Oooohh! The dreaded estended warranty game during the holidays. I've some friends who worked for some of the big chain electronics stores in the Ohio Valley and the tales they have told me about being pressured to sell this stuff. It was required of them to maintain a sales quota ratio, of sales with extended warranty(insurance)to straight sales. They hated it too.
Those who do sales for a living will often call it "selling the blue sky". The insurance is half or more of the value of the sales price(often 25% more than the store cost of the item). Asian electronics are quite cheap to buy in quantity and the mark up in retail is incredible. They can place a highball price on the item and claim it is on sale 20% off. If they can finance it for you, then they can more money yet on the item. Example: $250 dollar camera 20% off = $200. Cost of camera to store $80, gross profit after sale $120. Extended warrenty $125 or half of full price. Total cost if E/W is purchased $325.($245 gp now) Financed for 12 months at 9% will cost about another $20 with $22 per month payments. All this can be churned by a good sales person on a product originally costing his company $80. Thus an example of a 3:1 pr. So you can see why the stores push the clerks to try to sell this policy....and this is just a rough example of it too. JW --- Wilton Shaw <[EMAIL PROTECTED]> wrote: > Hello, > I'm in the process of purchasing a Fuji FinePix > S-3000 camera and the > salesman I talked to said I need insurance to > protect the camera. He > wants to sell me a five year plan for $50,00, which > is half of the usual > $100.00 charge that Fuji will ask me for after the > initial 90 day > protection is up. He says digital cameras can have > problems and > insurance is important. What do you think? > > Wilton > > > -- > G-List is sponsored by <http://lowendmac.com/> > and... > > Small Dog Electronics http://www.smalldog.com | > Refurbished Drives | > -- We have Apple Refurbished Monitors in stock! | > & CDRWs on Sale! | > > Support Low End Mac > <http://lowendmac.com/lists/support.html> > > G-List list info: > <http://lowendmac.com/lists/g-list.shtml> > --> AOL users, remove "mailto:"; > Send list messages to: > <mailto:[EMAIL PROTECTED]> > To unsubscribe, email: > <mailto:[EMAIL PROTECTED]> > For digest mode, email: > <mailto:[EMAIL PROTECTED]> > Subscription questions: > <mailto:[EMAIL PROTECTED]> > Archive: > <http://www.mail-archive.com/g-list%40mail.maclaunch.com/> > > Using a Mac? Free email & more at Applelinks! http://www.applelinks.com __________________________________ Do you Yahoo!? Free Pop-Up Blocker - Get it now http://companion.yahoo.com/ -- G-List is sponsored by <http://lowendmac.com/> and... Small Dog Electronics http://www.smalldog.com | Refurbished Drives | -- We have Apple Refurbished Monitors in stock! | & CDRWs on Sale! | Support Low End Mac <http://lowendmac.com/lists/support.html> G-List list info: <http://lowendmac.com/lists/g-list.shtml> --> AOL users, remove "mailto:"; Send list messages to: <mailto:[EMAIL PROTECTED]> To unsubscribe, email: <mailto:[EMAIL PROTECTED]> For digest mode, email: <mailto:[EMAIL PROTECTED]> Subscription questions: <mailto:[EMAIL PROTECTED]> Archive: <http://www.mail-archive.com/g-list%40mail.maclaunch.com/> Using a Mac? Free email & more at Applelinks! http://www.applelinks.com
