Before I put down some numbers, I want to say this: I don’t care what people think about warranties. Your opinion is as good as anyone else’s and you can think what you want. And it’s not because you think that warranties are stupid and a waste of money that you should judge people who were served well by warranties in the past. They have to right to think differently and it’s their opinion. Now on with some facts.
This document was published by Future Shop in early November. It’s used by employees in different departments to show customers how the warranties could benefit them in the future. I’ll just copy/paste the information for people reading this blog. This information and most of the numbers provided are only for a period going from March 2010 to October 2010.
“In the last 12 months, we’ve REPLACED over 6800 televisions, 6200 laptops/desktops, 1600 major appliances, 3100 digital cameras and 13900 cellular phones under PSP and PEP. Between March 2010 and September 2010 (7 months), our Future Shop locations have written off $13,641,595 (at net cost) of product that has been approved for exchange under our PSP and PEP programs.
PSP repairs performed March-October 2010 JUST through out tech rooms:
- Laptops: 44249 units, cost of repair: $8,601,208
- Gaming Systems: 9803 units, cost of repair: $831,401
- iPods: 6693 units, cost of repair: $325,815
Between June 2010 and October 2010, over 10,000 claims have been made under our PRP program, resulting in $1,409,889 in Gift Cards being issued to our customers.”
Now, you may still continue to decline these services and you might keep on saying that warranties are a waste of money. But facts say otherwise. And also remember that it’s not because you purchased a product with warranty and never had to use it that it was a waste of money. Not all products break. But when they do, it’s good to remember that hundreds of thousand units have to be repaired/replaces every year, and that’s only at Future Shop. Now if we were to add up Best Buy, The Source, Stereo Plus, The Brick, Sears, and all the places that sell electronic products… well that makes for a lot of defective products.