Just bought a home theater system. I got the extended warranty for a little over NT$2,000 which extends my warranty by two years for a total of three years.
My system is a “theater in a box,” meaning that it’s a complete set with the amp/receiver combined with the DVD player and the 5.1 speakers rounding out the system. However, I purposely avoided the 5-disc player since I don’t like all the mechanical moving parts (of course more prone to malfunction than solid-state devices within the player and the speakers).
I’ve got a few days to void the extended warranty. I was originally planning on doing this (getting a refund on the extended warranty policy), but I would like to hear the opinions of others.
Yet at the same time, they don’t offer an extended warantee for nothing.
Freshly minted MBA/number crunchers are set to work calculating the exact % and cost failures over time for your particular unit. The price of the warantee covers that cost and a very healthy margin. If the company is clever, they’ve even trained thier salesforce to present the warantee to those very people with very low risk factors who statistically are less likely to have a failure and/or less likely to actually go through with a claim.
On the other hand, if you’re risk averse and think that you have a higher than avg. chance of a unit failure, then it may be worthwhile.
[quote=“Elegua”]Yet at the same time, they don’t offer an extended warantee for nothing.
Freshly minted MBA/number crunchers are set to work calculating the exact % and cost failures over time for your particular unit. The price of the warantee covers that cost and a very healthy margin. If the company is clever, they’ve even trained thier salesforce to present the warantee to those very people with very low risk factors who statistically are less likely to have a failure and/or less likely to actually go through with a claim.
On the other hand, if you’re risk averse and think that you have a higher than avg. chance of a unit failure, then it may be worthwhile.[/quote]
I think I’ve decided to keep the warranty. And it’s my knowing that this is a cash cow for most companies that has me hesitating. At the rate at which things change, I think I’ll need/want a new system in three years anyway. Thanks for the input from both of you.