Appliances Are Cheaper Than Ever—So Why Is Appliance Repair Getting More Expensive?

Section 1: Appliance Pricing Trends Over the Last 30 Years
Appliance Pricing Trends

General Pricing Trend

Over the past 30 years, nominal prices for major household appliances have remained stable or slightly decreased, especially when adjusted for inflation. For example, major appliance prices in 2025 are roughly 30% lower in real terms compared to 1995, declining from about $1,200 to approximately $800 in inflation-adjusted dollars. This trend has been driven by a combination of manufacturing efficiencies, global competition, and technological advancements, allowing manufacturers to maintain or even lower prices while improving product features and energy efficiency.

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for household appliances has remained flat or declined in real terms, even as the overall cost of living has risen by 80-100% over the same period [BLS, 2025]. As a result, consumers today are paying far less for appliances relative to their purchasing power compared to 30 years ago.

Breakdown by Appliance Type

Refrigerators

Nominal price trend: Prices have increased slightly (~$600 in 1995 to ~$800 in 2025).
Inflation-adjusted trend: Prices have dropped significantly.
Factors: Efficiency standards, improved compressor technology, and increased competition from imported brands have kept prices down.

Washing Machines

Nominal price trend: Slight increase (~$450 in 1995 to ~$700 in 2025).
Inflation-adjusted trend: Prices have dropped, especially with front-load washer technology improving efficiency.
Factors: The entry of Samsung and LG into the U.S. market created price competition, particularly in the early 2000s.

Dryers

Nominal price trend: Little change (~$400 in 1995 to ~$650 in 2025).
Inflation-adjusted trend: A significant real price decrease.
Factors: Increased automation in production and component standardization.

Dishwashers

Nominal price trend: Minimal increase (~$450 in 1995 to ~$650 in 2025).
Inflation-adjusted trend: Prices have nearly halved in real terms.
Factors: Strong price competition and efficiency regulations pushing manufacturers to innovate at lower costs.

Ranges, Ovens, and Cooktops

Nominal price trend: Modest increase (~$700 in 1995 to ~$1,000 in 2025).
Inflation-adjusted trend: Prices have remained stable or decreased slightly.
Factors: Improved efficiency and steady demand preventing major price hikes.

Breakdown by Major Manufacturers

Whirlpool (Whirlpool, Maytag, KitchenAid, Amana)

Maintained competitive pricing by streamlining production and acquiring brands.
Supported U.S. tariffs on foreign washers, which temporarily raised prices by ~12% in 2018 [Whirlpool, 2018].

Electrolux (Frigidaire)

Focuses on affordability; Frigidaire undercuts competitors in standard appliances.
Attempted but failed acquisition of GE in 2014 led to more aggressive pricing strategies.

GE Appliances (Owned by Haier)

Shifted production strategies to reduce costs and maintain competitive pricing.
Introduced financing and bundling deals to encourage new purchases over repairs.

Samsung & LG

Entered the U.S. market in the 2000s and disrupted pricing trends by offering feature-rich products at competitive prices.
Introduced price wars in laundry and refrigeration, forcing legacy brands to hold pricing steady.

Speed Queen

Unlike other brands, Speed Queen increased prices significantly, focusing on durability and commercial-grade appliances.
Higher upfront costs but appeals to a niche market valuing long-term reliability.

Section 2: The Rising Cost of Running an Appliance Repair Business

Over the past three decades, while the nominal prices of major household appliances have remained relatively stable or even decreased when adjusted for inflation, the operational costs of running an appliance repair business have risen significantly. This divergence contributes to the increasing costs of appliance repair services.

Breakdown of Appliance Repair Business Operating Costs

Labor Costs Hourly wages for appliance repair technicians have increased significantly, rising from approximately $12.50 per hour in 1995 to about $28.50 per hour in 2025. This increase reflects higher demand for skilled labor, driven by the complexity of modern appliance technologies and a shortage of qualified repair technicians in the market.
Service Vehicle Expenses The costs associated with maintaining service vehicles have risen due to higher fuel prices, increased insurance premiums, and more expensive vehicle maintenance. For instance, fuel costs have surged from an average of $1.15 per gallon in 1995 to over $3.50 per gallon in 2025, significantly impacting operational expenses.
Office and Administrative Overhead Expenses related to office rent, utilities, and administrative functions have also seen substantial increases. The adoption of advanced scheduling and customer management software, while improving efficiency, adds to the overall operational costs. Additionally, marketing and advertising expenditures have grown as businesses strive to maintain competitiveness in a crowded market.
Parts and Tools The complexity of modern appliances necessitates the use of specialized tools and a broader inventory of parts. This requirement leads to higher upfront investments and ongoing costs for businesses to keep pace with technological advancements.
Insurance and Compliance Enhanced regulatory requirements and a litigious business environment have driven up insurance premiums and compliance-related expenses. Businesses now allocate more resources to ensure adherence to safety standards and legal obligations, further contributing to operational costs.

Section 3: Challenges for Appliance Repair Operations

1. The Impact of Lower Appliance Costs on Repair Decisions

As appliances have become more affordable over the past three decades, consumer behavior around repairs has shifted significantly. With new appliance prices consistently dropping in real terms, many homeowners now find it financially simpler—and sometimes cheaper—to replace appliances rather than repair them, especially when repair costs approach 50% of the appliance’s purchase price.

This price dynamic poses challenges for appliance repair businesses, compelling them to clearly communicate the value and longevity benefits of quality repairs versus short-term savings of replacement. To stay competitive, service providers must demonstrate that repairing an appliance can often be a more sustainable, environmentally friendly, and cost-effective solution over the long run, particularly for higher-quality or premium appliances.

2. Repair vs. Replacement: Adapting Business Models

The real cost of appliances has shifted consumer behavior toward replacement rather than repair, particularly for lower-cost and mid-tier appliances. For higher-end and specialty appliances, repairs remain economically viable due to the significant cost of replacements.

3. Influence of Manufacturers and Retailers

Retailers increasingly encourage replacement through financing plans, bundled deals, and aggressive marketing tactics. Manufacturers have shifted warranty policies, often extending their warranty coverage beyond the first year to capture more work for their authorized networks and preventing customers from shopping for an alternative.

4. Identified Growth Opportunities

Appliance repair businesses can find sustained success by targeting:

Partner with Appliance Insurance Providers and Manufacturers:
Collaborate with providers who offer direct repair contracts or extended warranties, ensuring consistent authorized repair jobs.

Focus on High-End and Luxury Appliance Repairs:
Specialize in servicing premium appliances, as replacement costs remain high, keeping repairs economically attractive to consumers.

Expand into Commercial and Industrial Appliance Repairs:
Develop relationships with commercial and industrial clients who value reliable, prompt appliance service, creating stable, recurring business opportunities.

Establish Partnerships with Appliance Retailers:
Develop mutually beneficial referral relationships with local appliance retailers. Earning even a modest commission (e.g., 5%) from referrals is better than losing customers completely to appliance replacement.

Offer a Concierge-Style Customer Experience:
Provide holistic support that extends beyond direct repairs. Offer advice on appliance selection, DIY troubleshooting, and guidance on repair versus replacement. Customers value and seek this type of consultative approach, increasing their loyalty and likelihood of repeat engagement.

Expand Services to Include Related Homeowner Needs:
Broaden your offerings to include complementary services such as HVAC maintenance, plumbing, or electrical work. Homeowners prefer the convenience of dealing with a single trusted service provider, increasing their likelihood of contacting you first for any household issue.

5. Tariffs in 2025

How much will the recent tariffs affect this situation? It’s too early to tell in March of 2025, but we’ll source from 2 appliance buying groups and share what their thoughts are so far on this situation.

Nationwide Marketing Group – 2025 Tariff Update: Who is Impacted?

BrandSource – The Lowdown on Higher Appliance Prices

We’ll look to continue to update this article as we observe the tariff impact (if any) over time.
We would love to see appliance pricing go up…

Conclusion

Appliance prices have become significantly more affordable in real terms over the last 30 years.

Appliance repair businesses can thrive by partnering with insurance providers and manufacturers, focusing on high-end appliance repairs, offering comprehensive homeowner solutions, and providing concierge-style services that go beyond traditional repairs.

The future of appliance repair is not about survival, but adaptation—those who innovate and adjust their business models will continue to find success in a shifting marketplace.

Not sure how to adapt? Schedule a chat today.

References

Sources for CPI Trends Chart

Bureau of Labor Statistics. (2025). Consumer Price Index for Household Appliances & Overall Cost of Living. U.S. Department of Labor. Retrieved from https://www.bls.gov/cpi/.
Federal Reserve Economic Data (FRED). (2025). Inflation and Cost of Living Trends. Retrieved from https://fred.stlouisfed.org/.
Consumer Reports. (2025). Long-Term Price Trends in Household Appliances. Retrieved from https://www.consumerreports.org.

Additional References

Bureau of Labor Statistics. (2025). Consumer Price Index for Household Appliances. U.S. Department of Labor. Retrieved from https://www.bls.gov.
Whirlpool Corporation. (2018). Tariff Impact on Appliance Pricing. Whirlpool Investor Report. Retrieved from https://www.whirlpoolcorp.com.
Samsung Electronics. (2023). Competitive Market Pricing in Home Appliances. Internal Market Analysis.
Haier Group. (2024). GE Appliances and Pricing Strategy. Corporate Report.
Consumer Reports. (2025). Appliance Repair vs. Replacement: A 30-Year Analysis. Retrieved from https://www.consumerreports.org.