Pick one. Which would you choose?
Let me back up and explain how I arrived at this question.
Allergies
My 9 year old Blue Heeler Rosco, has skin allergies. Several times a year, he breaks out with a hot spot and starts licking to beat the band. Next thing we know he’s swollen and bleeding. After a trip to the vet, a bag full of drugs and an itchy dog, we’re out $300-$500. The meds work like a charm, but the itching flares up with little warning so it’s hard to stay on top of it.
After our 2nd infection in 2 weeks, the vet suggested a monthly injection of a drug called Cytopoint. I thought I’d try it. Until I found out that one injection was $285.
I love Rosco, but that’s a lot. It’s a lot for one, but I’d be signing up for monthly shots. That’s $3,420 per year. Rosco is 9 and his breed typically lives til 14 or so, so he may be with us another 5 years. I would have signed up for (3,420 x 5 years = ) $17,100 for allergy prevention.
He’ll still have an annual check-up that costs about $500 and his food is about $40 every 6 weeks, and forget about the treats. It all adds up quite quickly.
But back to the cytopoint. I said no and we’re working through alternatives with his vet.
This process got me thinking about total cost of ownership for a dog.
Pet Cost
About a year ago, I wrote Do I Need Pet Insurance? This post started from an article that I read that said the average pet owner spends $4,800 per year on their pet. I believe it. I have a friend whose dog is on a monthly cytopoint injection. After all my vet visits, food, treats, and pet insurance, I’m not quite at $4,800 but I have a substantial annual bill for Rosco.
So let’s say it’s $4,800 per year just for fun. Not fun if you’re paying it, but fun for today’s post.
Total Cost of Ownership
Back when I used to work, I spent a lot of time talking about total cost of ownership. I built technology products. I needed to demonstrate that the revenue produced (or cost/risk avoidance) was worth not only the initial investment for building the product, but that the accumulated maintenance and enhancement costs over the life of the product, in addition to that initial cost was worth it.
Sometimes I was right, sometimes I missed the boat, but I learned that it’s an important exercise to go through anytime we’re thinking about shelling out some cash.
The $400 to adopt Rosco seemed like a bargain, but let’s look at his total cost of ownership.
We got him as a puppy. We’ll likely have him for a total of 14 years. At $4,800 per year, Rosco will cost us ($4,800 x 14 = ) $67,200.
Oops…add in the initial $400 and it’s $67,600.
BMW?
In 2023, I decided that I deserved something nice so I bought myself a lightly used 2021 BMW 530 I
The 2023 new version was $67,500. I always buy lightly used and the list price for my vehicle with 25,000 miles was $49,000.
Total Cost??
I’ve been lucky. I’ve had no major problems in 2 years and I do a lot of my own maintenance, but the $49,000 is not total cost of ownership.
But, that’s not really the point. The point is that Rosco’s total cost of ownership could be $67,600 over 14 years based on the average cost for a pet owner in the US.
Wow.
That would pay for a new BMW.
Wrap Up
The point is not to run out and trade in your schnauzer for a german luxury sedan.
The point is that we need to think about the total cost of anything we purchase. What are we signing up for?
I was shocked while sitting in the exam room and doing the math on the Cytopoint injection. One injection is pricey, but hey, it’s the dog. He’s like family and he needs it, right? But think about the impact of making this purchase every month for the next 5 years.
Maybe you don’t have a dog. Maybe the $4,800 is overstated. That’s not really the point.
Whether it’s a music or streaming subscription, or a new vehicle, a pet, or a home, what will the total cost of ownership be? How long will you have it, what will you pay in total, will there be additional costs (like pet insurance) that you’ll need to account for?
In the end, the decision to purchase is yours. But be sure to consider all of the financial implications before making that decision.