CurtPalme.com Home Theater Forum

[Tim in Phoenix]

Guys!



I have a client asking about extended warranties on his Marquees. Anyone involved with, or who purchased an Extended Warranty on any electronics, I would appreciate a copy to evaluate the verbiage used therein.


My e.mail is........ ehometech@earthlink.net


Thanks



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[stefuel]

Are you actually considering offering a "extended warrantee" on used or re-furbed electronic equipment....of any kind?
If so, I think that will be a first. If you are offering anything more than 90 days, the desert sun has melted your brain.

If the client insists on it, make it so expensive that he passes on the "extended warrantee"

[Tim in Phoenix]

I have refurbed and resold over 150 projectors in the last nine years. Every one shipped out with a minimum of a ninety day warranty. Only two of the projectors developed significant problems, so I feel pretty good about this.

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[Curt Palme]

I agree, if the set runs past the first 50-100 hours, new or used, it will run for a loooong time.

Tim, what I would do is check the % rates of consumer extended warranties. I bought a Sony $129 MP3 boom box for my g/f's kid 2 days ago, and a 2 year warranty was $34.95. That makes it about 25% of what the thing is worth new. Exclude CRT wear, and I think you're covered.

[Curt Palme]

I agree, if the set runs past the first 50-100 hours, new or used, it will run for a loooong time.

Tim, what I would do is check the % rates of consumer extended warranties. I bought a Sony $129 MP3 boom box for my g/f's kid 2 days ago, and a 2 year warranty was $34.95. That makes it about 25% of what the thing is worth new. Exclude CRT wear, and I think you're covered.

[Tim in Phoenix]

Guys

The projectors in question are 8500 Ultras, six or seven years old, either in use or standby continuously, looking to charge $1200 a year each, tubes excluded. Customer pays for my plane ticket and lodging, nine projectors at that site, this should work nicely.

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[mp20748]

Hey Tim, sounds like a commercial Service Contract. I'm not familiar with that type of customer having an "Extended Warranty"

If it's a commercial customer than the type of service contract would be a PM (preventative maintenance), which is the common/standard lingo for Maintenance Contracts.

Your price of $1200.00 for each projector could be reasonable, for labor only. If parts are included, meaing you're be supplying all parts, then that numbers goes up substantially.

You'll also have to include travel and other cost.



So for one or each projector, you would need to determine how many visits per year to do a PM. Most likely one or two depending on the usage and the importance they place on having them up and running.

You'll also need to include repairs, or failures. Be it if you diagnose a problem over the phone and send out a board, or if you had to arrive on location to troubleshoot and repair a problem. In this case, you may want to have a fully working spare that you can ship to the location for back-up... again, this level depends on their importance to keeping them all operation as much as possible. Some facilities do not want down time.

This type of service maintenance is put in terms of a PM Contract. It's annually, I've never seen one extend beyond a year. It's usually that way because most commercial service contracts are either renewed (or looked at for renewal) annually.

[stefuel]

"Extended warranty" is nothing more than a glorified name for a insurance policy. Insurance companies play the numbers game. Sell a bunch of policies on quality products or services that rarely need payback and you'll make money. But you have to sell a lot of policies to do it. There also has to be rules to follow. In most cases, product tampering voids a claim. How many Marquees on this forum have not been tampered with Most here are so mod crazy that they'll start modding a broken projector before they even get it running. Don't laugh, I've seen it first hand and on this and AVS forum.

Hobbiest get a bumper warrantee only

Like Mike said, You should be looking at service policies. However, those also require numbers to be profitable.

[Tim in Phoenix]

My client has no connection to home theater or HT forums.


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[mp20748]