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View Full Version : Extended wattanties - I'm looking for people's experiences in one way or another


tankman1989
04-10-2011, 10:15 PM
I initially was going to ask for people who had multiple viewpoints such as having sold them as an employee, sold them as a store owner or working on the service/replacement end in one way or another - BUT I thought that would rule out some good stories.

The reason I'm asking this is b/c I'm writing an article about them since I've had to deal with them from about 4 different angles so I have unique stories and have heard all the different complaints from customers, service people, 3rd party service companies, retail sellers and wholesalers. What I've taken away from this is that people should just buy a better brand (if that is an option).

I would really like to hear the viewpoint other than that of a customer as those are available in spades online. So if anyone would like to contribute anecdotal evidence to the extended warranty issue I would love to include it in the article. Also if you would like to post your opinion regarding the extended warranties please feel free to add that to the post as well.

jeremywise1313
04-11-2011, 03:49 AM
I worked at a Best Buy about 7 years ago, and at the time we offered two warranty based services: PSP (Product Service Plan) and PRP (Product Replacement Plan)...

When it came to PSPs, thats what each department pushed for...I worked in Operations as a team lead, so I handled cust. service and the registers. PSPs were not very good in the long run, as you had to bring the item in (which could be an mp3 player, or a tv) and then had to be without the item for X days/weeks...

Most consumers hated them. Basically they viewed it as "why are you pushing so hard to get this warranty? Is the thing I'm buying crap? If so, F this, I dont want it"

Now, PRPs on the other hand were wonderful. As a consumer and an employee, I loved them. Unlike PSPS, if the item broke, it was replaced in that you got a voucher for the item's value of what you paid. Good for 2 years, which pretty much anything that was going to break would do so in that time fram.

What that meant is that if you bought a PS2 for $400 when it came out....and 2 years later, it crapped out, you got $400 + tax back in a voucher. Well, 2 years later, the PS2 was $299. You just got "extra" money for games...get a new system, plus a couple games, and of course, another PRP....2 years later, same thing, PS2 is now $199.....repeat.

It was good for people who's item TRULY broke, however I think people began abusing it toward the end...Basically, all you had to do was bring the PRP info and the item into the store, say "it stopped working", and you get instant credit.

It's called "Black Tie Protection" or some other crap now...not sure how it works, but I miss the days of PRPs.

wtigger
04-11-2011, 03:51 AM
I do a lot of field service for warranty companies, and I feel nowadays they are a good investment, especially on laptops which are much more expensive to repair when out of warranty...

But, on the flip side, the warranty companies themselves aren't always the greatest to deal with. I have personally dealt with customers who have had long delays getting systems replaced/repaired when seriously defective...

So this issue is NOT simple in any measure...