6 thoughts on “January 10, 2017

  1. Personally I think 99% of those plans are pointless at best or outright scams unless it is on a high end device or expensive appliance. Even in those cases you have to read the fine print on what it covers, so when the system prompts at my store I ask with all the enthusiasm I think they are worth.

    • You can think that all you want. I’ve used them to replace cords and products chewed through by animals, run over by a vacuum, or destroyed by a toddler.

  2. The only time I ever really pushed those plans when I used to work Big Box Retail was on Shredders. Most of the Manufacturers only covered the blades, but not the Motor. I always took that extra step though to give them information on how to take care of the blades properly and it’s had them coming back frequently because of that extra step. In a good way mind you! 🙂

    Most of those Protection Plans are like the Analogy often used about Guns, “Would rather have it and not need it than need it and not have it”. It’s a safety net for the customer in case the item breaks within the Manufacturer’s limited warranty coverage and saves the customer money in the long run. Most times people don’t consider that perspective but the way things are made these days, I’d rather spend the extra 16-24 bucks on that protection plan if it meant it would save me $100.00 or more down the line.

    • Except most plans I see are much too close to the cost of the item ($3 for a $10 tool? No sale).

      Most plans are for products that are unlikely to have an issue in the warranty period. That;s how they make money and why they’re pushed.

      The only exception for me is a big ticket item that research shows is reliable generally, but has a reported low incidence of severe problems. And then, only if the item is heavily reduced and the plan is reasonable (under 20% of the sale price for several years of coverage).

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