of receiving a quality good/service
While the preservation of a brand might be rational for a corporation as a whole, it might be somewhat easy for executives that are paid quarterly and annual bonuses to temporarily goose profits by sacrificing long term reliability and brand (which only shows up with a long lag time, years down the road), then take their bonuses from investors before going somewhere else.
This theory of 'looting' by executives might leave both customers and long-term investors worse off, but is caused by the inability of customers and investors to perfectly incentivize (or monitor) long-term decisionmaking.
You just described a grocery store...
They keep food and beverages at certain temperatures. When you are ready to consume that food or beverage, you can pick it up (or have it delivered). And best of all, you pay no subscription fee :) But in reality, that's not practical. Most families eat 3 meals a day, and consume multiple glasses of some drink a day. To make a trip to the grocery store (or fridge depot subscription place) every time you want to eat or have a cold drink is not practical (and increases environmental pollutants). So maybe you want to go once a day, you'll still need some device at home to keep your groceries and drinks cold until you want to consume, some device like a fridge :p
If you found a solution, that'd be great. But you'd probably just be a food delivery startup with some fancy marketing lingo. And we have plenty of those already.
The Prime-Member-only prices appearing at my local Whole Foods suggest that this may be increasingly untrue in the future.
Fixed :)
Fridge?
And I have three actually. One runs on propane, one standard power and one is a deep freeze, like what one would put in a garage.
All were cheap, all work well, all take modest to very liw resources to run.
The gas powered one works no matter what. That has saved me a time or two when there was no power. I may well get another. It is insane cheap to use.
Anyone selling me something that is planned to break gets the following:
Added to avoid list.
The product gets hacked wher it is posdible to untether it and or remedy the failure.
I tell others.
Now I realize all of that is contrary and toxic to many business models today. I rarely buy new.
I grew up poor, and had time which I invested in skills. Those have paid me off many, many times over.
I also think maximizing what has been produced makes good jobs, is better, with some qualifiers, for the environment, increases personal agency, lowers personal risk and cost.
Among many other good things.
Service models can make sense. For many basics, they just do not make sense.
I would much prefer we distribute repair, support modifications, upgrades and such across many enterprises as we used to do.
TV's were a good example. I grew up learning to repair them. Used to do it for date money. Offered in home service too.
Cars remain a good example. John Deere is the other extreme.
A blanket, "this way is good" makes little sense to me.
Would much rather have many local relationships than the same with big enterprises. More options, and if I do work, I get the immediate returns of lowered cost and risk.
I think component complication for planned obsolescence is much more of a thing than programming something in X years to kill itself.
There are things that I would like to buy for life. Kitchenwares, Desk, etc. There are things that are consumable and may be being a services would be better.
The world already has made a Subscription model for an Expensive and long last fridge and that is called installment plan.
Now, the one place a company with a fleet of fridges could really do the world good would be maintenance & repair. When you've got all your own repair crew on the payroll and you operate one kind of fridge, those costs plummet.
They will happily externalize as many costs as possible as well. Your electric bill is high? Oops, guess you should have negotiated that in the contract. Five hundred dollars of fresh groceries went bad because we gave you a shoddy refurb? We'll have a new unit out to you tomorrow, good luck with the rest.
Yes, so the market will ensure that this kind of company will prevail.
Here's another, more complicated problem: even if the math proves that, say, over a long enough horizon, you'll make more money with the longer-lived, repairable version of the product, that isn't necessarily the best way to maximize returns for shareholders/owners. If that concern overrides all others, then you may well be better off maximizing profits short-term, through any (hopefully legal!) means possible regardless of the effect on the long-term viability of the business, and investing them in other markets with higher returns.
You can't buy a residential clothes washer designed to last longer than five years; laundromats won't tolerate that; solution, pretend Home Depot doesn't exist and buy a Speed Queen that your kids can probably inherit.
An interesting side effect is residential / contractors special type stuff has a very low initial cost of purchase but overall lifetime cost is always lower for commercial grade stuff; this makes sense, if it was cheaper to buy residential garbage the beancounters would force it to officially be commercial...
They also have an incentive to make it last a long time so you're a loyal customer. Loyalty is extremely important if you only purchase a half dozen of something your entire life. Guess which incentive is stronger?
As a corollary, there is a big difference between being incentivized to do something and simply not being incentivized to do the opposite. The average full-size refrigerator lifespan is 17 years. The fact that Maytag doesn't spend millions of dollars developing a fridge that can last 30 years doesn't mean they're incentivized to make a shitty fridge, it just means people don't care enough about years 18-30 that they're willing to pay what it would cost to get that fridge.
Only if they don't have competitor for your business with a reputation for longer-lasting fridges that are otherwise of similar utility.
Planned obsolescence should be illegal
Is there a clear line between planned obsolescence and just making a cheap, low-quality product?Legislation against this practice isn't unheard of, there are fines and jail time for it in France.
My guess is that Apple will simply claim that they can't make the phone as small/thin when the battery has to be replaceable.
iPhone users either get the battery replaced, sell the phone, or they trade the phone in. The trade in then gets sold again, and likely again after that. The iPhones resale value makes sure it is a long time before any are simply thrown in the trash.
These recycled phones either end up as refurbished phones in other markets, or are taken apart by their special robots down to the individual pieces, which are then recycled themselves.
A responsible tax system could accomplish the same without causing people to pay 100x the value of a good product over their lifetime.
So I disagree with your premise based on the example you gave. I would say it would be fine with items you only keep a few years and not long term appliances. I really do not think it encourages them to create units that fail because many companies still want their reputation to be built upon longevity. Simply put, the sales volumes are already great enough to not require shenanigans like what you suggest
History shows otherwise:
And another line item on your revolving monthly expenses.
People need to own, people need to be reaponsible with their decisions, and to think a business or corporation can do it better is dangerous.
For example, take a fridge. If I buy a fridge, the company I buy it from has an incentive to make it break in N years, so they can sell me a new one, i.e. "planned obsolescence".
However, if I subscribe to a communistic society to keep my food and beverages at a certain temperature, then this society has the incentive to make the fridge last as long as possible.
EDIT: Besides eliminating planned obsolescence, there are more advantages:
- Increased market transparency. The market is more transparent if I know exactly what a 4 years planned product costs me per month, as opposed to buying a product and not knowing when it will fail. A more planned society leads to better resource distribution.
- Another advantage is that the whole life-cycle of the product, including recycling it, becomes a natural responsibility of one society.
For example, take a fridge. If I buy a fridge, the company I buy it from has an incentive to make it break in N years, so they can sell me a new one, i.e. "planned obsolescence".
However, if I subscribe to a service to keep my food and beverages at a certain temperature, then the company has the incentive to make the fridge last as long as possible.
EDIT: Besides eliminating planned obsolescence, there are more advantages:
- Increased market transparency. The market is more transparent if I know exactly what a service costs me per month, as opposed to buying a product and not knowing when it will fail. A more transparent market leads to better competition.
- Another advantage is that the whole life-cycle of the product, including recycling it, becomes a natural responsibility of the company.