rjn@hpfcla.UUCP (01/18/86)
re: Are you going to give me all your money, or just half of it?
I just purchased a generic electronic device (GED) at a local discount
outlet (LDO) here in Fort Collins. I encountered a sales ploy I thought I
would share with you. When the salesperson was making out the invoice, she
asked:
"Do you want the three year or the five year warranty?"
Now, GEDs usually have a 90-day or 1-year warranty, so I asked "What's the
difference?". She (and an accomplice) used that as the cue to launch into a
canned pitch about the LDO's wonderful warranties, and how much better they
are than the manufacturer's (MFR). This heightened my suspicion that
NEITHER or these warranties was the MFR's. And, after interrupting their
speeches, it turned out that BOTH of them COST EXTRA over the price of the
GED. The (no extra charge) MFR warranty in this case was, as I suspected,
the 90-day/1-year type.
The GED I bought sold for $129.00 plus state & local tribute. The 3-year
LDO warranty would have cost me an extra $30, and the 5-year an extra $60.
So, I said "I'll stick with the MFR's warranty, thanks.", to which she
responded "Why would you want to do that?", in a tone of voice that implied
that I was just about to take out a mortgage on the Brooklyn Bridge. I was
also asked to sign a place on the invoice that indicated that I accepted and
understood the limitations of the Magnusen-Somebody-or-other Warranty Act of
19xx.
As I was about to leave, I queried "I suppose if this GED is D.O.A., I can't
bring it back here." "Oh, no." she replied cheerily, "We'll exchange it if
you bring it back within seven days."
My overwhelming impressions:
* They hope that you will assume that the choice is between an extra cost (5
year) and a no-extra-cost (3 year) warranty, and opt for the three year.
* They hope that you won't notice the surcharge for the 3-year, or that if
you do, you will feel so gulible or timid that you won't complain.
* If neither of the above works, they'll hit you with a high-pressure sales
pitch anyway.
* I did not investigate the terms of the warranty. I suspect the following:
- The LDO's warranty is not a good financial deal. The same $60 invested
in a CD or the money market could REPLACE (not just repair) the GED in
five years.
- The clerks get a commission on the sale of the LDO's warranty. It
wouldn't surprise me if this were a big chunk of their pay.
- The LDO is hoping to never deliver on the warranty. They expect you to
forget that you bought it after about 18 months. After all, the MFR's
warranty statement won't give you a clue that you've got extra coverage.
And, if you're like me, the invoice (containing the LDO warranty info)
and the owner's manual are soon parted, because the invoice is needed
for tax purposes.
- The LDO may not be around in three years, much less five. This one, in
fact, was a completely different chain a few months ago.
I have not revealed the name of this store for two reasons:
* Other chains may be running the same number. You should beware of the
scam, not the store. This LDO sells many quality brands at steep
discounts. Of course, if all their customers see through this ploy, they
may have to raise prices.
* Much of what I've said here is pure speculation. If I named names, it
would probably be considered libelous and actionable by a predatory
lawyer.
Regards, Hewlett-Packard
Bob Niland 3404 East Harmony Road
[ihnp4|hplabs]!hpfcla!rjn Fort Collins CO 80525
This response does not represent the official position of the
Hewlett-Packard Company. The above data is provided for informational
purposes only.early@tonto.DEC (the higher we climb, the better the view) (01/22/86)
Subject: Warning: store warranty trick >I just purchased a generic electronic device (GED) at a local discount >outlet (LDO) here in Fort Collins. I encountered a sales ploy I thought I >..... >"Do you want the three year or the five year warranty?" I ran into this with another *leading* US/Canadian chain/mail order store of *high* repute. When the salesperson started asking questions about which warranty I wanted, I started questioning the integrity of the product (which I believe is first choice quality), and my wisdom in purchasing something that *needs* a warranty at extra cost! It was fun watching the salesMAN explain why a product of high quality needs a warranty! >difference?". She (and an accomplice) used that as the cue to launch into a >canned pitch about the LDO's wonderful warranties, and how much better they The bad thing about *secondary* warranties, is that (I think I recall), is that their maximum liability is to refund your warranty premium (or even a prorated portion thereof). >speeches, it turned out that BOTH of them COST EXTRA over the price of the >GED. The (no extra charge) MFR warranty in this case was, as I suspected, >the 90-day/1-year type. There are two LDO type stores I have shopped at: One, whose name I also won't mention, sells the goods at a discount to you, but refuses to honor any portion of the Mfr. Warranty, and recommends bringing it to a FULL SERVICE dealer (who is, in some states, not required to provide immediate service on products they did NOT sell !) Another option is to Mail it to one of the remote servicenters (right ! Mail in a microwave). The second store I dealt with, Marshalls, in Manchester, NH. The lens in my minolta came loose after a couple of years, and I brought it back to them because they are as a dropship point for Minolta repairs. The salesLADY there informed me that the camera was probably under warranty, and the repair would be free. Oh, yes, I could bring the receipt back when I picked UP the camera, so as not to have any unnecessary delays, and they were sorry it came loose ! (Guess where I do a lot of shopping !) > Much of what I've said here is pure speculation. If I named names, it > would probably be considered libelous and actionable by a predatory > lawyer. Shame on you. I know several lawyers, and they cannot sue unless hired by someone to do so ! (But I know where you're coming from !) :^) bob early (Dec E-Net) TONTO::EARLY) (UUCP) decvax!decwrl!dec-rhea!tonto!early