A Friday Ramble…

Here's an investment analysis for you**:

Say, for example, you spend thousands of dollars on a new, shiny, massive computer. You get:

• the ability to order over the telephone, after spending time conveniently reading reviews and browsing through your options online;
• convenient delivery to your doorstep;
• great speed, storage and it looks really cool… and, arguably, a little bit monstrous on your desk at home (apparently bigger is better with these things);
• a lovely big, clear screen to view photos, episodes of television programs, and a really really big, clear image of Jeremy Clarkson's face;
• a significant thrill when you receive the goods;
• a massive box to get rid of along with the oodles of packaging;
• ongoing excitement each time (at least for about 6-12 months) you look at the thing;
• the ability to rave to a select group of fellow computer/technology-loving friends and family members;
• compliments and envy from your friends (but you will have to invite them over for "new computer viewings", which might be perceived as being a bit strange;
• confidence in the thing itself - it will not fail you (in the short term);
  a decline, over time, in currency of the technology in the thing (I believe you need to replace such a thing every 5 years or so);
• little re-sale value because by the time you want to upgrade, everyone else has likely moved on and the price you paid for your computer 5 years ago is what you can pay for the much better model; and
• maintenance costs for failure in technology may come into play, but probably not until the later years of ownership.

In summary, whilst this purchase will bring you short-term rewards, the future of your computer is dim. It will likely end up on a large "old, useless, replaced computer" heap at a local transfer station… or in some dusty old shop with a lame and embarrassing price tag. This is a short-term investment in a product that will date.

Now, please tell me what the difference is if I decide to buy a really gorgeous handbag? A Chloe, Balenciaga, or Gucci? Chanel perhaps? Let's work with a Chanel… just for arguments sake.

So, you happen to spend those same thousand dollars on a lovely, gorgeous new classic Chanel. You get:

• the ability to order via the Internet, but the shopping experience is not a hassle so it doesn't really bother you if you have to go into Chanel;
• the ability to peruse your divine options in several mediums. The reviews will likely be pleasing and interesting to read. They will likely be shorter and certainly more colourful;
• storage of choice, along with added sophistication, style and the absolute pleasure of sporting such a wonderful accessory… in public. You don’t need to invite your friends over to your house for them to share with you their envy and/or adoration;
• long-lasting luxury with good on-sale value as such a purchase will stand the test of fashion-time becoming a vintage staple to any woman's wardrobe;
• timeless sophistication;
• the best quality of textiles. Wonderful textures;
• multiple use with very little maintenance over time, although you will need to look after it (but as if you wouldn't!);
• confidence in your product and confidence in yourself… because you just look rather divine with that Chanel over your shoulder (or, in the snug of your inner elbow on display from the front);
• practicality. Essential, daily items travel with you at all times during the day. You will always be able to find what you need, when you need it;
• the ability to trade your Chanel for something new should you, God forbid, get tired of your choice. Re-sale value on eBay, for example, is strong;
  an investment with ongoing value. And should you have been fortunate enough to acquire a limited edition, the value will likely increase; and
• no concern about the classic handbag being outdated as these beauties do not lose their appeal. For example, Madame Virtue in Melbourne has a lovely range of vintage Chanel accessories and they have held their value tremendously. You will not find a Chanel handbag in a dusty old shop with an embarrassing price tag. But if you do you should contain your excitement, purchase the thing and briskly leave the shop knowing you have just secured yourself the bargain of a lifetime. If you come to be a Chanel owner in this way, the benefits described in this list will bring a return on investment of at least 10-fold.

On balance, it seems, the Chanel wins. The computer will die on you, let you down and need replacing with no real increase in worth over the years. The Chanel will continue to please you, with good on-sale prospects at a held-in-time price (at least)… that is, of course, should you even wish to replace or sell it!

**This theory likely applies just as relevantly to purchases of most technological items compared to most designer items.