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Extended Warranties....are they ever worth it?

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  • Extended Warranties....are they ever worth it?

    So I started selling warranties as part of my job at Staples and I have to wonder...are extended warranties worth it?

    I've heard sometimes with electronics they can be. I have phone insurance but that's only so I can upgrade to any phone I want more often than usual.

    I'm wondering if for like consoles, or headphones would they ever be worth it?
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    "Maybe if he had an iron suit or a magic hammer...."

  • #2
    I had one on a TV I owned and it ended up saving me purchasing a new TV, so I say yes, in some circumstances.
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    • #3
      Originally posted by broncoFan! View Post
      So I started selling warranties as part of my job at Staples and I have to wonder...are extended warranties worth it?

      I've heard sometimes with electronics they can be. I have phone insurance but that's only so I can upgrade to any phone I want more often than usual.

      I'm wondering if for like consoles, or headphones would they ever be worth it?
      for most small items the cost is minimal and probably worth it.

      as for big ticket items I would not buy something I can't get insurance on.

      Give me piece of mind in case something happens it is covered.

      I have it on all of my appliances that covers semi annual PM's on them.

      recently a refrigerator needed a couple of replacement glass shelves retail they were $200 each sears sent them for nothing. IMO replacement parts are severely over priced.
      it only takes one sitaution for the warranty to pay off.

      Had a furnace replace about ten years ago when it would not pass a CO2 test. best $200 over 5 years I ever spent. got a $1500 way more efficient (92%) vs 60% furnace for nothing. monthly cost of gas went down by more than 50%.

      another instance was a gas dryer needed the drum replaced parts over $300 plus the service call. one unit has been replaced 3 times since it is a high end Samsung
      I've got my moneys worth.

      So yes I say spend the few bucks more. sleep better at night.
      Last edited by Garfield; 11-22-2014, 10:41 PM.

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      • #4
        I bought an extended warranty once a long time ago, now I have a policy of not buying extended warranties ... I don't know of ever regretting it either. Typically the warranty that comes with a product is sufficient.

        Now YOU are selling them and you don't have reasons why somebody should by one, it doesn't sound like you are very confident in them? Or Staples has not trained you on the "benefits" of them? I think they're a sales revenue booster more than anything else... I assume it also increases commission for a salesperson.
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        • #5
          I never purchase them and I cannot think of a time I ever wished I had. To most, even the term 'extended warranty' is perceived as a grabby effort to get more money.

          If someone phrased it more along the lines of, 'this item comes with a standard 1-year warranty on parts and labor, but there is a supplemental warranty available that doubles that and only costs a few dollars'; I might be more interested in learning more.

          In other words, frame it up as a benefit to me and I will listen.
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          • #6
            Originally posted by brianmcfarlane View Post
            I bought an extended warranty once a long time ago, now I have a policy of not buying extended warranties ... I don't know of ever regretting it either. Typically the warranty that comes with a product is sufficient.

            Now YOU are selling them and you don't have reasons why somebody should by one, it doesn't sound like you are very confident in them? Or Staples has not trained you on the "benefits" of them? I think they're a sales revenue booster more than anything else... I assume it also increases commission for a salesperson.
            No, haha I'm not very confident in them. Although I can see the use in them so it's not like I'm selling cigarettes which give someone cancer. So that is a definite plus.

            I'm not a bad salesman, so I don't need much training (I've taken years of personal communication classes,) I'm just wondering when is it worth it to buy insurance.

            I'm thinking about buying an Xbox One and am wondering if the warranty is worth it.
            sigpic

            "Maybe if he had an iron suit or a magic hammer...."

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            • #7
              Bought a Samsung refrigerator in 2009. 1 year warranty. Got the 4 year extra from Lowes. Refrigerater went dead just a few months before the extended warranty expired. Lowe's refunded my money completely. So I basically got a fridge for 5 years for the price of the extended warranty.

              So it worked for me one time.

              It's the same thing as insurance. You can gamble and just get PLPD, or you get full coverage , spend more each year but if something happens you at least have something to fall back on versus losing the whole price of the car if totaled, or have to shell out big bucks for repairs.
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              • #8
                Being on the service drive of a Cadillac/Chevy dealer?? Ooohhhh yeah, they're worth it!

                Often times I'll call in a claim for $3k- $5k and see on the contract they paid less then that... and it's not hte first claim I've called in for them. So... yeah... on a vehicle? Yes. As long as it's a good warranty. A lot of the crap online or advertised on TV is just that... crap. But the manufacturer and credit union offered ones? Yes please!!!!!

                But, your example? Yeah... your employers need to better train you on the benfits. If you don't believe, then you won't be able to sell them.
                *2011 BCMB Locker Room Division I League Champion*
                *Voted; 2013 & 2015 BCMBA's Scariest Mod*
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                • #9
                  If you only look at the overall failure rate of the items being insured, nearly all the time the warranty will run out before the item fails. I agree with buying it for a big ticket item. The cost of replacement would be high and the cost of the warranty is relatively low. And if I'm buying refurbished electronics, such as refurb computers and such, I want a warranty for the parts replacement.

                  Oh, and one other thing. My loving wife is kind of hard on electronics. So anything I buy for her I automatically get the warranty. It's been worth it.
                  You Tell 'em Justice is coming. You tell 'em I'M coming!sigpic

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                  • #10
                    First on your xbox one I would get a warranty from squaretrade,


                    I have had replace a laptop screen, an electric pressure cooker, a cracked tablet, Hoover floormate, & a broken wooden sofa frame, in the last 2 years. All paid for by extended warranties. So I feel they are worth it.
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