Product Serivce/Replacement Plans +EV or -EV

[4 High]

In general, obviously some make a tad more sense then others, but im talking about in general. If you want to get in specifics thats fine, but im just looking to see if anyone thinks they are +EV.

[captZEEbo1]

I'm pretty sure insurance is always -EV, if they were +EV for the user, why would they offer it to you (b/c it'd be -EV for them). I found out this is ALMOST always true except in the case of health insurance

[swede123]

It might be worth it on early versions of new/unproven technologies, like the early generations of plasma TVs for example. I'd say it's a crappy deal when it comes to 99% of consumer type stuff.

Swede

[kenberman]

in general, they are just another way for stores to make money.

I've had a couple work out, mostly for radiply evolving consumer electronics (digital cameras, cel phones). the -EV ones, like the ones I've had, involved a free replacement to the current model (which is invariably better than the old model) if anything breaks. since these products tend to break a lot, I got some nice upgrades for free.

[TheMainEvent]

[ QUOTE ]
In general, obviously some make a tad more sense then others, but im talking about in general. If you want to get in specifics thats fine, but im just looking to see if anyone thinks they are +EV.

[/ QUOTE ]

If you work in a retail store, they will be pushing for you to sell these more than anything else in the store. This should tell you everything you need to know.

[Freakin]

Insurance is great to have when you need it.

[captswifty]

I bought a $3500 rear projection HDTV from Best Buy about three years ago. The service plan was $299, so I figured that it would be worth it at less than 10% of the cost. Two months ago, I had one of the color guns go out in the TV. A well-placed $20 bill to the technician got me three brand new color guns with a retail price of $275 each.

I think that most big ticket items are usually worth it, seeing that the service plan doesn't cost much compared to the retail price of the product, and the cost of repairing or replacement.

I once had a Best Buy cashier try to sell me a $9.99 service plan on an $8 pair of headphones. Didn't even phase her to ask me if I wanted to buy it.