You've waited in huge queues to get to the cashier, and you've finally arrived. You've spent hours searching every store in the region for the perfect gift. Fortunately, you saw the deal of the century in the newspaper, and as you bring out your wallet to pay, you feel really pleased with yourself. "Do you want to buy the extended warranty on that?" the cashier then inquires. Crap. Another pitch for your business. Or is it? Extended sales warranties have always piqued my interest. I used to have a Pentax camera that I really liked back in college (okay, I'm a little behind the times here). I could buy an additional warranty for an extra $30 – if my memory serves me well – that would allow me to return it to the retailer and exchange it right away. I bought it. What's more? It turned out to be profitable. I stumbled and broke my camera lens while on a hiking vacation. Without hesitation, the shopkeeper took it back. I get the point. As I become older, I'm beginning to wonder if the latest extended warranties are genuinely worthwhile. Third-party extended warranties are becoming increasingly popular. Third-party warranties may be less expensive and simpler to get in some instances. But don't believe me. Steve Abernethy, the CEO of SquareTrade, was interviewed by me. The objective of SquareTrade is to provide clients with exceptional warranty coverage at an accessible price. Like Amazon.com, Crutchfield, and Buy.com, many unique consumer-focused shops offer our warranties. Their website claims to offer warranties that are up to 70% less expensive than those offered by their competitors. I briefly looked around their site and saw that an extended warranty for a recent purchase – my Flip Ultra HD camera – would cost $22.98 at Best Buy against $19.99 at Square Trade, saving me $14.9 percent. I had a few questions for Steve because I was interested in learning more about SquareTrade and extended warranties. Steve......
1. What is the most common misunderstanding about in-store warranty policies?
Most sellers want you to feel that you have no options when it comes to warranties. They also want you to feel that you only have one chance to buy at the counter, with no time to investigate, and that their offer is your only option for safeguarding your device. Ironically, they have 20 TVs available, but only one warranty option at checkout. You do have the option. SquareTrade, for example, allows you to investigate and buy without feeling rushed and at significantly reduced pricing. You can also make better judgments by comparing pricing, reading customer reviews, and grasping what the contract actually covers. Most importantly, you have up to 30 days to evaluate whether or not a warranty is appropriate.2. Are there any instances or items where it would be appropriate?
Warranties are particularly beneficial when: A warranty often costs less than 15% of the item's cost or less than 25% if it covers accidental damage. Cell phones, computers, eReaders, and MP3 players are examples of portable items that are prone to mishaps. Computers, televisions, and game consoles are examples of items that are frequently used for long periods of time. A huge flatscreen TV, for example, has an extremely high repair/replacement cost.3. Can you tell me about third-party warranties and how they came to be?
SquareTrade saw that consumers were overpaying for warranties and receiving subpar support. We thought there was a huge chance to build a more rational service with a lot more client control. SquareTrade also saw an excellent opportunity to leverage the internet to be more transparent with customers, rather than being opaque and difficult to investigate as is the norm. SquareTrade thinks that warranties are no different from other items but that businesses sell them so that consumers are unaware of this. As a result, the stores are under no obligation to provide competitive pricing or exceptional service. As a result, SquareTrade designed its entire business to allow customers to quickly study and assess us (good or bad) so that others can get a true sense of the actual service experience. Why shouldn't warranties be purchased in the same way? The current state of affairs has made research extremely difficult because it exposes their service as incredibly slow and inconvenient. We also considered the internet to be essential for conducting price research. Finally, rather than losing warranties in a shoebox, we saw the internet as a better approach to help people store, manage, and locate them.4. Who do you think your ideal client is? What guarantees do they have that the policy will be followed?
SquareTrade should be familiar to everyone who has ever considered purchasing a warranty at a store. SquareTrade is significantly less expensive and provides significantly better service than store warranties, as anyone who conducts an investigation will discover. We believe in openness; therefore, we make it simple for customers to leave reviews of our service for others to see. Customers can look up "SquareTrade Reviews" on the internet to discover what tens of thousands of other SquareTrade customers have said about our claim service.5. Are there any "buyer beware" issues with third-party warranties that buyers should be aware of?
Most store warranties are actually administered by third-party companies who are white-labeled by the store so that you think you're buying the retailer's brand. When purchasing these warranties, consumers should exercise caution. Three questions a customer should ask concerning a warranty are: Is there a warranty on the service? The majority of warranties don't cover speed. You could be without your laptop for up to two months while they locate a replacement part. SquareTrade offers a 5-day service guarantee: if your item isn't serviced, replaced, or refunded within 5 business days, we haven't met our standard of service, and we'll return your warranty payment. Is there any paperwork required? Most warranties necessitate a mountain of paperwork. To register a claim, some even demanded a notarized affidavit. SquareTrade does not require any papers because all of your data is stored online. We even make it simple to keep your proof of purchase online, so you'll never have to look for it again. What exactly is covered? There are hidden catches in many warranties. Some don't cover the cost of shipment to the depot. Some policies do not cover power surge failures. Best Buy's accidental damage insurance plan covers spills but not complete immersion, so you're out of luck if you drop your phone in the sink. SquareTrade makes it crystal clear what is covered, which includes everything mentioned above.Conclusion
We are the 21st century's warranty. We make it very simple for clients to manage their warranties online. We make it simple to find out what other customers have to say about SquareTrade, both good and negative, right from the start. We also assist customers in pricing comparisons so they can be sure they're receiving the most significant value. We then make it simple for them to store their receipt, file a claim, transfer their warranty, terminate their warranty, and view their contract all online. Because everything is in one place, no paperwork is required. Other extended warranties require extensive paperwork, and some even demand a consumer to provide a notarized affidavit to register a claim! Additionally, we are the only warranty business that offers a 5-day service guarantee. We don't think waiting more than 5 days for service is appropriate. If it takes longer than 5 days, we'll refund the cost of your warranty as well as your claim — we haven't delivered on our promise of excellent service, so you shouldn't have to pay for it. Thank you for taking the time to speak with us, Steve! Comparing SquareTrade to your other retailer if you're a techie like me doesn't harm. I'm always looking for opportunities to save money, and I'm sure you are as well.