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IlDuce: Also as another separate question, for years now when buying from various large chain stores, when the sale is almost clinched and I ask about cost and duration of extended warranty, they almost universally say "oh thats $140, but you can have it for $100", etc.
One place I went to yesterday was all righteous about it and said all the people who have ever done that should have been sacked by now as its a serious breach in company policy, and that those prices cannot be discounted under any circumstance.
So behind the scenes whats going on?
Back in the days when I worked for one of the big chains we had a huge profit margin on extended warranties and a miniscule margin on computers. So, essentially there was a lot of room for us to discount the extended warranty as long as we still had enough gross profit to make the overall sale worthwhile. We were required to heavily pressure customers into purchasing extended warranties as it was barely worthwhile for us to sell a computer without an extended warranty.
Admittedly this was a few years ago now, but I'd be surprised if things have changed significantly.
