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Discussion Starter · #1 ·
I was thinking........

If I was to visit a car dealership, and observe as the salespeople offered a new program to it's customers, whereby they can save $X,XXX.xx off the purchase of a new vehicle if they accept it with no warranty. No paper work, pay by cash, no title, not even a recognizable brand name, etc. Where would the discount need to be to get customers to feel confident in their purchase.

I would assume that no legitimate buyer would feel like this is a smart purchase. YET... they feel safe doing this same exact thing when it comes to remodeling their homes.

A good contractor that does a job with the best techniques and products available, may only need to bank 2% to fund future warranty work, but that does not come close to the cost of all the extra steps and products delivered during the process of the job that eliminates most potential warranty claims.

So I am wondering what the perceived value of a warranty is for a new vehicle, and how can I apply that value to my products.
 

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I'm my eyes warranty's mean nothing. All the claims i have had to make be it from laptops, TV's, Vehicles, Furniture, Kitchens and so on have all be denied in one way or another. Even when taking out some of these so called unlimited extended warranty's. I know i would def pay less money not to have a warranty.

Also when ever a sales person starts telling me about how great their so called super warranty is it puts massive doubt on my mind to how reliable this thing is going to be. If the product has been built properly then warranty's would not be needed in the first place.
 

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I'm my eyes warranty's mean nothing. All the claims i have had to make be it from laptops, TV's, Vehicles, Furniture, Kitchens and so on have all be denied in one way or another. Even when taking out some of these so called unlimited extended warranty's. I know i would def pay less money not to have a warranty.

Also when ever a sales person starts telling me about how great their so called super warranty is it puts massive doubt on my mind to how reliable this thing is going to be. If the product has been built properly then warranty's would not be needed in the first place.
Salesmen don't push the warranty because the vehicle is inferior, they psuh it because they make money off of selling the warranty, many times more than off the sale of the vehicle.

I looked at getting a laptop for my daughter when she turned 9 a few weeks ago, the laptop was $350, but they psuhed real hard to sell me a 2 year warranty for $200, I told the guy I would be better off just saving the $200 and buying a new laptop if my daughter broke it.

Plus dealing with warranty companies is just as bad if not worse than dealing with mail in rebates.
 

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Discussion Starter · #4 ·
I am not suggesting offering an extended warranty, I am trying to figure out why a customer feels safe buying without a warranty, or from someone who may nor be around to stand behind his work.

I want to make a comparison to buying a new car to help customers see the difference in value.
 

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The customers are "trained" to expect warranties with some purchases but not with others.

It's expected that a new car will have a warranty. I doubt many would buy one without it.

But a used car...customers don't expect a warranty. Which may be why the 'certified pre-owned' warranty programs have become successful. Pay a premium for a used car that has been inspected. Gives the buyer the feeling that the car is like new.

However, most people will buy a house without a warranty.

I don't know...not much logic to it...
 
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