Egmont42


quality posts: 0 Private Messages Egmont42

Like most other posters here, I'm negative on these.

Over the years I've bought a bunch of stuff, including maybe ten laptop computers. There have been a few here and there where an extended warranty might have been a good idea, but overall I've come out way ahead paying for repairs and keeping the money that extended warranties would have cost.

The bottom line is that folks who sell these - companies and individual commissioned sales reps - make money. That money comes from how much more the warranty costs than the average of the claims they pay. In other words, it comes out of the pockets of the suckers who buy them.

Once in a while they pay off. Anecdotal evidence from folks who bought one and had a big claim paid doesn't change the big picture, though. If the previous poster who got a $500 extended warranty on a car and had a $2,000 covered transmission failure bought five cars and paid $500 for an extended warranty on each, the odds are that s/he would have had a $2,500 outlay for a $2,000 reimbursement (or maybe $2,050). That's how randomness works. The general principle is still that they're a good deal for those who sell them, which is why they keep selling them, but not for us.

Ajax77


quality posts: 0 Private Messages Ajax77

Two of my company's biggest clients run an extended warranty business. They are both multi-millionaires for the sole fact that they take lots of peoples' money and very rarely pay any back out. So, after seeing how these guys run their shop, it's made me very leery of extended warranty companies. Plus, I'm not sure if I just take good care of my stuff, but I've never had any instance where I was thinking, "Man, I wish I'd had an extended warranty at this time." I've always done well with just having the regular old manufacturer's warranty, which I actually HAVE used before.

Sloar


quality posts: 0 Private Messages Sloar

I almost never buy extended warranties, particularly on electronics, because by the time they come into play, usually a year or two, the item I bought could be replaced for the same price. I would think this would be doubly true for cheap Woot items.

SenorWaterboy


quality posts: 0 Private Messages SenorWaterboy

I am 50/50. Like someone else said, Cars and Laptops are what you need extended warranties for. I have had some great laptops, and some crappy ones. A simple thing like the power port breaking now means a new motherboard more times than not. I think if Woot! gets a good policy and makes it available on 'high' ticket items, it would be worth it to some folks.

davidfawcett


quality posts: 0 Private Messages davidfawcett
MISMan wrote:I don't mean to be rude - but you got suckered. How could anyone rationally think that Best Buy would be able to FIX SOMETHING WALK-IN REGARDLESS OF THE PROBLEM. That is not even feasible. There is no way they could have all the parts and all the software needed to repair everything in each retail location.

I also disagree that it is Woot's name on the line. Unless Woot does it themself - it would be CLEAR THAT IT IS AN AFTERMARKET WARRANTY and BUYING IT MEANS YOU AGREE WITH THE TERMS. So, are you saying that you would pass up deals if this third party does not satisfy you? That is saying Woot's Reputations is hurt everytime UPS loses a package they shipped, or is damaged, EVEN THOUGH UPS PAYS FOR A REPLACEMENT. People are smart enough to know who is who. Best Buy has a bad reputation because of HOW THEY SELL IT - they LIED to you and therein is where their reputation is hurt, NOT THE FACT THAT THEY OFFERED ONE. Just my opinion - and it vacuums that Best Buy Lied to you - but get used to it. Don't believe anything people tell you unless you see it in their Legalese (Black & White in the contract) because at the end of the day - their responsibility is in the Terms and Conditions of the ACTUAL CONTRACT. I HATE Best Buy too - I have not bought anything there in YEARS. I can find EVERYTHING cheaper, and get it nearly as fast online (heck, I have been an Amazon Prime Member since they started it - I hardly leave my house and I have saved so much money (and spent a lot - I think I had my accountant check and it was almost $700K in the last 4 years but it kept me from buying it locally.

The promise (and contract) was that without an immediate fix, it was replaced immediately. It was in their contract, they simply maintained they had the right to unilaterally change the contract because of a phrase on their general prospectus for service contracts that said they could change their offer at any time. That this ability to unilaterally change tghe actual purchased contract could be (contracturally) extended to the actual service contracts but who (of anyone who as a life) is going to small claims court for $60? The only real option is to cancel the remainder and get a refund (to discover that the cancellation refund is still reduced by the 6 months of the manufacturer's warranty even though BB's doesn't start until the OEM warranty is over).

(I include the foregoing comments so Woot can get an idea of what kinds of things they are in for if they do this,)

Woot's sales and rep ARE hurt by their shipping company choices - I stopped ordering regularly when Fedex continually screwed up my shipments by not delivering during the hours my full time staffed receiving location was open, not leaving notices of attempted delivery, etc. Theoretically Fedex Home will do it correctly now, but I am not going to test it with anything I want delivered reliably. A bad choice of warranty company will certainly affect my choice of purchasing those thing I want with a warranty, and a flaky/lying warranty company will certainly influence perceptions of Woot as well.

maxdrive


quality posts: 0 Private Messages maxdrive

I buy warranties from Square Trade on every electronic item I purchase. I have had to use their service once on an MP3 player. They emailed me a shipping label. I boxed and sent the player to them and they tested it, found it dead and refunded my original purchase price plus my cost to ship it to them.
Their warranties are much less expensive than the store versions and they are very accommodating. They will warranty refurbs as well as used items for the full purchase price!
You can put a small Square Trade logo on the billing email which is a link to their website. If a customer is interested they can click on the link and set up their warranty. If not, all they have to do is ignore the link. No pressure, no hassle.
It is a good service for your customers and would definitely be a valued addition to your operation.

http://www.squaretrade.com

No, I don't work for them. Nor do I get any credits or freebies for this post. I just have been dealing with them for a couple of years now and am extremely happy with the way they do business.

Yesterday, eighty million gun owners committed no violent crimes!

vinniecruz


quality posts: 0 Private Messages vinniecruz

I once thought auto extended warrantees were a must. I purchased a lexus lx400 and I then brought the extended warrantee for 1200 dollars that ran the warrantee to 100,000 miles . On my first claim I was told that I could not get a ball joint repaired through the warrantee because it was an aged part. I'm afraid that the extended warratees are really a come on and that these companies fight you every step of the way to honor them. To me it's not worth it to have to put up with scrupulous businesses that cheat the consumer. I would feel that extended warrantee's fit in that category (Cheating consumers)

SteveO712


quality posts: 0 Private Messages SteveO712

Order 23934310
I've sent two emails via the web page previously and posted in the forums. I still haven't received the Blogging Old CEO from July 12th. The tracking number (02185456301020141681) says that it had arrived at the local post office. It hasn't been delivered to my home and after going there I was told that the individual package with that number wasn't on the pallet that was dropped shipped and that I should contact the shipper. After all the emails i've sent whether composed or through the webpage, I haven't gotten and replies, not even automated. I did receive in the mail via Fedex Home a package from Woot on 8/6/08. In it, it contained a Curious George Puzzle. I was wondering if this was supposed to be a replacement for the July 12th, 2008 Blogging Old CEO. I had gotten three and this is only one thing. Should there be more on the way?

gandolf256


quality posts: 0 Private Messages gandolf256

I believe in most situations extended warranties are just a gimick. A way to squeeze 10% or 20% more profit out of the customer. But in the case of laptops it can turn out to be a major disaster not to have a warranty that protects your system beyond the first 90 days. If you have bought a lower end laptop (anything under $1000), then I wouldsay forget the extended warranty. The cost of adding another couple of years to the system could be an additional 30% of the purchase price. But if you bought a more expensive piece of hardware, depending on the system design, you could get more than your money's worth out of it.

We (my family) have owned nine laptops spanning the industry's vendors. IBM, Gateway, Dell, HP, and Sony. The IBM and Sony systems were the early units and we never had problems with them. We had an extended warranty on one of the Sony's and never used it, but it did become an attractive feature when I sold the unit on eBay. The Dell and HP systems were the next group of systems we owned and while I would say they were good units, I say this because we had extended warranties on all of them and needed them.

I don't believe in buying anything at full retail or even close to it, which is why I love Woot.com. I buy refurbished units. To my way of thinking, I am buying a unit someone else found the bugs in and so there is that much less chance of it failing, but it also means the system may be a year or two old, off-lease, lemon-return, etc. In most cases, refurbished laptops come with only a 90 day warranty. My experience has been that if you are going to have problems with a refurbished unit, they will not be the breakin type problems that electronics usually have in the first 90 days or so of operation. The Dell and HP systems we owned (refurbs) had major failures at the hardware level. Cracked motherboards, and fried cpu's. The problem with laptops can be how they are used. We tend to move the systems around a lot. Movement, carrying the laptop, depending on how they are carried can cause flexing of the motherboard and g-forces being applied to the entire system. Minor failures, such as fans not working properly caused one system to fry the CPU. The lighter laptops have less rigid case designs and seem to me to be greater candidates for MB flex problems. Our experience suggested that if you move the laptop around a lot, buy the extended warranty.

One other point, the laptop industry is a really neurotic market. Nothing stays the same for long. Models change almost every year in some cases. Some new models may just be bad designs or contain poorly spec'd components. We owned two, purchased new units (I violated my own standards, but the units were so cheap new, I couldn't pass them up, and they came new with 3 year warranties!), they each went in for repair a few times. They were the most problematic laptops we owned. There is no period for laptops where a model that has design flaws can be worked out in year two, three or four. If it is a bowser, it remains a bowser until they change models next year. So how can you know?

Some vendors charge an arm and a leg for the extended warranty. Since I buy cheap in the first place, I am not likely to spend $400 on an extended warranty. I will spend $100 to extend the warranty of a refurbished laptop out for a full year.

mrileyatwoot


quality posts: 1 Private Messages mrileyatwoot

Staff

SteveO712 wrote:Order 23934310
I've sent two emails via the web page previously and posted in the forums. I still haven't received the Blogging Old CEO from July 12th. The tracking number (02185456301020141681) says that it had arrived at the local post office. It hasn't been delivered to my home and after going there I was told that the individual package with that number wasn't on the pallet that was dropped shipped and that I should contact the shipper. After all the emails i've sent whether composed or through the webpage, I haven't gotten and replies, not even automated. I did receive in the mail via Fedex Home a package from Woot on 8/6/08. In it, it contained a Curious George Puzzle. I was wondering if this was supposed to be a replacement for the July 12th, 2008 Blogging Old CEO. I had gotten three and this is only one thing. Should there be more on the way?



I checked on this and we did reply to your emails. For your security, I've sent a PM to you with those responses. I would strongly encourage you to check your spam and junk email settings and folders. An update on the Blogging Old CEO order is included in that PM to you.

vst631


quality posts: 0 Private Messages vst631

WOWZA YOU SAVED $700k IN THE PAST 4 YEARS?!?!

I wanna see the massive amounts of bling in your house. I bet your crib makes Kobe's look like a youth hostel. You must be a line item by yourself on Amazon's income statement!

hehe sorry couldn't help but go after that one. ;)

[quote=David Fawcett]
I also disagree that it is Woot's name on the line. Unless Woot does it themself - it would be CLEAR THAT IT IS AN AFTERMARKET WARRANTY and BUYING IT MEANS YOU AGREE WITH THE TERMS. So, are you saying that you would pass up deals if this third party does not satisfy you? That is saying Woot's Reputations is hurt everytime UPS loses a package they shipped, or is damaged, EVEN THOUGH UPS PAYS FOR A REPLACEMENT. People are smart enough to know who is who. Best Buy has a bad reputation because of HOW THEY SELL IT - they LIED to you and therein is where their reputation is hurt, NOT THE FACT THAT THEY OFFERED ONE. Just my opinion - and it vacuums that Best Buy Lied to you - but get used to it. Don't believe anything people tell you unless you see it in their Legalese (Black & White in the contract) because at the end of the day - their responsibility is in the Terms and Conditions of the ACTUAL CONTRACT. I HATE Best Buy too - I have not bought anything there in YEARS. I can find EVERYTHING cheaper, and get it nearly as fast online (heck, I have been an Amazon Prime Member since they started it - I hardly leave my house and I have saved so much money (and spent a lot - I think I had my accountant check and it was almost $700K in the last 4 years but it kept me from buying it locally. [/Quote]

glass2go2003


quality posts: 0 Private Messages glass2go2003

First post - finally feel compelled!

I manage the Extended Warranty program for a major retailer. It's a money-maker. Theoretically, Extended Warranties help reduce returns, and create comfort for some consumers, thus increasing sales.

Most electronic items will either have an issue within the 1st year, or will live long happy lives. The 1st year is covered by the manufacturers warranty. The actual usage on the Extended Warranties is very low - that's how the money is made.

Most retailers will sell an Extended Warranty for an item that was purchased elsewhere, within 30 days of original purchase date with proof of purchase. If a salesperson says "we don't do that," they are incorrect. I would rather see Woot suggest that those who want an Extended Warranty pursue that route. It's a sleazy business, and the least favorite part of my job.

madfrisbee


quality posts: 6 Private Messages madfrisbee

I tend to go with your original analysis. My take is that these warranties for the most part rip people off. This is especially true when the warranties in question are sold by a company one trusts (e.g. Amazon or Best Buy), which then turns around and hires another company I've never heard of to back said warranty. It seems that the standard procedure for this "other company" is to locate the outcasts of the used-car-sales community, unite them in unholy matrimony with execs fired by Enron for ethics violations, and bestow upon their accursed spawn the title of "warranty repair representative" with all the rights and privileges appertaining thereto. These warranty service companies generally have Byzantine phone tree options, and when the stupefied customer finally reaches a human after an interminable hold time, she finds that this human works "in customer service; you need tech support." And then the phone tree navigation and on-hold time continues ad nauseum.

My advice - if Woot must offer extended warranty coverage, then PLEASE make sure that the procedure for getting warranty service is clearly explained, and that the call-center staff are highly-motivated individuals with at least a modicum of basic human kindness. If it's possible to avoid outsourcing the service, the whole experience is likely to be a much more positive one for all concerned.

lanikei


quality posts: 1 Private Messages lanikei

Not much new insight, but feedback nonetheless.

I was also a BB employee, both in sales and service. Despite all of the messes I had to deal with while getting customer's products serviced, I STILL recommended the warranties on many of the products I sold. I knew plenty of slimy sales guys and high-pressure managers who pushed customers to buy and employees to lie. But I ALWAYS offered the warranties, and I frequently recommended them to customers based on what I knew about them.

I fix computers, but I am leery of opening up a laptop and create more problems than I am fixing. I ALWAYS buy warranties on laptops (particulary now that many of them cover accidental damage), since I know that if a problem crops up, it will usually be cost-prohibitive to fix. I have had a few go in for service, and I have had batteries replaced for free. Thus far I have not had to use ADH coverage, but that is a peace of mind thing that I am still personally willing to pay for - though I don't expect everyone to be as aware of their own clumsiness as I am. :-) With laptop prices coming down, I can see warranties being less essential, so I'm not sure I would buy one on a 3 or 4 hundred dollar laptop.

I do not usually buy desktop warranties since I know how much parts cost and I am confident in my ability to repair most issues for less than the warranty and with less hassle and downtime. Probably fairly good assumption for Woot buyers. But that is not to say that I won't suggest warranties to other people! Even people who CAN fix problems may not want to have to deal with it if they can throw money at the problem.

I, like several other posters, have been tempted by a few high-priced refurbs, but hesitated due to the 90 day warranty. Computers and TVs being the main things I can think of. In fact, now that I have heard of SquareTrade, I may be willing to drop that money at Woot that I wouldn't have before. I don't need a product to last 3 years at Woot prices, but I WOULD be angry if I spent hundreds of dollars on a product that died within a few months. Angry at myself for taking a risk on a warranty that short.

I also agree with other posters saying that you take a big risk by selling the warranties. People will always see you as the "face" of whatever repair center you deal with. I think you might be wise to have a page in the purchase process that maybe kicks you to the insurance vendor or something similar. A "Hey, you just bought X product, would you like a warranty for X$?" sort of thing. The suggestion about a checkbox for an option to never see that page seems like a good idea as well.

At the very least, thanks for taking customer suggestions into account.

Snapster


quality posts: 16 Private Messages Snapster

I want to break in a moment here to thanks everyone for their awesome feedback with regards to extended warranties. There couldn't have been a better process for us to validate many of our own thoughts on the matter and get to consider some we hadn't had.

I'll get a blog post together ASAP for a status report on Woot's warranty provider findings and ask for any further opinion then.

dbdigital


quality posts: 9 Private Messages dbdigital

Generally I don't get extended warranties (EW). Depends on the risk/reward to me.

I did get 1 EW (with "complete care") on a Dell Inspiron 6000 because it was used by my kids for school. It added about $150 on an $1100 notebook.

The 4 years are up and here's what the $150 got me:
Keyboard replacement - 3 times (seems my youngest likes these keys)
LCD Screen Replacement
Hard Drive Replacement
Motherboard Replacement

All of these (except the first keyboard incident) came after the first year of standard warranty.

So...for me...in this case...the EW was money well spent. I imagine it would have cost me approx. $500 to replace the major components.

I didn't expect the quality problems, but they happened. Now if it dies, I at least got 4 good years out of it.

Funny we don't settle for a 1 year warranty on our cars, but we do with electronics. Hey, if they're made that well, why doesn't the manufacturer give you more coverage time? Simple - EW's make money...it's like Insurance...a roll of the dice!

ptrively


quality posts: 1 Private Messages ptrively

Here are my suggestions regarding warranties.

1: Yes, you should offer them. Online purchasing takes out the "Pressure" tactics used by big box stores. If people are risk-averse or they're making a mega purchase that they can't afford to replace in 3-4 years, then let them pick up the warranty. Offering a warranty doesn't make a company evil.

2: If you *truly* want to avoid the reputation that you're offering them as a way to make more profit (which, of course, you are) then you can offer to return the warranty money (if it's unused) at the end of the warranty period in the form of Woot Credit. I will tell you right now, if you had that kind of offer, I would purchase it on every item. Why not right?

Thanks for polling the community!

~Paul Trively

FritoBandito


quality posts: 1 Private Messages FritoBandito

My gut reaction:
Extended warranties are for suckers.

My second gut reaction:
If you are trying to sell me an extended warranty, then you are trying to treat my like a sucker. I don't like that.

My third gut reaction:
Wait a second. This is Woot! What if they put their own special woot touch on things? Just offering the extended warranty as an option at check-out is too much like something Amazon would do.

So what would an "extended wootanty" be like?

Well, how about making it a flat price just like shipping. $5 for an extended warranty no matter if what you are buying is a Leakfrog or a 65" Olevia LC TV.

How about making the terms CONSISTENT across all products. I don't want to have to read the fine print to read how the leakfrog warranty is different than that laptop computer warranty is different than the scooba warranty. I want to read the "extended wootanty" policy once, grok it, and know that I get the exact same coverage on a InFocus IN76 High Definition projector that I would get on a Weather Channel Emergency Preparedness Kit that I would get on a Tommy Armour Morph Irons 3-SW Set.

Unless there is something special and creative about warranties sold by woot, it just seems like a sellout. (and not a good one like sellout.woot)

By the way, does a Leakfrog warranty cover accidental damage due to exposure to water?

My Legacy of Craps: 5/9/08, 10/23/08, 3/27/09, 5/26/10, 9/14/11, 10/12/11, 11/9/11, 12/6/11, 1/19/12

FenStar


quality posts: 16 Private Messages FenStar

By the time the original warranty expires, the product isn't worth replacing half the time. I am also too lazy to go through the hassle of trying to get something fixed. I also find tech support to ALWAYS be incompetent, and I don't expect the warranty people to be any more competent.

Still single, can't imagine why.

FenStar


quality posts: 16 Private Messages FenStar

I also think that this would be a major headache for woot.

Still single, can't imagine why.

FritoBandito


quality posts: 1 Private Messages FritoBandito
ptrively wrote:...you can offer to return the warranty money (if it's unused) at the end of the warranty period in the form of Woot Credit...



Best idea posted.

If the warranty goes unused, you get a 100% credit of the original purchase price to be used on any other woot merchandise.

This is a slam-dunk.

My Legacy of Craps: 5/9/08, 10/23/08, 3/27/09, 5/26/10, 9/14/11, 10/12/11, 11/9/11, 12/6/11, 1/19/12

Snapster


quality posts: 16 Private Messages Snapster
FritoBandito wrote:Best idea posted.

If the warranty goes unused, you get a 100% credit of the original purchase price to be used on any other woot merchandise.

This is a slam-dunk.


Sadly, if the cost of unused warranties didn't subsidize the cost of acted on warranties the program becomes "buy a backup at full price" If you want, you can do this now and then sell the backup later if you don't need it

spriteright


quality posts: 0 Private Messages spriteright

i fixed pcs for a living and to tell u the truthon some items u do need the extended service. i use to work for ccity and people would come in for a power supply replacement, motherboard replacement and end up buying a new pc. its man made its going to I am an un-original person even though i know how to fix most things i get the warrany just so i dont have to deal with the hassell