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How to escape the sunk cost trap
Format: Pre-call and post-call
Runtime: ~8 minutes
Source: Behavioral economics , sunk cost fallacy, loss aversion (Kahneman and Tversky)
Before I tell you about this call I want to tell you about a truck I drove for eleven years.
It was a good truck early on. Solid. By year nine it had 240,000 miles on it and I'd put in two engines, a transmission, and more in parts and labor than the truck was worth. My wife asked me why I kept fixing it.
I told her it was because I'd put so much into it I couldn't afford to walk away now.
She said: Dave, that's not a reason. That's the reason people throw good money after bad.
She was right. I drove it another two years anyway.
He called because the system had stopped cooling. When I got there I knew from the driveway what I was dealing with. The outdoor unit was from 2001. Original install. Twenty-three years old. Compressor seizing, the refrigerant had been running low for years based on the oil staining on the lines, and when I pulled the panels the capacitor was shot and the contactor looked like it had been replaced at some point with a part that was one step below spec.
I ran my checks. The compressor was pulling amp draw so far outside its rating it wasn't a question. The system was gone.
I came back inside and told him straight. I said: this compressor is done. There's nothing I can do to repair this that would give you a reliable system. The right answer here is replacement.
He got quiet. Then he said: I put twelve hundred dollars into that unit three years ago.
I've heard this before. The dollar figure changes but the sentence is always the same. The money that's already gone is the first thing they think about.
What he wasn't saying , what he didn't know he was saying , is that the twelve hundred dollars he'd already spent felt like a vote for the system. A down payment on its future. And replacement meant accepting that the down payment was gone and the thing it bought wasn't coming through.
Give Us A Shout
Thanks for tuning in to Hartzell's Heat & Air, your trusted HVAC experts in Oklahoma and beyond. From Kingfisher to coast-to-coast consulting, we design, install, and maintain smart, efficient systems that deliver year-round comfort.
We're employee-owned, family-run, and powered by 45+ years of experience. Whether it's AI-powered thermostats, geothermal systems, or classic tune-ups, we deliver upfront pricing, expert care, and warranties that back it all up.
🛠️ Book Online:
https://book.housecallpro.com/book/Hartzells-Heat--Air/4a569038b3dc460daf2d5f6497b18351?v2=true
🌐 www.hartzellsheatair.com
📞 (405) 375-4822
🚛 Trane Comfort Specialist • Mitsubishi Diamond Dealer • ClimateMaster Elite
🛡️ VIP Comfort Club • Remote Monitoring • Extended Warranties
📲 Follow us for tips, updates, and real-world installs:
YouTube: @hartzellsheatair6003
X: https://x.com/HartzellsHVAC
Facebook: facebook.com/hartzellsheatair
LinkedIn: Dave Hartzell
Built on trust. Backed by warranty. Designed for comfort.
View all episodes
By Dave Hartzell's Heat & Air - Kingfisher,OKFormat: Pre-call and post-call
Runtime: ~8 minutes
Source: Behavioral economics , sunk cost fallacy, loss aversion (Kahneman and Tversky)
Before I tell you about this call I want to tell you about a truck I drove for eleven years.
It was a good truck early on. Solid. By year nine it had 240,000 miles on it and I'd put in two engines, a transmission, and more in parts and labor than the truck was worth. My wife asked me why I kept fixing it.
I told her it was because I'd put so much into it I couldn't afford to walk away now.
She said: Dave, that's not a reason. That's the reason people throw good money after bad.
She was right. I drove it another two years anyway.
He called because the system had stopped cooling. When I got there I knew from the driveway what I was dealing with. The outdoor unit was from 2001. Original install. Twenty-three years old. Compressor seizing, the refrigerant had been running low for years based on the oil staining on the lines, and when I pulled the panels the capacitor was shot and the contactor looked like it had been replaced at some point with a part that was one step below spec.
I ran my checks. The compressor was pulling amp draw so far outside its rating it wasn't a question. The system was gone.
I came back inside and told him straight. I said: this compressor is done. There's nothing I can do to repair this that would give you a reliable system. The right answer here is replacement.
He got quiet. Then he said: I put twelve hundred dollars into that unit three years ago.
I've heard this before. The dollar figure changes but the sentence is always the same. The money that's already gone is the first thing they think about.
What he wasn't saying , what he didn't know he was saying , is that the twelve hundred dollars he'd already spent felt like a vote for the system. A down payment on its future. And replacement meant accepting that the down payment was gone and the thing it bought wasn't coming through.
Give Us A Shout
Thanks for tuning in to Hartzell's Heat & Air, your trusted HVAC experts in Oklahoma and beyond. From Kingfisher to coast-to-coast consulting, we design, install, and maintain smart, efficient systems that deliver year-round comfort.
We're employee-owned, family-run, and powered by 45+ years of experience. Whether it's AI-powered thermostats, geothermal systems, or classic tune-ups, we deliver upfront pricing, expert care, and warranties that back it all up.
🛠️ Book Online:
https://book.housecallpro.com/book/Hartzells-Heat--Air/4a569038b3dc460daf2d5f6497b18351?v2=true
🌐 www.hartzellsheatair.com
📞 (405) 375-4822
🚛 Trane Comfort Specialist • Mitsubishi Diamond Dealer • ClimateMaster Elite
🛡️ VIP Comfort Club • Remote Monitoring • Extended Warranties
📲 Follow us for tips, updates, and real-world installs:
YouTube: @hartzellsheatair6003
X: https://x.com/HartzellsHVAC
Facebook: facebook.com/hartzellsheatair
LinkedIn: Dave Hartzell
Built on trust. Backed by warranty. Designed for comfort.