16: The Influence of Durability on Price

In the previous chapter, perishability was briefly mentioned (a seller of ice must unload his goods before they melt, and must panic if buyers reject his price) - but durability is a separate issue: it is the amount of time a good can be in use, rather than being stored for future use.

Many items are consumed by their use: a match, an article of food, or a cigar is destroyed and cannot be used a second time. Services are all perishable items as well. Some items have use that varies - a pencil will eventually be sharpened to a nub, shoes and clothing can be worn multiple times but will eventually be damaged by use, and even a house will cease to be functional. A few articles are largely permanent: a gemstone ring can last for centuries and be passed from one generation to the next.

Durability does not always account for fragility, as an item might be broken and might be prone to breaking. A person who purchases a mirror or a decorative vase recognizes the item is easily broken, but generally does not take accidents into account when estimating the durability of items.

Another variable regarding durability is maintenance and refurbishment. Just as a horse that is not fed will not live as long as expected, so will a huge that is not greased have a much shorter lifespan than expected. And while the cloth of a sofa may wear out over time, it may be reupholstered to restore its functionality, so its durability maybe expended.

He then gives a list of metals (copper, gold, iron, lead, silver, and tin) and considers how they will wear out over time - through malleability, rust, the wearing away of surfaces, and the like, all of which is a bit tedious and unnecessary.

Since durability of an article describes how long it will be used without needing replacement, buyers will generally offer more for durable items, as an item that will last six years is three times as valuable as one that wears out in two, but they will purchase them less frequently as a result.