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Extended Warranties

post #1 of 6
7/7/04 at 5:56pm
Thread Starter 
The thing that annoys me about extended warranties, specifically Alienware's, is that they rip you off. Did you know that Best Buy makes over 80% of its revenue off extended warranties? It doesn't even do any work for it; they outsource that work to a company called NEW (something extended warranty). Say you buy a warranty for $200 bucks. Best Buy gets $100 pure proft, the outsourced company pays an insurance company $50, and the company pockets $50 for itself (not too shabby for just organizing the work). Alienware probably doesn't even outsource the warranty, so they make a lot of money off these warranties. A second year for $194 more dollars?! I can understand the $70 for the 3rd year, but the second year should definitely be close to, and less than, the $70. Not only should the computer last more than a year, for free, but the profit margin on this is enormous. Alienware's stuff is all so expensive anyway however, that I doubt they are up to 80% revenue on warranties...maybe like 50%. The sad thing is, if I get the new, small Sentia, I'll probably get an extended warranty, just because I can't afford to have it die before 2 years have passed. It's just disappointing.
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post #2 of 6
7/7/04 at 7:24pm
Thread Starter 
I forgot to mention that Best Buy actually takes the proceeds it makes and filters it down to the consumer by selling items very cheap for little profit, but I would assume Alienware isn't doing that as everyone seems to say that their goods are overpriced.
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post #3 of 6
7/7/04 at 7:29pm
Hello chamith7:

I understand you may be concerned about Alienware's warranty just by seeing how another company does their warranty.

When a customer purchases an extended warranty, they do so to have the peace of mind that their system is protected. If an issue were to arise during their warranty period, they can easily call tech support to help them out with their issue. If the issue can't be solved over the phone or a part has gone bad, Alienware pays for the shipping both ways, fixes the issue or replaces the part, and sends the system back to the customer as if it were brand new.

All our tech support and repair services are done by Alienware at Alienware.

If you have any other pressing issues you would like to ask about, do not hesitate to do so.
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post #4 of 6
7/7/04 at 8:12pm
I think Alienware's warranty is VERY good. Good performance and good work comes at a price. Alienware has treated me very well, and I have never ran into any issues. If I had the chance, i would have purchased the 3 year warranty instead of the 2 year one. Sure, Alienware is expensive, but for what I go, it was well worth it!
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post #5 of 6
7/7/04 at 8:21pm
Thread Starter 
I'm sure the actual warranty is good, it just comes at a rather high price; my point for posting was just that these warranties are actually pretty interesting and I don't think most realize how they work.
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post #6 of 6
7/8/04 at 12:11am
That’s true. Because if you look the AW warranty, actually is very good, but the bad part is that for example you get the 3yrs warranty and you also got a NEC LCD 30" screen and something happen, you have to call NEC because AW will not cover it, and is the same for speakers, printer, mp3 player, well everything not branded AW...
So... it has also a dark side...
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