Salesmen Pushing Warranties

So last night I took my daughter to Guitar Center to surprise her by trying out and buying her a new guitar. Go to checkout and the guys behind the counter want me to buy a protection plan that’s like 1/6 the cost of the guitar, and it’s not clear WHAT it covers. I politely declined…. Several times…. In fact, I even said “I’ve said no 5 times. I can just leave and go elsewhere.” I explained to them that I’m not a chump and I know how warranties are priced. He kept pushing the issue, so I asked him “What do you get if I buy the warranty?” because it’s clear there is incentive. He then said “It’s about what YOU get.”

Anyway, they finally accepted that they weren’t going to win this one and we left with a newly purchased guitar and no protection plans to go with it. This leads me to my question…. Do these employees get a cut of these warranties, given that they push so relentlessly? Are they required to achieve some quota of a percentage of instruments sold need a protection plan? It’s amazing how many times I can’t say no to these guys and they don’t get the message. Anyone have any insight?

I’m sure they had some sort of monetary incentive to get you to purchase the warranty. That sounds crazy though, I’ve never had a salesman push back after I say “no thank you” to a warranty. Not that I’ve purchased that many things at a physical store that have a potential warranty.

i’d have walked out and gone elsewhere. i hate pushy sales people.

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Yeah…it’s such a pita…I’ve encountered it at the rental car counter…and back in the day at best buy…I just keep saying “no” and if they ask “why?” I just say “I don’t want it”. I don’t want to get in a bleeping bleep argument, so I try not to give them any ammunition.

You just spent the last n-minutes telling me how great this product that I’m about to buy is. We get up to the checkout counter and, all of a sudden, I should be paranoid that it’s going to break down as soon as I walk out the door.

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usually a quick “no thanks” with a smile does the trick. They’ll try and bait you with “you have something against saving money?” and just a quick no thanks will shut that down too

I said this last time I bought a car. They probably asked me 5-6 times about the warranty and I finally said “it sounds like you’re selling me a car that won’t be reliable,” and he finally relented.

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sometimes the extended warranty for a car is a good deal, compared to after market extended warranties which are total rip offs

Yeah, they did that when I was buying my last car. And he was explaining all the things that can go wrong and how much it is to repair. It was a warranty for 6 years… but everything was automatically under warranty for 3 years and I pointed out to him, I’d be paying all of that money that will only pay off if things break in years 4-6. I know those dudes at car lots get some sort of commission for selling you that, so it doesn’t seem unreasonable for them to be interested in getting you to buy it. I guess I’m just trying to understand the incentive on selling me something that is not that much money. Not sure if anyone has worked in a job that did this in their past.

Yeah, sorry for the hijack. I don’t know how or if incentives flow down for selling warranties on guitars and toaster ovens and what-not.

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Almost exactly what I did. After several "no"s he asked me,

“What will you do if you’re 2 months down the line and your engine blows up?”

“Do your cars engines blow up frequently?”

“Well no but what if it does?”

“I’ll buy a new one. [pause] Listen, I understand you’re here to make a profit. If a lot of people buy this, you expect to get more money than you’ll pay. I am here to buy a car, not a warranty.”

He was visibly upset, I didn’t care, I’d been there like 15 minutes already for just that.

In general, the salesperson does make a commission equal to a decent % of the warranty cost. It is definitely a significant amount on vehicle extended warranties.

Don’t most sales jobs have commission? That’s why they’re so annoying.

I can’t imagine people trying to sell stuff that hard with no stake.

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Most salespersons get paid some sort of commission. But extended warranties are so overpriced that the salesperson’s cut is significant.

isn’t the loss ratio of warranties close to like 0? Nobody remembers they have warranty and/or the car gets sold and the new owner never get informed that a warranty exists.

With a new car purchase, you can usually count on a follow up from the manufacturer in the form of a satisfaction survey. After the 2nd “No thank-you” that I say for the extended warranty, I tell the F&I person that the ratings I will give on the survey are about to plummet because they are not listening when I say “no thank you”

I once had a floor salesman refuse to sell me an appliance if I didn’t buy the extended warranty (store rhymed with Pest-Bye) I went to another copy of the store one town over, bought the same appliance, and found out the name of the regional manager to complain to. I did so. I’m not sure if anything ever came of my complaints, but it felt good to do so.

So this salesperson :clown_face: had sales of $0 instead of $appliance??? I’d bet money Corporate had something to say to this moron.

I was rather curt with him by interrupting the sales pitch and saying “Don’t bother, I am not going to buy an extended warranty, and I don’t want to waste the time to listen about a product that I am not going to buy” and he was all “Well then, I guess you don’t have time to buy this oven”

If that crap happened today, I’d whip out the iphone and attempt to video the dude as I asked him “hey could you repeat what you just said so that I can post it to youtube?”

At times, on certain things, I have bought extended warranties.

On the new cars, I generally never got much back from them. On two Hondas, I never made a claim for a dime.

On an aftermarket warranty I bought on a Ford, the warranty company denied my claim because I didn’t follow their claim procedure properly - which meant I applied for reimbursement after I paid for the repair instead of contacting the aftermarket warranty company ahead of time. I swore off most warranties after that. You can shear a sheep many times, but only skin them once. I got f%&ked on warranty once, so to hell with the whole industry for the rest of my consumer lifetime.

I know for cars where they’re selling the maintenance plans etc etc the dealership definitely is getting a lot/most of the money coming through so I imagine they incentivize their staff accordingly

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