What Appliances Should You Choose?

These are decisions only you can make. You know or will determine what you need, which you will balance against what you want and what your budget will stretch to. As a general rule, choose the best quality you can afford. Take advice from friends and perhaps a consumer organisation. Do not forget to look into the guarantee. Check also the cost of an extended guarantee. Some suppliers offer a longer guarantee than others, up to 5 years, and the cost of extending a short guarantee by even a couple of years can be high.

Why do you suppose it is that not all manufacturers offer a 5-year guarantee?

Why will you probably be offered an extended guarantee?

When comparing prices you do have to be careful to factor in the guarantee. Extending a guarantee to a reasonable length of time can be very expensive and turn what seems to be a bargain into a costly appliance. For instance:

If product #1 has a 1-year guarantee and product #2 has 3-years, find out how much it would cost to extend the guarantee of product #1. You might be surprised to discover how much you can save by choosing an appliance with a longer guarantee. There is one product range that offers a 5-year guarantee as standard on most items. Why do suppose that all manufacturers and suppliers cannot or will not show such faith in their products?

There are those who suggest that there is a link between the cost of the product and the cost of the extended guarantee. Everybody is careful to check the ticket price and some even negotiate that down. This makes the appliance market an extremely competitive one where profit margins are squeezed to the bone.

Many people are concerned to ensure that a breakdown in the first few years will not incur expensive repair costs. This concern makes them open to the salesperson’s suggestion to buy an extended guarantee. This offer is always made as you are paying for the appliance. Your purse or wallet is open and they know that you might just be tempted on impulse. Since the profit margin on the appliance has been so severely squeezed by competition what better way to make up some of the lost profit than by selling a highly profitable extended warranty?

There are many who suggest that a retailer can make more profit from selling the extended warranty than from selling the appliance. Could there be some truth in this? Would retailers prefer to sell products with short guarantees so they can make the added profitable sale of an extended guarantee? Would the manufacturers play along with this? You decide.

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