Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Friday, December 18, 2009

Chair economy

How can anyone justify buying a $750 chair when you can get one for $100? Style and prestige may play into it but neither are a reason your accountant will approve so let's look at the return on investment. The $100 chair will likely last for 2-3 years before it's worn out or broken. The $750 chair comes with a 12 year warranty and will likely last 15 years or more. As a result, the cheap chair costs $33-50 per year and the top of the line chair costs about $50 per year. Is it worth a couple extra dollars a year to sit on the best?

To a software developer, a chair is the 2nd most important tool for their job. The most important, a computer (with software) will cost a company at least $500/year, ten times the cost of the chair. Put another way, the best chair will only cost 3 cents an hour. All of a sudden it sounds like a deal.

The numbers show a great chair is not much more expensive, in the long run, then a cheap chair but what are the benefits for the company buying expensive chairs?

1) Improved Morale - Having a nice work environment makes everyone feel better about their job
2) Better Health - An ergonomic chair can make all the difference for anyone with back problems
3) Less hassle - A cheap chair will need to be replaced 5 times for each top quality chair
4) Recruitment Edge - A great work environment will help attract the cream of the crop
5) Increased Productivity - In a "scientific study" Steelcase found a top quality chair will improve productivity by 17.8% due to more focus and less fidgeting. Even if you only see a 10% improvement the chair would pay for itself in no time.

Now you can go back through my chair reviews and pick out the one that's just right for you.