SUBMITTED: Thursday, December 01, 2005
POSTED: Thursday, December 01, 2005
Yes, it's sad to say, but most of what's said here by disgruntled consumers is true. I work at a very succesful Sears owned store(they own other companies, and will often buy up "independent" appliance dealers in town). Extended warranties(or, *cough*, Master Protection Agreements, as Sears calls them)are obscenely profitable, and that is why they are sold. Depending on what product they cover, the service record of that product, the typical cost of repairs for that product, and the cost of other types of (non-Sears) coverage that may be available to customers, such as home warranties throughn insurance companies, these "MPAs" may or may not be a rip off. I have often sat with customers, comparing yearly costs of home warranties to MPAs, and sometimes it is a better deal. Not often, but sometimes. The protection offered with an MPA is better than the manufacturer's warranty. On paper, anyway. Problem is, some of the "benefits" will never be realized by a customer. Like the yearly preventative maintenance check, which is a major selling point. Most people will never call to schedule these(the onus is on the customer), and Sears knows it(that's why they love rebates, too but that's another story). Even if you do call for your yearly appliance checkup, you are likely to be asked if there are any problems with your unit. If you respond in the negative, you may be discouraged from having service come and check your unit, EVEN THOUGH IT IS A SERVICE YOU HAVE ALREADY PAID FOR. I have also been told by service(when calling on a customer's behalf) that they will "get back to me", and most times they don't. Know this: all sears owned companies have a quota for warranty sales. Period. The pressure can be intense, especially when profits are running a little thin, like now(12-01-05 as of this writing). Jobs are threatened, people are transferred to non-commission(read: non-paying) departments. It is truly sickening. Store managers will lecture you about how valuable the MPA is to a customer, how you are really doing your customers a favor if you sell them these wonderful agreements. Then, they will buy a whole houseful of appliances from you WITHOUT BUYING A SINGLE WARRANTY. Where is the value now, hmmmmmm? The MPAs run concurrently to(supercede, actually) the manufacturer's waranty, NOT consecutively, as they do offer protections not found otherwise. However, I have heard other employees tell customers that they are purchasing YEARS of ADDITIONAL(i.e., consecutive) coverage. Not true. Sears employees are told they have to get 3 "no's" from a customer before they drop the subject of MPA's. Listen to thier pitch, you will hear the 3 no's. How disrespectful is this. You have 30 days to buy the MPA at the store level. After that, you can buy it from Sears service at a slightly increased price. I have heard some employees tell folks that the price will then DOUBLE. Also not true. When I have attempted to bring these dishonest practices to the attention of my superiors, I have been ignored or accused of"harrassing" the dishonest employees. This lying is tolerated and encouraged. I am proud to say, I sell very few MPAs, and will probably not work for the company too much longer as a result, despite being one of the top sellers in my store(the company I work for is Sears-OWNED, thus the pressure to sell MPAs was no-existent until 2 years ago. It has been steadily ratcheted up since). All I cn say, is that I will leave with a clear conscience. Don't automatically refuse all extended warranties, weigh the pros and cons. If your salesperson is not willing to HONESTLY evaluate these with you, If he seems intent only on forcing you into it, if he ddoesn't offer to call service on your behalf and apply necessary pressure when you request it, DON'T BUY FROM HIM. PERIOD. Also, beware of those who break a HIGH yearly price down into a LOW monthly, weekly, daily, etc. price. In sales, this is called "reducing it to the ridiculous", and it is nothing more than cheap manipulation. Good luck!