In case you missed it, this weeks’ episode of Fair Go featured the hassles of extended warranties for electronic goods. In a lot of cases, people are being upsold into purchasing extended warranties for electronics goods, only to find that when they try and claim under these warranties the hassle involved can make them lose the will to live and they were probably paying again for what would have been covered automatically under the Consumers Guarantee Act. I can understand. Well, I can understand both sides of the story really – from a merchants’ point of view electronic goods sales involve very low margins whereas the profit margins on the Extended Warranty sales are huge, hence the incentive to sell them. It’s the same with travel insurance you purchase through your travel agent – commission on your airfares is low – but the commission on Insurance sales is huge!
I can understand the consumers’ point of view also – I spend hours (literally!) on the phone sorting out warranty claims for customers – that’s part of my job and part of the service that we offer to our customers. So, I can understand the sheer frustration of trying to get some action, usually via an overseas Call Centre to whom you have to spell every word you say…
There is no short answer to this problem, other than to know that if your electronic purchase was for personal use the Consumer Guarantees Act states that the goods should be ‘Durable and last for a reasonable time.’ Be aware that the Act does not cover goods purchased from a private seller or goods purchased for business use. In the case of a business purchase, an Extended Warranty may well be a worthwhile purchase, however before you pay out make sure you are aware of the details of the manufacturers’ warranty that comes with the goods. For example, most of the computer monitors we sell come with a 3 year Warranty as standard.
So this has got me thinking…..for the good of mankind and because we understand the pain involved, if you have a warranty repair that needs organising for a computer or related item, give us a call, even if you didn’t purchase it from us bring it to us and we will organise it for you. No catch, just give us a call..