'Tis the season of the extended warranty! George Block of consumer.org.nz looks at how the major retailers are performing in the customer satisfaction stakes and why it's usually worth your while to haggle over price.
Service? Photo: (Mike Wilson via unsplash.com)
"[The big retail chains]...boast dozens of near-identical stores dotted all over the country and offer a dazzling array of products, usually at highly competitive prices. And they’re all dragging the chain when it comes to keeping their customers happy...In fact, the only big-box retailer to return above-average results was hardware giant Mitre 10." George Block of consumer.org.nz
Extended warranties can cost 10 to 20 percent of the purchase price of a product, but in most cases, you're paying for rights you already have under the Consumer Guarantees Act.
This means that if you buy a faulty product, then the retailer should either replace or repair it (and/or offer you a refund in some circumstances) if it fails within its expected lifespan.
Now knowing the 'expected lifespan' of a product you buy is the tricky bit, and that largely depends on the type of product and how much you paid for it.
As a rule of thumb, consumer.org.nz has worked out that you can reasonably expect a fridge, TV, vacuum cleaner or washing machine to last for 10 years (or more!) and something like a toaster to last for around 4 years. Basically the more you pay the longer it should last.
If you want to avoid having to argue the point with a salesperson in the store or are buying goods for a business and not for personal use, then an extended warranty could be handy. But it will cost you!
"We quizzed Consumer NZ’s expert mystery shoppers for their top tips on landing a bargain.The golden rule echoed by all our retail gurus was, “If you don’t ask, you don’t get”.- George Block of consumer.org.nz
George Block mowing Photo: (Supplied)
