Pimp Your Finances

It’s easy to compare two similar products, but what if you’re comparing apples and oranges?  I’ve considered switching from disposable razors to an electric, but the frugalist in me insists on figuring out which is a better value. 

I’m going to detail how I compare two related, but different products.  Not because smart razor choices will make me rich, but because using a logical approach to compare products will save me money.

It’s like the example of throwing a pebble into a pond.  It won’t make much of a ripple by itself, but if you fill a bag with pebbles and drop them in, you’ll make a big splash.  By consistently making smart choices and buying high value products and services, you can save thousands of dollars over the course of your life.

Consider the true value of something, not just the initial cost

I put off buying an electric razor because of the upfront cost.  I didn’t want to pay $50-$200 for something that only costs me a couple dollars every few weeks.  Then I realized that over time, the cost of disposables will add up, and may actually be more than the electric. 

Because the upfront cost isn’t a fair analysis, I need a better way to compare.

When comparing products, make sure to find a common denominator

I can’t use cost alone, so I decided to calculate the cost of ownership over time.  I’m going to figure out how long an electric razor lasts, then figure out the cost of using each for that long.  Now that I have my criteria, I need to gather the details. 

To make sure you do a fair comparison, you need to…

Do your research first – including price comparison

There are a ton of disposable razors available.  I use the Gillette Mock 3.

I did some price checking, and found that Target has a good price on the Mock 3 razor starter (with two blade cartridges) at $7.44.  For refill cartridges, I found that BJ’s Wholesale has the best deal at 20 blades for $34.99.

It’s a little harder to choose electric razors.  There are two distinct styles (foil or rotary), and a variety of qualities and prices.  I decided to go to Consumer Reports to guide my decision.  In 2008, they recommended the Braun 360 Complete as the best electric razor, at a cost of $164.99.

Now that I’ve chosen my products, I can make sure to…

Include all variables – like ongoing maintenance costs

With disposable razors, you need to replace the blades.  I find that one blade normally lasts two weeks.  I don’t use any foam/gel, because it doesn’t seem to help me.

With the electric, you have to buy cleaning supplies as well as replacement foils and cutters.  The cleaning cartridges cost $14.99 for a pack of three, and each lasts a month.  The foil and cutter need to be replaced every 18 months, at a cost of $35.98.

From the reviews I’ve read, it seems like the Braun 360 should last at least 3 years, so that’s what I’ll use for my calculations.

After you’ve considered all the ongoing costs, you can…

Do the Math

Cost to buy disposable razors for three years:

• Initial cost: $7.44 (with two cartridges)
• Replacement cartridges: 20 for $34.99
• Number of cartridges needed over three years: 78
• Total cost: $147.40

Cost to maintain electric razor for three years:

• Initial cost: $164.99
• Cost of cleaning supplies for three years: $179.88 (ouch!)
• Cost of replacement foil and cutter: $35.98
• Total cost: $380.85

After you know the costs, make sure to…

Consider the intangibles

Disposables are cheaper and offer a closer shave, but they lack the safety and convenience of electrics.  I find that with disposables, I shave every other day or so.  If I had an electric, I’m guessing I’d be motivated to shave every day, and cut myself less too.  That being said, having a continuously close shave isn’t a priority for me, so the extra cost isn’t justified.

Now that you have all the factors, you can…

Come to a decision

The Braun 360 may be more convenient, but it costs 2.5 times as much as disposables.  To me, it’s not worth it.  Even it lasted six years, it would still cost 2.3 times more.  I’ll stick with disposables.

Conclusion

I know that this is a ridiculously detailed analysis about something as trivial as razors, but it goes to show that using a methodical approach when comparing products can save a lot of money.  By using the approach described above, you can save small amounts on a daily basis, as well as thousands when choosing bigger products like cars, housing, or loans.