About that Staples Warranty

Well, I finally RTFM (or brochure – I have an excuse: I’m a guy; we don’t RFMs) and it turns out that you get your Warranty purchase price back, not in real (that is cash) money, but in a Staples cash card, redeemable, of course, only at Staples.  So if you don’t give Staples their margin on previously purchased service within 2 years, they get it in purchased products after 2 years.

And that’s brilliant!    I don’t understand why more companies don’t do this.  For example, when I buy tires, I always turn down the “extra protection plan” because I know it’s an insurance product and I’m better off self-insuring on all the tires I’ll buy over my lifetime.  But if I got that plan’s purchase price applied to my next set of tires if I didn’t use it, I’d take it every time.  It’s win-win.

This entry was posted in customer loyalty, customer satisfaction, Pricing, retail and tagged , , . Bookmark the permalink.

One Response to About that Staples Warranty

  1. Mitch/Ralph says:

    Many years ago there was a study done on car battery warranties, and as I remember, they found that most car batteries failed a few months prior to the warranty ending. Since the warranty was pro-rated by the life of the battery, the company’s risk was low and people tended to collect on the warranty and bought another battery from the same company and got a small discount. The company retained the customer for a minimal marketing expense.

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