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What about Protection Plans or Extended Warranties for New Appliances? Are they worth buying?

protection plan and 2 more...
I get asked about new appliance protection plans and extended warranties a lot both during real-life service calls as The Appliance Guru and via emails from this site. So, FWIW, I thought I'd offer my contemplations and musings on the topic.

First off, you gotta realize that protection plans and extended warranties are only as good as the people offering or doing the actual service work. Protection plans are basically a form of insurance. Lots of companies want to get in on the protection plan biz because, structured correctly, it’s a highly lucrative arrangement: you pay a chunk of money for service that the warranty company is betting you won’t need. Insurance companies have this game figured out in all aspects of our lives, including home and appliance warranties.

But there’s one big difference.

In auto, home, and medical insurance, for example, all the insurance company has to do is write a check for a claim. Insurance companies are all about cash so even writing big checks are no problem for them.

Now consider an appliance repair insurance plan— which is basically what protection plan and extended warranties are. When a claim is made, what’s the payout? Instead of a check, the payout is usually a repair. And herein lies the dirty little secret about appliance protection plans: they are only as good as the repair services available in your area, as in a live, skilled technician coming to your house and fixing your broken stuff.

When you’re being sold on the plan, they’re trying to implant the Fantasy Scenario vision in your head:

The Fantasy Scenario

The technician gets there the same day or next day, knows exactly what the problem is, has the part on his vehicle and gets you all fixed up right then and there. This almost never happens in a real-world warranty situation but that's the fantasy when you buy the plan.

Okay, let’s come back to planet earth and look at how these protection plans work in the real world.

Suppose something breaks and you need service. Depending on who is actually providing the service for the protection plan, the response will likely be one of the following scenarios:

The Typical Sears Scenario

You call and get an appointment for two weeks from now. If you're lucky, you'll get a decent tech who can troubleshoot the problem accurately. But much of the time you'll get an undertrained guy who "thinks" he knows what the problem is but, since corporate policy prohibits him from carrying inventory on his service vehicle (to prevent employee theft and moonlighting), he has to order the parts and come back. That’ll take another two weeks. On the second trip, the servicer installs the new part only to realize that he guessed wrong. Whups! “Golly, ma’am, must be sumpin’ else!” Or, “Dang, another bad board outta the box, that’s the 5th time today!” He scratches his head, takes a guess at another part, and has to come back yet again. Each trip is a four hour window for the servicer’s arrival so that’s two or more half-days you’ll need to take off work to wait for him. Oh, and they may call you on the day of the scheduled appointment to cancel for that day and re-schedule.

The Typical Home Warranty Company Scenario

There are several of these types of companies out there-- NEW, American Home Shield, and others. They all work the same way: you pay them for an appliance warranty plan (repair insurance) and, in return, they’ll cover any repairs that need to be done under warranty. Sounds great on paper and they do a great job selling these plans. But, as you might expect, there are not one, but two big Achilles’ Heels with this arrangement.

1. Their service is only as good as the independent servicers they can find in your area. If you live in a densely populated area, this may be a non-issue. But if you live in a sparsely populated area, this could be a problem. The warranty company won’t have any easier time finding a qualified servicer than you would on your own. In fact, they’ll have a harder time because of the second Achilles’ Heel:

2. Most independent servicers hate working for warranty companies because 1) they are difficult to deal with like any corporate bureaucracy, 2) they are either slow to pay or pay very little compared to COD rates, or 3) they have gotten a reputation in the industry for stiffing servicers and not paying at all after the repair is successfully completed so, as a result, many independent service companies flat out refuse to work with particular warranty companies. The result is a delay in finding a servicer willing to work with the warranty company which means a delay in getting your stuff fixed. This miserable process usually culminates with you spending hours on the phone with the warranty company (most of that time on hold listening to blaring muzak or repetitive announcements telling you how awesome they are).

Protection Plans from Independent Retailers

This requires careful investigation on your part because, again, their warranty is only as good as the service to back it up. Some dealers service what they sell. Okay, fine. But are their technicians any good or are they parts changing monkeys? Hard to know. One way to find out, though, is to use the Internet and see what people are saying about them on places like Google reviews, YP.com, and the Better Business Bureau. Do a Google search of the company’s name and see what you come up with.

Most service companies should have a company website that tells how they do business and a social web presence, at least a Facebook Page. If they don’t, that’s a red flag right there. I don’t say that because I’m a Facebook fanboy, but because it shows something about the company-- that they have a public reputation they are cultivating and want to protect. It also shows that they’re in business for the long-haul.

If you are inclined to go the protection plan route, a good way to go is with a local dealer who services what they sell and one whom you have personally vetted nine ways to Sunday. You don’t want to end up in the situation where you call your local dealer for a protection plan service only to find that their phone has been disconnected. Hey, a lot more common and possible in today’s economy that you may think.

What would I do if I were me? No, wait: what should you do if you were you? No, wait…

IMHO, the best thing to do is to find a good local servicer (using the vetting suggestions discussed above) and establish a relationship with them. Some may offer some kind of protection plan you can purchase. Otherwise, just budget a little money each month into savings to cover eventual repairs.

Here are a few more vetting strategies...

If you don’t get a live human when you first call, don’t leave a message. Call back another time and see if you get a human then. You’re looking to see if getting voicemail is how these people roll or was that a fluke due to bad cell reception or something else going on with them. You want a service company that strives to always answer the phone, even after hours and on weekends. Honestly, in this day and age of cell phones, there’s no excuse for not doing this… unless they just don’t care whether or not they get your work. And that’s what you’re trying to assess.

You also want to find out what their typical response time is. What do they claim their response time is at their website? You’re looking for someone who strives for same day-next day service. The best service companies will offer Saturdays as a regular working day because that’s when people are home and it’s convenient for them (that’s why it’s called appliance repair service).

Once you’ve found this golden service company, cherish them, woo them, nurture that relationship, send them Christmas cards, bake them Kwanza cookies, carve them Hanukah dradles, knit them Ramadan kufis, whatever you think will solidify your connection with them because, when your fridge breaks on a Saturday and you have a houseful of guests, you want them out there that day to get that box cooling again taco-pronto.

If you have the supreme good fortune of living in the Kearsarge-Lake Sunapee Region of New Hampshire, call The Appliance Guru for fast, expert appliance service, including weekend and holiday emergency service at no extra charge. Learn more here: www.ApplianceGuru.com


What brand of appliance can you buy today that will give 10 to 15 years of trouble-free operation?

Posted by Samurai Appliance Repair Man, in General Appliance Repair Wisdom 27 November 2013 · 760 views
appliance, brand, recommendations
Many appliance owners are frustrated today because they don't realize that the days of buying an appliance and having it work trouble-free for 10 to 15 years are long gone.

The good news is that you can buy an appliance today for about what you would have paid 15-20 years ago.

The bad news is that there's an on-going cost of appliance ownership in doing repairs-- industry average is every 2 to 4 years.

What varies among brands and models is how big will that repair need to be, not whether or not it'll need one-- I guarantee you it will!

Short answer to the question asked in the title of this post: NONE! That brand doesn't exist anymore.

As for brand recommendations, I have a complete report that I update periodically and give away for free when people subscribe to our free newsletter, Appliantology: The Oracle of Appliance Enlightenment.


Naked Before Millions

youtube, one million, views
Hoo-wee! We just passed One Million views on my YouTube channel! With over 140 videos (and counting) of my gnarly, naked knuckles whuppin' up on a bunch of appliances, you're sure to find some inspiration for your own appliance battles.

Subscribe to my YouTube channel and observe, first-hand, my patented appliance repair battle techniques. Posted Image


Defective customers and Youtube

youtube, cheesedork, customers
There's a lot of great stuff on Youtube on just about any topic you're interested in. You can even find detailed how-to information on appliance repair, for which the premiere, go-to channel is this one.

But unless you know how to apply what you're seeing on Youtube to your exact, specific appliance repair problem, then Youtube videos just become a source of noise and confusion. In fact, if you are someone specially endowed with the Cheesedork mentality, then Youtube videos will only make you dumber because of your hubris, pig-headedness, and unique inability to apply what you see to your specific situation. One of the distinguishing characteristics of Cheesedorks is that they don't know what they don't know yet they think they know it all. And their hubris prevents them from seeing the truth.

Brother nickfixit, veteran appliance repair warrior and esteemed Brother-in-The Craft, shares with us a recent encounter he had with a real-life Cheesedork who was so utterly befuddled by the appliance repair information he watched on Youtube that he could not even hear the truth from the professional Appliantologist right there in his house. Don't be this person.

I went on a call yesterday for an electric dryer that would not start. It was a 15 year old DOTT dryer in a mobile home. I push the start button and get the groaning buzz that says the motor is toast. I remove the blower housing and check to be sure there is nothing mechanically binding up the motor, so the motor is officially NFG. I also noted there was a ton of lint inside and it had caught on fire at least once. A motor and blower wheel job priced out at aprox $400.

Now the internet stupidity creeps in. He tells me he has done his research and viewed at least 30 Youtube videos and he is certain the problem is caused by "a little white plastic thing in the back". I stifle a laugh, and know I'm in the presence of a glittering jewel of colossal ignorance. I tell him the little white thing is a thermal fuse, and it is located on the blower housing in the front on a DOTT dryer. Plus, his electric dryer is wired so a failure of the thermal fuse will cut power to the motor and you would not even get a buzz from the motor.

He gets all mental like I was trying to rip him off, and "it ain't right" ! I told him he was only 4 screws from removing the thermal fuse, go get one and follow your Youtube Guru to dryer happiness. I knew we would never get a cent from this genius so I cancelled the call and removed myself from his very humble abode.

Walking the frontiers of stupidity,

Nick



Source: Defective customers and Youtube


Customer Qualification: The Cheesedork Challenge

cheesedork, dumb assess and 3 more...
You are a cheesedork if...
you resent paying anything to have me drive to your house to troubleshoot your appliance, even if you decide not to repair it.

You are a cheesedork if...
you call troubleshooting your appliance "just looking at it."

You are a cheesedork if...
you expect me to drop what I'm doing and get right over to your house, know exactly how to repair your appliance, have the part on my service van, and get it repaired in that same service call but you carp and whine nine ways to Sunday when I tell you how much it will cost to fix it.

You are a cheesedork if...
the first question you ask after I troubleshoot your appliance and tell you how much the repair will cost is "How much is a new one?" Look, I'm an appliance repair tech, not a vacuum cleaner salesman. You think I carry around appliance catalogues from all the major manufacturers?

You are a cheesedork if...
you are incapable of grasping the fundamental economic difference between the retail price for a new, mass-produced appliance and the fees charged to repair that same appliance at your house. As if the cost of banging out a million washers in a Chinese factory is somehow even remotely connected to the costs of operating an in-home repair business in the U.S. Get a clue.

You are a cheesedork if...
when you call, you inform me that you know what's wrong with your appliance and insist on knowing how much the repair will cost without me even troubleshooting it. Ummm, hold on, lemme warm up my crystal ball...

You are a cheesedork if...
you resent that I do not bill or invoice for services. Oh, you're right--as the "local provider of services" I should just send you an invoice and let my money float for 30, 60, or 90 days interest-free (if I see it at all). You wanna loan, go to the bank. You want your appliance fixed, pay me before I leave your house.

You are a cheesedork if...
you think of my business as "the local provider of services" like I'm some friggin' government agency, or something.

You are a cheesedork if...
you don't think twice about the confiscatory taxes being withheld from your paycheck or the outrageous property taxes you're forced pay, yet you'll start a modern Boston Tea Party over paying a fair price for an expert and convenient appliance repair in your home. How 'bout ranting about something that really matters, for a change?

You are a cheesedork if...
you mistake my professionalism and polite demeanor to mean it's safe for you to crab and moan to me about my bill when you know you wouldn't even make a peep to a redneck repairman about his bill.

You are a cheesedork if...
you justify your outrageous behavior to me by repeating the quaint mantra, "The customer is always right." Well, Einstein, if you're always right then whaddya need me for? Go fix it yourself.

You are a cheesedork if...
the first question you ask when calling for service is "How much...?" instead of "How soon...?" Let your fingers do the walking--call someone who doesn't have enough self-respect to tell you to take a walk.

You are a cheesedork if...
you think it should be free "'cuz it's on the innernet, an' all."

You are a cheesedork if...
you send me email whining that I'm "too cynical about people"--as if I sit around and make up all this stuff.

Puh-leez!! Folks, I wish I only made this stuff up, really I do. But the sad reality is that all this stuff is based on real encounters with real cheesedorks. Truth is, most people are just plain childish when it comes to paying for appliance repairs.






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