Friday, October 24, 2008

The Economics of Diapers

Most people think of Number 1 or Number 2 when changing a diaper. For myself, the Number 19 comes to mind and is especially relevant. That’s $34.99 divided by 184 diapers which of course equals 19 cents. This is the price-per-diaper of the Kirkland brand "secure fit" nappies which we purchase at Costco. Diapers quickly become the staple product purchased by new parents and the economics of that purchase can become a key factor of your budget.

It takes four years to get a college degree but becoming an expert at changing diapers takes only one day – that would be your first day of doing it! The reason is that you are doing it so much. And, since you are changing in quantity, purchasing in quantity also makes sense. Purchasing a pack of 66 diapers for instance will result in a cost-per-diaper of around 26 cents. Pennies you say? More important things to concern yourself with you suggest? Let’s use the assumption that baby is soiling up to 8 diapers a day (new parents know that there are days you WISH 8 diapers was all that was needed), but we will go with this assumption as an average. Saving 7 cents per diaper results in an additional 56 cents a day, 17 dollars per month, and 204 dollars per year in the home budget. The discussion moves beyond pennies quickly doesn’t it? When you finally find the time and energy to go out to a restaurant, diaper savings can fund that excursion. Or, if the will is there but energy is not, take out or delivery becomes a viable option with these type of savings.

I know that a rebuttal to the case stated above can quickly be made by bringing into the discussion preferred brands of diapers and their "performance". We will address that factor and the great Pampers versus Huggies debate in the next post.
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