How to Make a Profit With Frigidaire
- Thread starter fridgiman
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Similar to buying shoes; When was the last time you bought a pair without a sales pitch for leather cleaner, sole restorer, polish and extra shoe strings, LOL?
To Fridgiman from Frigilux: thanks for posting!
To Fridgiman from Frigilux: thanks for posting!
Making a profit.
When I worked for Sears selling appliances part-time (at night after a day-job as an accountant), I was forced to sell "Maintenance Agreements" which were "more than extended warranties because..........."
BLAH BLAH BLAH.
Service will come hold your hand with any tiny problem, and soothe your nervous little heart/head, and will replace the appliance if can't be repaired.
Overall, very expenisve and ridiculous overall UNLESS YOU HAVE A MACHINE DESTINED TO BE A CLASSIC.........
anyhoo, ALL OF THE PROCEEDS OF THIS PROGRAM ARE PURE PROFIT TO THE INDIVIDUAL STORE THAT SOLD IT TO YOU.
When I worked for Sears selling appliances part-time (at night after a day-job as an accountant), I was forced to sell "Maintenance Agreements" which were "more than extended warranties because..........."
BLAH BLAH BLAH.
Service will come hold your hand with any tiny problem, and soothe your nervous little heart/head, and will replace the appliance if can't be repaired.
Overall, very expenisve and ridiculous overall UNLESS YOU HAVE A MACHINE DESTINED TO BE A CLASSIC.........
anyhoo, ALL OF THE PROCEEDS OF THIS PROGRAM ARE PURE PROFIT TO THE INDIVIDUAL STORE THAT SOLD IT TO YOU.
I would be curious to see the stats about those service agreements to see how many machines actually need repairs, versus how many service agreements sold. I thought they were a pretty good deal, considering the going rate for non-contract repairs at Sears was absloutely insane! The service agreement would pay for itself in one visit for a repair. Of course, most people kept the machines for several years, and renewed the service agreements yearly...some long enough to pay for a whole new machine purely off the money paid to the service agreement. Now, we are pretty good with mechanical stuff, and repair things with a quick trip to the parts counter, but many people don't want to or don't have the knowledge to do this, and labor costs for on-site home visits is pretty darned expensive, so it's probably more worthwhile for them
danemodsandy
Well-known member
I bought my mother a Lady Kenmore dishwasher in 1974, which she kept for about 20 years. She kept a service contract on it, and there is no WAY Sears did not lose money on the deal. They were out many, many times over the years.
whirlcool
Well-known member
I believe that Consumer Reports did a study of Extended Warranties several years ago, and they found that they were very good profit centers for the stores selling them.
The advice was that if you bought a decent brand anything, you shouldn't need one of these. But this was definitely before the current crop of front loaders hit the market.
When we bought our Sony TV a few years ago the salesperson really pushed the extended service contract ($175.00). Sure enough, 28 days after we bought the set the power supply gave out. The store fixed it under it's own warranty, but the repair guy REALLY pushed an extended warranty on us as he was fixing the set. We didn't buy it and the set is still going strong with no further problems.
Personally, I never buy these things. But I probably would if I bought a FL machine, considering the potential for high repair costs.
The advice was that if you bought a decent brand anything, you shouldn't need one of these. But this was definitely before the current crop of front loaders hit the market.
When we bought our Sony TV a few years ago the salesperson really pushed the extended service contract ($175.00). Sure enough, 28 days after we bought the set the power supply gave out. The store fixed it under it's own warranty, but the repair guy REALLY pushed an extended warranty on us as he was fixing the set. We didn't buy it and the set is still going strong with no further problems.
Personally, I never buy these things. But I probably would if I bought a FL machine, considering the potential for high repair costs.
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