In other words, if the price of a service contract for a unit valued at $800 is $100, that does not mean that the price of an $8,000 unit should be $1,000. And that doesn`t mean the price of a $400 unit should be $50. The ratio is not a constant percentage for each unit, like the black line in the middle of the graph. Let`s set aside the brand identification of the units for a while and take a closer look at their prices. As I said, the brand did not appear to have a significant influence on the prices of service contracts. In fact, most retailers price everything on the selling price of the product, provided that everything between $200 and $500 carried a contractual service price, while anything that sold between $500 and $1000 had a different price. And in cases where GE, Frigidaire and Whirlpool were selling units at the same prices, the prices of their service contracts were the same. However, there were considerable differences in the size and price of units, which were expressed in relation to the products and their protection plans. For example, smaller, more compact units tended to be cheaper, but the price of their service contracts was proportionately higher. And because Danby has manufactured a lot of small units, this has increased the average price ratio for the “other” category in the table below. The Frigidaire Factory service, if available nearby, ensures that trained technicians are ready to provide advice, advice, repairs and replacements of devices covered by the warranty.
Your service trucks are equipped with more than 400 parts on site, such as. B the repair parts of the Frigidaire refrigerator. If your appliance breaks down, you can access these parts immediately. This suggests to us that the price of protection, while it may be closely related to the price range of a given product, is also correlated with the average price of repairs and, in fact, the likelihood that repairs will be required within a specified time frame. There may therefore be both a floor and a cover that is included in the calculations of the price of the service contract. There is a base price that no supplier can earn money from, given the cost and likelihood of a claim. And there is a ceiling where even the protection plans for the most expensive units will be profitable in the long run. In our evaluation of the Choice Home Warranty, we found that the company has the best overall plans.
They offer customizable and affordable plans, as well as fast and reliable services. Now take advantage of the benefits of your new plan and spread the costs across 4 single installments. Payments are made each month from the day you place the order. Why not make your life easier? Just select FlexPay for your new extended service contract during checkout! In other words, buyers could first choose the refrigerator they wanted to buy, and then choose between several service options that differed in price, duration and coverage. This is the only case where, within a particular retailer, consumers have a choice, at least with respect to service contract providers. Typically, each director has a monopoly on a particular retailer at some point, and he or she competes for the exchange. The most expensive service contract of all ($800) was found at Kmart, which protected a $3,800 hot tub for five years. But it was only 21% of the unit price, so on average it was ok. Staples, Walmart and Target had a large number of service contracts below 25 $US for Danby`s compacts, which were close to the two- and three-year average.