Devices
Part of Technology purchasing and replacement
Comparing repair costs with replacement: one-period method
Compare a quoted device repair with replacement using complete costs, downtime, remaining support and uncertainty over the same period.
For a diagnosed fault, compare repairing the business device with replacing it with a device that performs the same required task. Choose one period, such as the time until the next planned equipment review, and count costs on the same basis for both routes.
Get a bounded diagnosis
Ask the repairer what failed or likely failed, and request an itemised quote showing the work covered, parts, labour and transport. Ask which parts are available, how long the device will be away, and what cannot be known until it is opened or tested.
A quote for one fault does not promise that no other part will fail. Before authorising paid work, check consumer guarantees under Australian Consumer Law and any warranty. The ACCC educates businesses and consumers, accepts reports and may investigate or take compliance or enforcement action, but does not give legal advice about a particular situation or resolve individual disputes.
Ask how stored business information will be handled during repair, especially if a drive or whole unit may be exchanged; arrange any needed record recovery before a reset or part change.
Steps to Compare Repair with Replacement
- Get an itemised quote showing parts, labour, transport and diagnosticsRequired before authorising repair
- Check consumer guarantees under Australian Consumer Law and warranty termsEnsure repair is legally supported
- Confirm handling of stored business data during repairArrange record recovery prior to reset or part exchange
- Define the comparison period (e.g. until next equipment review or end-of-support date)Use consistent timeframe for both options
- Calculate net cost for each route including downtime and residual valueDo not include original purchase cost in repair total
Calculate both routes over the same period
Choose a period that reflects the work, such as the time until a known software support deadline or the next planned equipment review. Compare the same required task and use the same GST treatment for both routes. Do not include the original purchase cost in the repair total because it has already been incurred.
| Cost or limit | Repair route | Replacement route |
|---|---|---|
| Immediate spend | Diagnosis, parts, labour and transport | Device, required accessories, setup and transfer |
| Work interruption | Repair wait and temporary arrangement | Delivery, configuration and transfer time |
| Continued use | Remaining software support and known faults | Support and service terms for the proposed model |
| Later costs | Plausible follow-up work, marked uncertain | Running and service costs under the offer |
| End of period | Residual value or disposal cost, if supportable | Residual value or disposal cost, if supportable |
For the selected period, repair net cost = diagnosis + parts, labour and transport + repair downtime and any temporary arrangement + plausible follow-up work + disposal cost, or minus supported residual value. Replacement net cost = device + accessories + setup and transfer + replacement downtime + running and service costs + disposal cost, or minus supported residual value.
Enter the actual quote and reasonable estimates for each term, keeping uncertain future repairs separate from firm charges. If downtime has a business cost, describe the interrupted task and use the business's evidence for the estimate; do not count the same interruption in both a temporary-device charge and a staff-time estimate.
Repair vs Replacement Costs Over a Defined Period
- Immediate spend
- Diagnosis, parts, labour and transport
- Work interruption
- Repair wait and temporary arrangement
- Continued use
- Remaining software support and known faults
- Later costs
- Plausible follow-up work, marked uncertain
- End of period
- Residual value or disposal cost, if supportable
Decide what the repair restores
A lower total is the cost-based choice only if that route still completes the required task and remains supported for the comparison period. Repair has the lower cost when its net total is below replacement's; replacement has the lower cost when its net total is below repair's. Equal totals are the break-even point, so downtime, uncertainty and whether each route meets the task requirements matter to the decision.
Repair may be a viable option when the fault is defined, the restored device remains supported and the interruption is manageable. Replacement may be preferable when the repair is uncertain, parts cannot arrive in time, or the device will soon fail a required support or compatibility check.
Record the quotes and dates, comparison period, main uncertainties, decision and approver. After repair or replacement, have the user repeat the interrupted task and complete data handling for any device that leaves the business.
Pros and Cons of Repair vs Replacement
- Repair: ProsLower net cost if fault is defined and device remains supported; minimal disruption if turnaround is fast
- Repair: ConsUncertainty about further failures; potential for extended downtime; parts may not be available
- Replacement: ProsPredictable service life; full support under warranty; better compatibility with current systems
- Replacement: ConsHigher upfront cost; setup and data transfer time; possible disposal challenges
