13 March 2009

Cost-Per-Wear



I guess all those years working in advertising have so deeply ingrained in me how to look at cost-effectiveness that I'd carried it over to my personal life.

One way to measure advertising effectiveness in terms of cost is to look at its CPM (or cost-per-thousand). CPM is defined as "The cost, per 1000 people reached, of buying advertising space in a given media vehicle."

Now, whenever I buy something, I simply look at cost-per-Wear/Use. I'd justify buying a more expensive piece of item by telling myself that I'd get a better cost-per-use out of it. Over the years, I've noticed that I generally have gotten less use of the not-so-expensive stuff that I'd impulsively bought. The more expensive items (generally of higher quality) would last me longer and I'd be wearing them more often. So, in essence, if I divided up the cost of the item against the number of times I'd used it, the more expensive items actually come out cheaper overall!

Here, in table format, is an example of what I mean:



So, in this case, Item 2, while being more expensive from the outset, turns out to be the wiser choice if you look at it long-term. Item 2 turns out to be more the better choice as it is more cost-effective. (Of course, this is assuming that you'll really wear it as often as you think you will!)

2 COMMENTS:

Jacqueline Renee said...

You so sound like you are justifying a recent purchase :P
Go on, spill the beans, what was it??

Buckeroo said...

It IS how I generally justify my purchases. :)

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