INFOWORLD GRIPE LINE BY ED FOSTER Bookmark this page

  
Replying To:
Extended warranties almost always stink... (none / 0) (#6)
by Paul Sherman on Mon Apr 16, 2007 at 10:28:18 AM PDT

None of the story surprises me, I've dealt with extended warranties and service contracts (they're identical for all practical purposes) for almost 30 years. And that included trying to sell them. The only party they're effective for is the seller. A hint, they won't sell a service contract if there's not at least 30% pure profit in it. Currently I work in a healthcare system dealing with medical equipment. If ever there was a segment where extended warranties might work, this would be it. And guess what - they don't work there either. Even if the work isn't done in-house, it's cheaper (and just as fast) to call in as needed. And for cost comparison - the average contract for medical equipment runs ~ 8%/year. Consumer contracts often run double that. For me, it's pretty hilarious to hear some poor floor salesman at a store try to convince me that the extended warranty is a good idea. (Especially since I've been dealing with those contracts longer than he's been alive).


Post Comment

You are not logged in. If you don't have a user account yet, by all means go make one! If you do have one, you can post as "yourself" by filling in your nickname and password below. Otherwise, your comment will be posted as Anonymous User.

Create Account
Nickname:
Password:

Post Comment: Post your comment below and then please answer the security question. I apologize for the inconvenience, but it does help deter spammers. -- Ed Foster
Subject:
Comment:

To post your comment, please answer the following security question:
 Which of the following is a car?
Louisiana, Red, Beagle, Hyundai, Collie, Indiana
Allowed HTML: <A [HREF] [NAME]> <DT> <TT></TT> <OL></OL> <CITE></CITE> <CODE></CODE> <I></I> <UL></UL> <BR> <STRONG></STRONG> <BLOCKQUOTE [TYPE]></BLOCKQUOTE> <DD> <EM></EM> <P> <B></B> <LI> <DL></DL>
Menu
· create account
· faq
· search

Login
Make a new account
Username:
Password:

 HOME  NEWS  COLUMNS  BLOGS  PODCASTS  TECHNOLOGIES  TEST CENTER  EVENTS  CAREERS  IT EXEC-CONNECT   About Awards Contact Us 

Copyright © 2006, Reprints, Permissions, Licensing, IDG Network, Privacy Policy.
All Rights reserved. InfoWorld is a leading publisher of technology information and product reviews on topics including viruses,
phishing, worms, firewalls, security, servers, storage, networking, wireless, databases, and web services.

 ComputerWorld :: LinuxWorld :: Network World :: CIO :: PC World :: Darwin :: CMO :: CSO
IT Careers :: JavaWorld :: Macworld :: Mac Central :: Playlist :: GamePro :: GameStar :: Gamerhelp
ITWorld Canada :: Computerwoche :: Techworld UK :: tecChannel :: IDG.se :: IDG.no :: IDG.pl

create account | faq | search