My nephew works at Sam Goody’s and he gets the Best Buy employee discount (Best Buy owns them). So I took him to Best Buy with me to get a dig. camera. Emplooyee discount is 5% over cost, so I thought I’d get a great deal on a $400 camera. Only would save about $25. I couldn’t believe it. I could get a better discount on-line. That means the on-line stores are getting a better deal from manufacturers than Best Buy. The salesman told us that the employee discount really pays off for other merchandise though, like TVs.
I just bought a new $450 digital camera from Best Buy, which was only about a $30 markup from the lowest internet price after shipping. I then looked at the 256 meg memory cards, which were only $99 on the internet…they were selling for $190+tax at Best Buy. Talk about accessory markup!
It has been my experience that if a salesperson offers you a business card then s/he is probably on commission. Since I have never recieved a business card from a B/B employee I always assumed they didn`t work on commission.
I do believe B/B will honor competitors advertised prices so if you feel you are getting the shaft, call them on it and point out the competitors price and they will meet it or beat it.
I did have a bad experience too with the service of a warranty at B/B. Turns out they LOST (how?) the computer we brought in and ended up replacing it with a new one, but not after much grief.
Interestingly, my experience at the new Canadian Best Buys has been very different; they ask once about the extended warranty and when you say no, they shut up. I bought a new TV there (well detailed in a Pit thread) and then at another Best Buy I just bought a digital camera for Mrs. RickJay for Xmas. In both cases, they asked once and never mentioned it again when I said “no, thanks.”
I think this may be a direct response to Future Shop, Canada’s other electronics superretailer, which developed a very poor reputation for being pushy about the extended warranty. I think it might be a deliberate marketing strategy by Best Buy to NOT be like Future Shop.
I guess I got off topic, but found this on the net:
" At Best Buy, management considers their employees their most important asset. They feel that if they do not treat their employees well, service will not be as helpful as they would want it to be. They place a high value on learning and growth and encourage their employees to excel in their fields. All employees of the store do not receive commissions for their sales, unlike their biggest competitor, Circuit City."
Lots more at:
http://homepages.wmich.edu/~j0oros/BestBuy.htm
What an unlucky post number you have HANDY – 13666.
IIRC, a few years ago I bought a printer from Best Buy for about $250. The 3-yr. service warranty was about half its price and the manufacturers was two years of that!
When I got the heavy warranty pitch, I said why would I want that. The way computer prices fall, in two years I can buy something twice as good as this for less money.
And I was right. The printer still works fine but if it breaks, I’ll go buy a better one for about $100.
Another hijack:
I used to work retail (4 years in various departments at Sears, from furniture to electronics and vacuums), and I hated selling those warranties, with one exception: if an elderly lady ever bought a vacuum, I’d recommend it, simply because the basic maintenance on a vacuum (changing the belt, cleaning the bearings on the beater-brush), while not difficult for an able-bodies person, can be very difficult for anyone with arthritis or other problems. For them to be able to bring it in to the store if they need any maintenance is a plus, and the agreements usually ran between $35 - $70 for two and three years, respectively; on a $200 - $400 vacuum, it’s a pretty good deal.
But for the most part, they are a ripoff, especially on things like camcorders, printers, etc. where the warranty cost for three years is more that a replacement unit would cost three years down the line.
And re: the OP, I believe Best Buy pays bonuses based on percentage of quota achievement for warranties, but I’m not positive.
BTW, having sold them before, when I get the pitch, I just say, “I used to sell these warranties, and no, I don’t want it.” Shuts them right up, usually, and if not, I just let them keep talking unless I’m pressed for time. They’re trying to keep their jobs, and I won’t begrudge them that unless they are rude or insulting (as in some of the incidents described here). My local Best Buy doesn’t push them too hard, though.
Why is an insurance policy “pure crap”?
Because the warranty which the manufacturer gives for free is usually enough to cover a person’s needs, no need to pay the store for more.
UnuMondo
Can we compromise and say they’re partial crap? Extended warranties (EW) may cover accidental damage that a manufacturer’s warranty (MW) does not cover. EW’s on refrigerators may offer to pay for food spoilage, which I doubt the MW will cover. EW’s might pay for routine maintenance that a MW will not cover. EW’s may give you a right to a new replacement if your broken device takes longer than X number of days to repair.
And so on.
The terms & conditions may vary from one retailer to the next, but if you opt to buy one, then nobody can tell you it’s crap if you felt that it was worth it.
They recently aired the Simpsons where Homer was made intelligent via removal of a crayon in his brain. Near the end, Moe is putting it back and the final test that it was in far enough was:
“Extended warranty, how can I lose?”
Clark Howard is very much against them.
I’ll have to agree with Attrayant on those points. Although purchasing an extended warranty means paying to protect against something which may never even happen, they often give coverage far beyond what the manufacturer’s guarantee offers.
My dishwasher cost £380GBP, with an extra £200 on top for the extended warranty. When the spray arm siezed up two years later, they sent someone out to fit a new one at no charge to me. Likewise, on the two occasions when some asshat slammed the kitchen door into it, they replaced the cracked control panels free of charge. Those three service calls would normally have cost me £75 each. So, in effect the warranty has paid for itself and left me £25 ahead to boot.
The only thing my warranty doesn’t cover is the silverware basket, wilful damage or cosmetic issues. Having said that, it would have been a total waste of money had I never needed to claim on it.
“Don’t ever buy the service or replacement plans because they are pure crap.”
I don’t agree. I bought one from Circuit City for two more years for a camcorder because (one reason) the clerk told me it included one cleaning of the camcorder each year too-free & from them. Also if anything at all happened to it, they could take care of it.
I have bought only a few relatively big-ticket items–my minisystem, my TV, and my computer. I bought the extended warranty for the minisystem, and it wasn’t a bad deal back then, but I never used it. My TV I refused. My computer, I refused as well, but when my power supply went from my Dell, it might’ve helped. The supply was 90 dollars, and I don’t remember the warranty cost. I was surprised, because I expect something to either break down within the first year, when it will often be covered by the MW, or it will take long enough that it’s cheaper and better to buy a new one.
Basically, it depends. I think when I buy another computer, if it is expensive enough, I will get the extended warranty. If I buy a new minisystem or a different TV, I won’t, unless it’s something that probably won’t come down for another few generations in price, like a plasma TV.
Asked and answered.