You have to adjust the price for the cheap vacuum cleaner in your mind. You are actually talking about several of them, because of their reduced lifetime.
Prices do not necessarily reflect the actual costs of the product directly sometimes not even remotely. Printers or game consoles for example are hardly or not at all profitable. The main purpose of prices is to differentiate the product classes, otherwise it would be harder to tell, which one actually is the higher class product. So that part of the pricing would not move at all.
Economics of scale. The higher quality parts will be produced in greater mass and become cheaper.
Innovation. If there is a need for cheaper vacuums, somebody will eventually find a way to build one.
Finally, the main point: Planned obsolescence [0]. Products are actually designed to break directly after the 2 year guarantee. One could argue, that designing costs would actually fall, due to the obsolete step.
You have to adjust the price for the cheap vacuum cleaner in your mind. You are actually talking about several of them, because of their reduced lifetime.
Prices do not necessarily reflect the actual costs of the product directly sometimes not even remotely. Printers or game consoles for example are hardly or not at all profitable. The main purpose of prices is to differentiate the product classes, otherwise it would be harder to tell, which one actually is the higher class product. So that part of the pricing would not move at all.
Economics of scale. The higher quality parts will be produced in greater mass and become cheaper.
Innovation. If there is a need for cheaper vacuums, somebody will eventually find a way to build one.
Finally, the main point: Planned obsolescence [0]. Products are actually designed to break directly after the 2 year guarantee. One could argue, that designing costs would actually fall, due to the obsolete step.
[0]: http://en.wikipedia.org/wiki/Planned_obsolescence