Harvey Norman Warranty Hard Sell

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623 posts

Ultimate Geek

#562674 29-Dec-2011 21:34

I thought I'd mention a good experience with an extended warranty.

About ten years ago I bought a PS2 from Farmers (yes Farmers) and got an extended warranty with it. They gave me a couple of stickers with a phone number and a code on them and told me to stick one to the bottom of the console. About three years later it died (can't remember the cause). I phoned the number and they asked for the code, they then asked me to package it up for a courier to pick up and it was returned to me less than a week later all fixed.

That in my mind should be how an extended warranty should work.

retailslave

8 posts

Wannabe Geek

#562675 29-Dec-2011 21:37

Hobchild: I thought I'd mention a good experience with an extended warranty.

About ten years ago I bought a PS2 from Farmers (yes Farmers) and got an extended warranty with it. They gave me a couple of stickers with a phone number and a code on them and told me to stick one to the bottom of the console. About three years later it died (can't remember the cause). I phoned the number and they asked for the code, they then asked me to package it up for a courier to pick up and it was returned to me less than a week later all fixed.

That in my mind should be how an extended warranty should work.

Totally agree. Some of the below $400 and $500 warranties work like that. It's automatic replacement with vouchers or a new unit and it's similar to the experience you described. I remember buying an iPod with an extended warranty and it died after 2.5 years. Rang up the number they gave me, and they sent me gift vouchers out the next day. The best thing is that they didn't even ask for the broken one back!

LennonNZ

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#562676 29-Dec-2011 21:39

Extended Warranties are confusing at times..

For example..

- I bought a TV 2 years ago (and I got a 5 year extended warranty)
- I was told a 1 year manufactures warranty.
- I went into where I got it from and asked for them to fix it as it was (I presumed ) under extended warranty
- They gave me the details of the extended warranty to ring so I did
- They (the extended warranty people) called me back and said sorry its still covered under the manufacturers warranty and they cannot help at all and it was only a 3 year extended warranty!!
- So I rang up Samsung and they said yes.. it had a 3 year man warranty and they will fix it (all good. Samsung did a good job)
- So I checked the receipt and it said a 5 year extended warranty (and the sales person said it was)
- The TV already had a 3 year warranty (person who sold to me didn't know) so I get 5 more years after the end of the manuf warranty (7 Years?) or was the extended warranty a waste of time and I can ask for my $$ back ??
- And then the 5/3 year extended warranty problem? If only 3 years which matches the man warranty I can get my $$ back?

- If the man warranty was 1 year and then Samsung changed if after I got it to 3 years due to know reasons (The reason it broke was Popped Capacitors) .. the extended warranty is useless (money back?)

ARGHHHH.

retailslave

8 posts

Wannabe Geek

#562680 29-Dec-2011 21:45

LennonNZ: Extended Warranties are confusing at times..

For example..

- I bought a TV 2 years ago (and I got a 5 year extended warranty)
- I was told a 1 year manufactures warranty.
- I went into where I got it from and asked for them to fix it as it was (I presumed ) under extended warranty
- They gave me the details of the extended warranty to ring so I did
- They (the extended warranty people) called me back and said sorry its still covered under the manufacturers warranty and they cannot help at all and it was only a 3 year extended warranty!!
- So I rang up Samsung and they said yes.. it had a 3 year man warranty and they will fix it (all good. Samsung did a good job)
- So I checked the receipt and it said a 5 year extended warranty (and the sales person said it was)
- The TV already had a 3 year warranty (person who sold to me didn't know) so I get 5 more years after the end of the manuf warranty (7 Years?) or was the extended warranty a waste of time and I can ask for my $$ back ??
- And then the 5/3 year extended warranty problem? If only 3 years which matches the man warranty I can get my $$ back?

- If the man warranty was 1 year and then Samsung changed if after I got it to 3 years due to know reasons (The reason it broke was Popped Capacitors) .. the extended warranty is useless (money back?)

ARGHHHH.

I'd definitely go back and say you were misled and you wanted it refunded under the fair trading act?

yumcimil

177 posts

Master Geek

#562690 29-Dec-2011 22:13

Uh guys, the bit where you summon their manager? The last two times I've bought a TV have been dealing with the duty managers at Harvey Norman and JB. Both were extremely aggressive with the hard sell on the warranty, to the point where the JB guy was actively badmouthing the product's reliability.

At least the HN guy conceded that I'd win, but that the extended warranty avoids the hassle.

maoriboy

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#562691 29-Dec-2011 22:16

Loismustdye: was at a BBq where there was a number of salespeople from a local retail electronics store joking about how many warranties they had sold, and the fact that the person who sold the most at the end of the week got a moro bar from the manager.

Not sure about a moro bar but I'd sure sell one for a chocolate fish :-)
As for incentives, if I were a commission based salesperson on $13.50 an hour I would certainly try and sell one if it meant an extra $10 in my pay packet. Benefit to customer? Peace of mind for the next 2 years knowing that if their purchase broke down that it will be fixed without the hassle (and yes for lots of ordinary people, claiming under the CGA IS a big hassle) of worrying about getting it covered under the CGA

doctormaxim

102 posts

Master Geek

#562695 29-Dec-2011 22:29

LennonNZ:
doctormaxim: Being a salesperson myself, I have seen multiple times where an extended warranty has actually benefited the customer. Their phone has broken down 16 months into having it and they have been covered by the extended warranty they purchased with the phone.

However, I do believe there is a difference between selling an extended warranty and selling extended warranties ethically which seems to be more the issue here.

How did it help them? How long do you think the phone should last then? less that 16 months? If the person didn't buy the "extended" warranty you wouldn't of fixed their problem under the CGA for the 16 month old phone?

It helped them get their phone fixed up quick smart without any hassle. It's really not my place to say how long a phone should last, unfortunately alot of people trash them and wonder why it breaks down.

However, I do still think there is place for them but trying the hard sell and saying "don't come back here if you have any problems" is an attitude I don't take part in at all. At the end of the day, customer service is the most important aspect of my job and if thats done well, sales targets will take care of themselves.

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Detruire

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Uber Geek

#562697 29-Dec-2011 22:39

alasta: Most big box retailers seem to be obstructive and slow to react when it comes to CGA claims. I'm not condoning it but it sounds like the salesperson was just stating the facts, albeit rather unprofessionally.

This is exactly what I thought when I read the OP. Whether intentionally or not, I think he merely told you the truth.

rm *

LennonNZ

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#562700 29-Dec-2011 22:44

It helped them get their phone fixed up quick smart without any hassle. It's really not my place to say how long a phone should last, unfortunately alot of people trash them and wonder why it breaks down.

However, I do still think there is place for them but trying the hard sell and saying "don't come back here if you have any problems" is an attitude I don't take part in at all. At the end of the day, customer service is the most important aspect of my job and if thats done well, sales targets will take care of themselves.

Let me put this another way.. What does a sales person do (or trained to do which is the important thing) if someone came back with the same phone under 16 months and wanted it fixed under the CGA? (when they didn't buy an extended warranty)

You say "Its really not my place to say how long a phone should last"? So who does?. This is the important thing about the CGA. There is no time frame specified. You tell them to go to the small claims court to work this out as you/whoever cannot make a decision and then everyone looses out (including the company who they work with as they have to send someone to small claims to defend the claim)

gzt

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#562705 29-Dec-2011 22:52

Consumer Guarantees Amendment Bill - First Reading

This is the same bill which fixed the lack of CGA if winning an auction rather than buy now. If retailers have not been training for this, there is liability here:

"This bill provides that consumers must be informed about whether an extended warranty they are considering purchasing provides any benefit, right, or convenience that is greater than their rights under the Consumer Guarantees Act. The bill also provides for a cooling-off period, once an extended warranty has been purchased. This will allow consumers to reconsider whether to continue with the extended warranty, and if they decide not to do so within the cooling-off period they will be entitled to a full refund".

Dunnersfella

4086 posts

Uber Geek

#562706 29-Dec-2011 22:53

All this for $13...?
If the guy gets 10% of the profit made from the warranty, assuming it's 100% profit - he's pulling in a clean $1.30.
Probably less than he loses out of his back pocket while selling a camera during Boxing Day sales (especially if no bag/battery/SD card) was purchased.

mattwnz

20141 posts

Uber Geek

#562712 29-Dec-2011 23:07

yumcimil: Uh guys, the bit where you summon their manager? The last two times I've bought a TV have been dealing with the duty managers at Harvey Norman and JB. Both were extremely aggressive with the hard sell on the warranty, to the point where the JB guy was actively badmouthing the product's reliability.

At least the HN guy conceded that I'd win, but that the extended warranty avoids the hassle.

You should have said that you were now concerened about the reliabilty and quality of the product, and that you had now changed your mind about purchasing it after what they had said.

s.joseph

587 posts

Ultimate Geek

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#562713 29-Dec-2011 23:12

Dunnersfella: All this for $13...?
If the guy gets 10% of the profit made from the warranty, assuming it's 100% profit - he's pulling in a clean $1.30.
Probably less than he loses out of his back pocket while selling a camera during Boxing Day sales (especially if no bag/battery/SD card) was purchased.

If you look carefully how warranties work they aren't 100% profit at all, far from it. Most of the time they will be run from a seperate insurance company not the actual retail company itself. I have worked as a salesperson and can tell you that much.
Warranties are more for peace of mind and there are some items where it is useful more than others.

I know that the Harvey Norman warranty covers stuff like wear and tear, dust condensation and other things like that which is quite cool and it covers more than what cga would, I'm unsure about other retail companies though.

mattwnz

20141 posts

Uber Geek

#562715 29-Dec-2011 23:12

Bee: Dont the staff get paid commission for selling the extended warrantys??? is why they push so hard...

Target AND Consumer will tell you - dont pay for an extended warranty pretty much ever - its not illegal but it ought to be!

after more than 12 months do ?you even know where the receipt is to claim the extended warranty????

I am pretty sure that the laws regarding extended warranties have changed, or are about to. The only tinme I think when an extended warranty is sometimes a good idea, is when you are purchasing for business use, as it is then not covered by the CGA.Although you are still protected by the sale of goods act.

My only experience with purchasing an extended warranty hasn't been good. I actually got less protection than the CGA, as I had some headphones fail, and the warranty company said that headphones were considered as 'consumables' so weren't covered by the extended warranty. I instead got them replaced under the CGA by the retailer.

Loismustdye

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#562724 29-Dec-2011 23:34

Actually the only thing I would buy a warranty on is a mechanical warranty on a 2nd hand vehicle from a car yard, when repairs can easily number in the thousands for a vehicle that may cost only 10-12k it's a small piece of mind.

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