I previously talked about cost/use and used the example of the Stand-Up Paddleboard that I recently bought, but today I’m going to talk about another example: an expensive flat-screen TV, or a nice stand-up paddleboard.
I personally don’t have a TV, because I quite rarely watch TV or movies, and I wouldn’t even take a TV if someone was giving it away for free. But, other people are really into their home entertainment systems, which I get.
Let’s assume that the TV and a high-end speaker system costs $1000 and it will last for 5 years. Then, let’s assume that cable costs $50/month. The cost for the TV, per year is $800 ($200 for equipment and $50×12). Per month, the cost is $67.
If someone watches an average of 4 hours of TV or movies in a day, that’s 120 hours/month. Then the cost of $67/120= $0.56/ hour of TV watched. Let’s assume that electricity is quite minimal and raises that number to $0.60/hour.
I can think of almost no hobby that is that cheap besides going for a walk (but even then, you need shoes!). 60 cents/hour. And think of all the money that person (or entire family) is not spending by staying at home for 4 hours/day and not going out to movies, or shopping, or eating in restaurants, or driving their car around. Cost/hour can be quite useful in calculating things like the cost of a TV or computer, much more so than perhaps the cost/use model.