Common Sense Is Uncommon

Question Conventional Wisdom

The media is known for to propagating conventional wisdom. However, it pays to question what they are saying. The media and organizations, such as Consumer Reports, have written off most extended warranties. They claim stores earn about 50% or more gross profit margins on warranties they sell. Consumer Reports also argued that when appliances break, they usually cost about as much to be repaired, as an extended warranty would have cost if initially purchased.

The arguments are conflicting. Like all peddlers of popular opinion, many often fall into the trap of believing reported information provided by self-interested people and fail to question the facts. I always analyze language that sounds like it came straight off a press release. I am also skeptical about figures from surveys and research. I have worked in market research and I know information can be doctored or underreported. The samples may also not be representative or localized to one area or state.

Use Inaccuracies to Your Advantage

Scrutinize the subtext of content in the media or online and use their inaccuracies to your advantage. The media and others say very little or underreport about consumer advocate groups, such as the Consumers Union, which is a non-profit organization. They argue that there are products such as digital cameras and projection TV’s that deserve extended warranty consideration, as they are expensive to repair and require repairs frequently.

Laptops also fall in that category. Not only are they expensive and fragile, they leave us highly inconvenienced when these lifelines malfunction. Many of us carry our laptops and tablets with us at all times, which increases the risk an accident.

As a matter of fact, Consumer Reports latest research showed that many extended warranties offer better technical services than the products’ original manufacturer. To me, having peace of mind in knowing that all of my electronic equipment is covered is priceless.

The media and Consumer Reports have not mentioned the alternatives to point of sale retailers in store. These alternatives include online providers of service warranties such as Matrix Protection. Unlike in store plans, Matrix provides protection on all of your electronics up to 4 years old and any products you will purchase in the future.

Online providers also tend to be less expensive, as the price of the warranty usually varies between 12–15% of the product price while stores charge 20-30% or more. In addition, Matrix does not charge you for an extended warranty per each and every product you register. The amount of products you can have protected is endless as long as you continue to pay your low monthly premium.

Clichéd Wisdom

Conventional wisdom faces the risk of becoming clichéd wisdom the more it is repeated. Do your research. Shop around. Question popular opinion and check your terms and conditions to make sure you are getting value for your money. Never accept an offer for a warranty at the point of sale without going through the fine print. I recommend visiting and you will have to look no further.

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