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      04-16-2019, 04:02 PM   #6
Joe240
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Here’s the thing about retailers. They have return policies to cover the product within a specific time period. In best buy’s case, 15-30 days on most everything in the store, some are 7-10 days. Here’s how the return time frame is selected: Is the item portable and desired for trips? If yes, 7-10 days. If no, 15-30 days.

This is because people game the system and buy stuff specifically for a plane or car ride, short vacation, etc. and then return it within the time period and get their money back. This now causes Best Buy to either sell the item as open box and lose money, or the system forces them to return it to the mfr where if it is determined as functional, then the bill is sent to the store to remanufacture the product to like new. Either way, the returns can cost the stores money. Put overhead on top of running the store and employees and it’s costing them more than the product is worth.

In a time where online shopping is putting stores out of business, retailers have to protect themselves the best they can, and return time frames and stipulations is one of them. Walmart is a pretty huge exception because they aren’t a specialized store such as Best Buy. Walmart makes so much more money on other items to take the hit on electronics and other items. But even then, Walmart’s return policy reflects similarly to other retailers.

In the US, it is required for manufacturers to provide a 1 year manufacturer warranty on new products at a minimum to protect consumers from buying overly defective products. ***NOTE I SAID MANUFACTURER*** Best Buy is not the manufacturer for the PS4, Sony is. They covered the console for the first 30 days, but beyond that Sony is responsible to repair the console for you.

Stores offer extended warranties. Best Buy offers Geek Squad protection on their electronics where they will transfer the responsibility of the warranty to themselves, but that’s additional to the product and usually at a fair price. $300 PS4 protection plan is usually around $30 (5-10% of product price). They do this to offer more convenience to the customer where they can bring in the console and have it repaired (although it usually needs to be sent out to a repair facility where parts are readily available). Either way, them taking on the liability means they need to be compensated in some way. Same way auto insurance and homeowners insurance isn’t free, your extended product protection isn’t free. Another consideration is these extended warranties cover more than manufacturer defects, they cover things like ESD (electrostatic discharge) and surge protection as well.

Yes, extended warranties usually aren’t cashed in on items. But like life insurance policies, when you do need it, it’s a nice thing to have (never a requirement). But this is how these stores make the business case for these programs and same thing with insurance agencies. The many who don’t cash it in help the business pay for the few that do cash it in. The warranty is there to provide peace of mind to the consumer that SHOULD THEY NEED IT, it is there. This is the case for all warranties.

And just like the return policies, people abuse these warranties as well. Here’s a PERFECT example: Best Buy’s Geek Squad Protection on cell phones would cost + or - $100. It covered accidental damage such as cracked screens, water submersion (because females enjoy putting phones in back pockets and dropping them in toilets when they use the bathroom), defective batteries, and accessories that came with the product (power cords and headphones). Depending on the plan (1-3 years), consumers would purposely break their phones so they could cash in the protection. What they counted on is the caveat on the protection plan that states “If Best Buy is not able to repair the device or replace it with the exact same product, they would either receive a credit or newer version of the product.” Guess what the most popular phone was at the time? If you guessed iPhone, you’re a winner. Now guess what phone over the years has become increasingly difficult to replace screens on and also has utilized more glass? If you guess iPhone again, you’re awesome. Samsung’s Galaxy in recent years has also become a culprit here though. People purposely breaking their phones in hopes of upgrading to the newest version every year caused Best Buy to revamp their cell phone protection policy. Now the plan costs you $1-200 at purchase, and if you need to claim the warranty, depending on what is needed, there is a deductible... SOUNDS AWFULLY SIMILAR TO CAR INSURANCE FRAUD, DOESN’T IT? But still, figure $300-400 total for the protection plan and deductible and you could potentially have a new phone every year so people still purposefully break their devices in hopes for an upgrade. Because of this, one day in the future, retailers will start running credit checks before pricing a protection plan and the prices will vary from consumer to consumer, retailers to retailer, and “warranty claims” will become a factor of your credit score to see if you’re a person with integrity or not.


TLDR: OP’s appalled belief in Best Buy and other retailers is misplaced.
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