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Old Apr 17, 2006, 5:49 AM   #11
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Michi wrote:
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If something really goes wrong after your warranty, you can pay for the repair, and in the long run still come out better than if you bought an extended warranty for all your cameras.





Hmm this is interesting.

Again in NZD sorry i dont no us conversion rate. In nz5 yr start from $100nzd. so i gues around $55usd. Now a long shot on average a cam repair prob sits around about 80-100usd. Now ur prob thinking AHAAAA thts my point the warranty makes no diff. BUT did you no a repair agent will warranty any repair work outside of warranty for 3 months. Thts it. So how can u be better off. Pay $80usd for ur repair and the agent is only prepared to say "there you go sir, all i can guarentee is 3 months then ur on ur own, See u next time".

Now what hapens if its a faulty lens and the entire thing has to be replaced. We had a nikon which was dropped, but the point was the replacment lense was $400NZD. around about $250usd. Are you going to pay tht for a 3 months warranty on repair. Dont forget you have to pay parts, labour and shipping. Not to mention if you go through the retaier they have to make something out of you. I mean you didnt buy ther warranty so they want to make some margin out of you bcse ur utilising ther staffs time.

Also if ther is a faulty port on the cam lke the usb input. I only just learn tht in most new cams this individual part cant just be replaced. the entire motherboard needs to be done. Thts aronnd $250usd. You going to fork out for tht. remeber labour and shipping ontop and ONLY 3 months to guarentee,


We had a nikon have its battery door repair out of warranty and it was just short of $120nzd (arnd $65usd) just for a batt door. a peice of plastic tht has 2 screws. Thts with mark ups, shipping, labour and parts charges.


The 5 year we sell offers unlimited claims internationally or single replacment. Either or you are way better off than ur 3 months guarenteed camera.

So in all above as long as issue is not caused by misuse. abuse, impact and water damages etc you are covered. Just bring it in, retailer gets claim# which takes about 30mins and your cams off to service. We always show customers the receipt so they can see the value of the servicing vs the price of warranty. 90% of the time its much higher. And ofcourse the repair work still carries 3 months but the remaining period of your 5 year will still cover tht part.

If the cam cant be fixed OR the cam has had to many on going faults OR its uneconomical to repair the camera will be replaced with a cam of equivalent std at the current time. 3 year old cam gets replaced with current model. So froma big pic point of view the extra $65usd u paid for got you a new cam you wouldnt have if you didnt buy the warranty. thts gota be a good buy. But ofcourse as soon as the cam is replced the remainder of the 5 year is voided and you get a 1 year manufacturers on teh replacment. we notice all most every customer will repurchase the 5 year agaain on the replacment as they have already experienced its value.

And yes camera always fault. Actually electronics always fault. We make a stack of money getting items fixed out of warranty as we can charge for maximum margin. Now keep this margin idea in mind. The retailer prob made close to nothing selling the item to you. Now i admit warranties carry healthier margin than the actual item until you make a claim. just like insurance. So if you are a person who doesnt take a warranty then wants out of warranty work the natual decision will be to make back all tht lost margin in the repair charges to the customer. Then BOOOM huge repair bill.

Units arnt made like the used to be. We have ppl buy the most expensive units and bringing them back with various faults.

I have to agree that yes, canon cameras are very reliable units and we maybe service a couple per week per branch. But its totally ur call if you want to put yourself through tht missery of having something break down on you and have nothing to fall back on. If ur the sorta guy tht think who cares just throw it away then fine. I mean i dont agree with tht, i thikn its a total waste but fine. If your the sort of guy tht thinks i can scream and yell and preach the consumers act and get it fixed under warranty without an exteneded thn good luck to u


NOw i to before i started working in the industry thought the warranties sounds ok. once i saw the amount of faulties out store we bringing in per week i thought its crazy. I have all my goods covered under 5year as i get them thru work and so far have made 1 claim on my tv and 2 on my computer. Nothing on my cam yet but thts only 6 months old.

Also remember the chance of a fault increases exponentially each year. 4 years down the tracks thts some very hi chances


At the end of the day i gues its just peace of mind. Its hard to put a price on peace of mind. Some ppl value it more than others.


I prob sounds lke apressuring sales person but we encourage all the sales staff to push this. It just makes things so much easier down the track. IF ther unit faults custy is happy bcse they bought a product (5YEAR) inwhich they can finally see the value in, retailer is happy bcse there is no conflict of intrests in whoshould be paying the bill and supplier is happybcse their canon branded camera is being fixed promptly therefore sustaining a good name.

Our retail managers deal with this issue of ppl not buying extendes everyday. Its crazy. In some of the busier store ppl are employed just to cope with extended warranty work

I am just explaining features and benefits of our warranty. IM not sure if the warranty you are looking into has similar benefits

At the end of the day you have to weight up wat u expect from ur cam and ur finances. if u plan on upgrading soon and its no skin off ur back if the cam carked it a lil down the track thn dnt worry. If u wana little more enquire about pricing and features. Ofcourse u may be like some lucky ppl who never have a fault.

hope this helps



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Old Apr 17, 2006, 11:45 AM   #12
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All I was saying is this. When you add up all the TV's, DVD players, PC's, MP3 players, camera's, lenses etc. I have bought in my life. Out of those, maybe 3 or 4 have actually died. If I would have followed the advice of the salespeople and bought an extended warranty for each item, I would have spent WAY more money on warranties than on fixing or replacing the item that actually broke. That was my whole point, yes, it may hurt to pay to get the camera fixed, but if you keep buying extended warranties, you will lose out in the end.

Why else would they sell extended warranties, to be a charity? No, they are making big money because most itemsdon'tbreak...



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Old Apr 17, 2006, 3:23 PM   #13
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Michi wrote:
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All I was saying is this. When you add up all the TV's, DVD players, PC's, MP3 players, camera's, lenses etc. I have bought in my life. Out of those, maybe 3 or 4 have actually died. If I would have followed the advice of the salespeople and bought an extended warranty for each item, I would have spent WAY more money on warranties than on fixing or replacing the item that actually broke. That was my whole point, yes, it may hurt to pay to get the camera fixed, but if you keep buying extended warranties, you will lose out in the end.

Why else would they sell extended warranties, to be a charity? No, they are making big money because most itemsdon'tbreak...

ah i see wat u are saying. well u have a ver interesting take on a contriversal subject. as you prob already know, one products histroy is not relative to another. Also tht certain products having higher risk factors. Especially portable goods. (E.g. cams) thts usually y their warranties cost alil more.

and ofcourse we are making money from it. like i said earlier we make nothing out of the products. the indufstry is so aqgressive now that we have to resort to pushing big add ons and adding value to our itms. And thts tough work with the modern consumer often knowing, or thinking they no, more about the industry then the actual company themselves.

Its a staggered profit system. We have to sell more warranties than what are currently claiming to keep ahead. Still a large portion of extendeds make claims outside of the std warranty period. its a constant game of cat and mouse to keep the figure in our favour.

we sell alot of gimiicky insurances, and post payment and item security products. The extended warranty would be the only type of product in this catagory tht has real value. i wouldnt go on and on if i didint think so.

and finally u are very lucky. Out of your goods purchsed in the last 4 years only a few have faulted. You are doing very well. tv shoud soldier on for a long time. mp3 players usually dont fault unless its an ipod. DVD player would have to be currently one of the faultiest lines of product we sell. And thts across all the brands. we d0ont warranty lense or any camera peripheral. And yes back to cams where i would say a moderate amount come back. but like i said before unlike some other prodcut catagories like DVD players. When the camera has a repair charge on it. You are going to know about it. Big $$$$$$. u saw the silly batt door example above.

ken


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Old Apr 17, 2006, 5:01 PM   #14
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I suppose it would be interesting to see actual numbers of let's say how many digital compact Cameras have been sold and how many have to be repaired within a certain amount of years.

I still think my theory is correct about saving money in the long run. If I had put the money away for warranties just for the cameras I bought, I could buy a new camera by now. I just bought the Canon A700 for US$244 from Dell. A $50 warranty really wouldn't be justified in my opinion. That's 20% of the purchase price. If it breaks inthree years, I could buy a similar camera for the same or a lower price minus the $50 I spent on the warranty. I would be much happier with that than have my by then outdated camera repaired.

Do you have any numbers you are allowed to make public? As in how many warranties you sell and how many actually make use of your services? That would be a good indicator if it is worth buying an extended warranty.
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Old Apr 17, 2006, 5:48 PM   #15
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No we don't record warranty claim conversion. We only record "warranty sold conversion rates" We don't record the number of claims at store level as there is no use for this information at sales level. We however measure the warranty conversion rates of applicable sales and that sits around the 50% mark. This is around the norm.



Stats tell us that 20% of people simply won't buy the warranty no matter what. Another 20% will buy the warranty religiously. And the remaining 60% of people can be swung by explaining features and benefits.
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Old Apr 17, 2006, 6:01 PM   #16
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Interesting, thanks!
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Old Apr 18, 2006, 6:05 AM   #17
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Michi wrote:
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Interesting, thanks!

no worries

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