The New York Times draws attention to SquareTrade’s value – extended warranties that give control to consumers with prices that are usually about half as much as traditional store warranties:
For instance, a four-year warranty on the Nikon D3000 camera at Best Buy is $150, or more than 27 percent of the $550 price. The warranty on a Hewlett-Packard N270 netbook is $130, or just short of a third of the computer’s $400 price.
Such profit margins are high enough that companies having nothing to do with selling the original products have jumped into the market, offering warranties for about half as much. SquareTrade, which offers warranties for products bought in stores or online, will sell you a three-year warranty on that Nikon for $75. The netbook can be protected for $60.
Traditionally, warranties have been overpriced with consumers feeling they must make a rushed, uninformed decision at checkout. As the New York Times points out, SquareTrade gives consumers up to 90 days to review their options and make an informed purchase decision.
If you’re a serious eBay shopper, you may regularly peruse sites like AuctionBytes in search of the latest tips and resources for online auction buyers and sellers.
In case you missed the current issue of AuctionBytes, be sure to check it out for the usual roundup of industry news, including an interview with SquareTrade CEO Steve Abernethy:
As SquareTrade celebrates 10 years in business, AuctionBytes Editor Ina Steiner chats with cofounder and CEO Steve Abernethy to learn more about the company’s rather unique service: warranties for purchases of new – and used – consumer electronics and appliances, online and offline. No longer in the business of online dispute resolution, SquareTrade continues to offer eBay sellers and online merchants services to help shoppers feel more confident.
Sang Tang of TUAW (The Unofficial Apple Weblog) writes of lessons learned when his MacBook has an unfortunate encounter with Diet Coke. As he reconsiders the value of extended warranties and laptop insurance, his experience highlights how the value of SquareTrade coverage stacks up when compared to AppleCare. Keep reading →
SquareTrade’s most recent study analyzed failure rates for over 16,000 new game consoles covered by SquareTrade Care Plans. It’s generated quite a buzz as the study compares the malfunction rates for the top three game consoles – Nintendo Wii, Microsoft Xbox 360 and Sony PlayStation 3 (PS3) – and finds the Wii is the most reliable.
During the first 2 years of ownership, 2.7% of Wii owners reported a system failure to SquareTrade, compared with 10.0% of PlayStation 3 owners, and 23.7% for Xbox 360 owners.
Excluding “Red Ring of Death” failures, which are covered by Microsoft’s 3-year warranty, 11.7% of Xbox 360 owners reported a failure.
While the RROD problem continued to be the major issue for Xbox 360s purchased through 2008, early indications point to the problem abating in 2009.
The most common types of problems seen with the PS3 and Xbox 360 were disc read errors and output issues. The Wii had more power and remote control issues than the other 2 systems.
CNN Personal Finance Editor Gerri Willis and Forbes Magazine’s Maureen Farrell talk about how to avoid warranty ripoffs by choosing SquareTrade Warranties instead on “Your Bottom Line”
PC Magazine’s TechSaver interviewed SquareTrade CEO Steve Abernethy and talked about our “a sensible, no-pressure warranty program.”
…no gimmicks, no hidden agendas, just a high-quality service in which consumers would feel like they’re getting a good deal on extending the life of their products. SquareTrade’s “5-day service guarantee” means that if your product has a mechanical or electrical failure, it will be repaired, or you’re paid for the full price of the item within five days, or your service and the warranty are both free.
SquareTrade periodically does research on repair rates and has made those results available to the public. If you haven’t read them in the past, below is a quick summary:
20% of iPhones die from accidents. As iPhoneFAQ points out, “the problem is that most mobile carriers will not cover a smartphone like the Apple iPhone.”
So, where does that leave smartphone owners? There are options and the iPhone FAQ echoes the sentiment that SquareTrade has emerged the clear leader!
“SquareTrade clearly has expertise specific to the needs of iPhone owners and offers the most complete and easy solution.”
“Getting a deal on an extended warranty is a snap. Most consumers think they can only buy an extended warranty when purchasing the original item. That was the case, but now retailers have competition…”
“I had seen the SquareTrade logo multiple times on Ebay and felt that it was another way to get a few dollars from me. I really hadn’t researched it that much, but that day I needed it to be real. I read everything I could on SquareTrade (ST)… ‘No hassle’. ‘Customer Focused’…Why isn’t everyone using it then?”
