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Saturday, March 29, 2014

Consumer peace of mind - Part 1


You’re waiting in line at one of those big box electronic stores. You’ve picked out your 55” so-n-so wide screen / flat screen TV. It’s costing you a pretty penny ($799.95 to be exact; plus tax of course).  You hear the sales associate say next, you step up and she scans the TV and then she asks you “would you like to purchase the 2 year extended warranty for your new TV?”

What to do? What to do??? The sweat starts to roll down your forehead as you feel the eyes of everyone else waiting for service just piercing through you. The pressure is on.

“How much” you ask? $99.95 for the two year plan.


Wait…what???


Two year plan? But the TV is already covered for one year under the manufacturer warranty? So you want me to gamble a hundred dollars on the TV failing during its second year? But think about it. It could happen. Haven’t you heard all those stories of stuff failing just after the manufacturer warranty runs out? “Come on already” all the other customers are saying under their breath. Hurry,  the pressure is still on!!! What if? WHAT IF???



So, just for your peace of mind you answer yes and pay that extra $99.95. And wouldn’t you know it?  Three and a half years later is when the TV actually fails.



So what were you really insuring? Only your peace of mind. Now, do this all over again for your other purchases like…

  • Blu-Ray player ($19.99 for the 2 year ext. warr.)
  • Play Station 4 ($89.99 for the 2 year ext. warr.)
  • Touch-Screen Laptop ($239.99 for the 2 year ext. warr.)
  • Smart phone ($$239.76 for the 2 year ext. warr. – actually $9.99 per month x's 24)
  • Single-Serve Coffee Brewer ($19.99 for the 2 year ext. warr.)



The total price for all these plans just escalates. And your peace of mind only last for 2 whole years.



But what if there was an alternative? Yes your peace of mind is important and worth every penny… but what if you could just save some money and have, as a friend of mine likes to say, “more better” peace of mind?



Well there is… and I’ll have the answer for you.



To be continued…

Click HERE for part 2