Great gifts for geeks, hand-picked by Download Squad

AOL Money & Finance

Posts with tag extended warranty

The Wal-Mart Weekly: The profit center in extended warranties

Posted May 27th 2008 5:08PM by Brian White
Filed under: Wal-Mart (WMT), Columns

Welcome to the 62nd installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, I'll be examining the extended warranty practices practiced by Wal-Mart Stores, Inc. (NYSE: WMT). In the mood to see how consistent the retailer's extended warranties were, I visited no less than three Wal-Mart locations this week to determine what kind of policy existed in the one product category where extended warranties really count: consumer electronics.

Continue reading The Wal-Mart Weekly: The profit center in extended warranties

Retail electronics extended warranties such a hassle

Posted Jul 13th 2007 10:20AM by Brian White
Filed under: Products and services, Consumer experience, Rants and raves

Do you plunk down $150 for an "extended service plan" on that new PC? How about $400 for that new plasma TV? Hopefully, you'll never need to use it. I've had my share of extended warranty hassles many times, and in most cases, I don't buy them. Check your homeowner's insurance or renter's insurance -- is what you're buying already covered, or could it be with a simple change?

Extended warranties come with nefarious names like "service plans" and "protection plans." Throw in adjectives like "advantage" and "power," and that's why they sell to many people. What are these meant for? Pure profit, plain and simple. In fact, the retail spiffs for selling these warranties can be a nice addition to an employee's pocketbook. Are they worth it to consumers? After reading this lady's horror story on a 42" plasma TV she bought at Circuit City (NYSE: CC), it brought back a few horror stories of my own.

Sales pitches like "you can just come in and get another one off the shelf" have been standard fare from what I have seen, but nowhere in the service plan details does it state this. But, the employees who staff electronics stores routinely say this to customers, including me. In fact, when I was offered a $9 "performance plan" on a $30 digital camera accessory, I had to giggle a bit while politely declining. Have extended warranties gone mad? You bet they have, and with the business planning that makes them part of the revenue picture for many retailers, it looks like the madness will continue. Do you buy them?

Symbol Lookup
IndexesChangePrice

Last updated: December 04, 2008: 11:49 PM

BloggingStocks Exclusives

Hot Stocks

BloggingStocks Featured Video

TheFlyOnTheWall.com Headlines

WalletPop Headlines

AOL Business News

Latest from BloggingBuyouts

Sponsored Links

Most Commented On (14 days)

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

  • My Portfolio
  • Create a New Portfolio

BloggingStocks Partners

More from AOL Money & Finance

Weblogs, Inc. Network