Dec 6, 2010
What is curious is that Best Buy has been sending me urgent reminders that I can get a swell two-year extended warranty on my TV for a mere $199, one-third of the replacement cost.
This would be roughly equivalent to paying $50K a year to cover your $300K house. No one would pay that.
The way extended warranties work is that only a small part of the cost funds repairs on products; most of the cost is profit.
I suspect that of the $199 Best Buy offer, about $30 funds honoring the warranties and the remainder goes to Best Buy's bottom line.
Things in this blog represented to be fact, may or may not actually be true. The writer is frequently wrong, sometimes just full of it, but always judgmental and cranky