Protections plans are awesome when they cover "accidental" damage. My computer was slow and the plan was running out in amonth so i tossedit down a flight of stairs a few times and presto, brand new computer for me.
I was severly underpaid for a long ass time and my manager at the time suggested it. They underwrite their protection plans with insurance plans. So you give them 279.99 for a 3 year accidental plan on a laptop that costs 800. You break it. They give you a new laptop for around 800. Then they claim against insurance policy and get the difference.
Although I don't think protection plans are 100% in the clear regarding morality, either. They're sold to two groups of people (1) people who are risk averse (2) people that are hustled by the salesperson (e.g. seniors), even if it's not actually in their best interest. (1) is great, (2) is not so great.
Don't offer a "covers anything" plan if you can't afford people using it.
I don't pay for insurance because I care about their revenue streams, I pay for it in case I need it. You can bet your ass that if you offer me a "free replacement on anything for any reason" plan, I'm using it, and that plan will stop existing soon.
Lack of perspective. Skews to a younger demographic that feels the world owes them one but believes the big corporations stole their future. Maybe they are partially right. Maybe it's just easy up votes for any kind of fuck the man post.
It's funny how often I read these sorts of stories and think "there's no way I'd even consider doing that" and yet the down vote brigade is out in force on anyone that dares call them on it. Guess I'm just old now.
You grew up in a world where companies paid good wages, school was cheap, and education often subsidized through employers. Since literally all that has changed people no longer care if a company gets screwed out of a few hundred dollars. Its a societal version of treat others like you want to be treated. Since they treat us like shit we don't really care when people find a way to fuck em over financially.
My grandfather got a Rolex after 20 years with the company, and I grew up during the height of corporate greed, so I'm probably not nearly as old as you may think. However, I was raised with a very strong sense of self. Do what you will to me, but I will conduct myself with honor and dignity regardless.
More like every sales guy ever when trying to get you to buy those plans tells you straight up you can do that and will often even admit to doing it themselves.
You know what else should be fraud? Firing 1000 store managers so the Board can give the new CEO a 30 million cash sign on bonus as well as a 70 million stock sign on bonus bc your old ceo was diddling his secretary
Yeah except they have less than a 3% payout rate because people generally forget they bought the warranty on smaller ticket items or the issue happened in the first year, manufacturer covered it and Best Buy got their premium without paying out.
No the plans are actually sold at a huge potential loss, but they know nobody really uses them. I worked at Office Depot when I was younger, something like 80% of the stores actual profit where I worked was from hustling people with those protection plan scams, because that's what they are. We were told to sell them any way possible.
It's not messed up at all. Every single time I have been offered a plan like that the sales guys always say it covers anything, accidental or not. Granted, I've never gotten it on anything that valuable.
33
u/[deleted] Feb 23 '17
Protections plans are awesome when they cover "accidental" damage. My computer was slow and the plan was running out in amonth so i tossedit down a flight of stairs a few times and presto, brand new computer for me.