Is the Extended Warranty Worth It?

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How many times have you been suckered into “buying the extended warranty” (on small technical items) from an aggressive salesperson? Sales reps will suggestive sell till the cows come home! Some seasoned reps won’t even bother cause they know the answer is no. Extended warranties can be tacked onto anything and everything, as even a measly pack on pack of headphones (believe it or not). C’mon dude, go make your commission somewhere else, your mind yells.

Truth is, these sneaky sales reps make commission off every extended warranty sold. But, how many times has this “piece of mind” actually revitalized your product? Is it worth it? Is it a cash grab for businesses? Truly, this is where companies actually make their money, it’s their biggest chunk of revenue. As a matter of fact, about 80 cents of every dollar spent on extended warranties goes straight in to the company’s pocket. The remaining 20 cents goes into insuring your purchased product.

However, some people may agree that it’s wise to buy extended warranty for a long-term purchase, such as a television or a fridge. Seeing that the item goes wrong after a year then you can have your product revitalized, at no cost. Happy ending you think, cause getting that service person to your place was no problem but once they start dictating their “separate” charges, then your temper starts flaring! Gotta be careful cause not everything is covered.

There are some people out there that would ride out their product’s lifespan until an issue is discovered and then have it “refreshed”. Maybe a workable decision, what do you think?

Did you know that 3 out of 10 people purchase the extended warranty. Have you ever “invested” in an extended warranty? Is it worth it?

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