Tech Guys Whatever Happens Club

santer_2

I had a policy which would repay the one off fee if no claim was made for five years. Didn't make a claim and went to get the fee refunded, only to be told the policy had been discontinued.

Some extended warranties are difficult to justify

Another odd one is Argos cover, if they stop selling the product, they just refund the money, otherwise they get to keep it in their account with no prospect of having to pay out, and often the price of the replacement is more

Richie-from-the-Boro

Extended Warranties, are what the industry calls back end sales, and what I call a ' goldfish '

Shops are desperate to sell extended warranty guarantees on any electricals we buy. A fidge / washer / TV has to be made / shipped around the world / advertised at great cost / £8 million to open a store / 30 staff at £30k per annum / legislation, health & safety, insurance etc and the profit on the item is ' x '

Selling extended warranty at 30% of the products retail cost earns the store say a nett nett 10% which is 30% of the policy price. So a £200 quid washer has a £60 quid warranty which earns the store the same actual margin as selling the washer in the first place - it doubles their profit margin per item - but .. .. .. and its a big but - selling the washer had a distribution / marketing cost .. .. selling the insurance has virtually no cost.

There is little or no reason to buy this insurance and, if you do want it, you will normally be able to find considerably cheaper elsewhere.

Most people know about the extended warranties scam and make a choice, calling it the ' whatever happens club ' is yet one more way to slap the gullible public with a goldfish.

Richie-from-the-Boro

Richie-from-the-Boro wrote: »

Extended Warranties, are what the industry calls back end sales, and what I call a ' goldfish '

Shops are desperate to sell extended warranty guarantees on any electricals we buy. A fidge / washer / TV has to be made / shipped around the world / advertised at great cost / £8 million to open a store / 30 staff at £30k per annum / legislation, health & safety, insurance etc and the profit on the item is ' x '

Selling extended warranty at 30% of the products retail cost earns the store say a nett nett 10% which is 30% of the policy price. So a £200 quid washer has a £60 quid warranty which earns the store the same actual margin as selling the washer in the first place - it doubles their profit margin per item - but .. .. .. and its a big but - selling the washer had a distribution / marketing cost .. .. selling the insurance has virtually no cost.

There is little or no reason to buy this insurance and, if you do want it, you will normally be able to find considerably cheaper elsewhere.

Most people know about the extended warranties scam and make a choice, calling it the ' whatever happens club ' is yet one more way to slap the gullible public with a goldfish.

The Goldfish Theory

alienRIK, debitcardmayhem and Lil306 were on abit of a night out after the techie meeting, and not being big drinkers decided to go to the funfair that was in town for a burger and a bit of a look around, debitcardmahem commented to the group that on nearly all of the stalls it was impossible to win anything. All the ‘ games of skill ’ appeared easy, but when you tried, it was far harder than it looked, and most people went away a couple of quid poorer and empty handed. Lil306, although a bit short sighted was a canny lad from the Durham pits, he spotted that one stall was different .. .. it was another game of skill .. .. darts .. .. but instead of having to hit a tiny target, all you had to do to win was hit a big playing card. A blind man with the shakes could do it. And sure enough, everyone who paid their pound to have a go, hit a playing card and won a prize.

Bad news for the stall owner then? Well not quite. You see, the prize for hitting a playing card on this site was a goldfish. Now goldfish aren't very expensive, but you're never going to make much money ‘ selling ’ them to people for a pound.

But this stall owner was a bit cleverer than that .. .. You see, he knew that the people who had ' won ’ at his stall, hadn't gone to the fair expecting to go home with a goldfish. He also knew that they probably had nowhere to keep it and nothing to feed it with !

Which is why, at the back end of his stall he just happened to have a ‘ Tank & Food Package ’ available for tenner. Lil306 watched with some amazement as punter after punter handed over an extra tenner to solve the problem created by their skill and good fortune. I dare say the stall owner made far more money from the sale of ‘Tank & Food Packages’ than he ever made from people paying a pound to try and win a goldfish .. ..

As the wise audiophile alienRIK said at the time, the stall holder made a lot more money than the other stall owners who made their games difficult and were tight with their prizes. This really simple example demonstrates one of the most powerful business profit making secrets of all .. .. the power of back end sales.

debitcardmayhem

Richie-from-the-Boro wrote: »

The Goldfish Theory

alienRIK, debitcardmayhem and Lil306 were on abit of a night out after the techie meeting, and not being big drinkers decided to go to the funfair that was in town for a burger and a bit of a look around, debitcardmahem .

Defamation , get your facts right Richie

Spelling gets worse after a couple of Newcies

Edited: Plus I won at find the lady (no offence Andrew not Lily)