Product Warranties: A Flawed System

Whenever a customer purchases a product of any kind, there should be at least some expectation that the item being purchased is going to work. If it does not, it would render the purchase pointless, would it not? Unfortunately, as consumers, we are forced to spend extra money in addition to the purchase price of the product in order to ensure that if something were to go wrong, that it can be replaced.

The Situation

Many devices that we buy, particularly those that fall into the consumer electronics category, are quite expensive. To buy a new computer for example, you'd be spending several hundred dollars. If you were to invest in a new Xbox 360, you would be looking at about $350. To obtain the feeling of dread that comes with realizing that the HD television you bought a little over a year ago has just fizzled out and is no longer covered under warranty... is priceless.

While it is true you can extend your warranty to three years or more, it comes at an additional price. Why is that? Do manufacturer's really think that if I spend that kind of money on their product, that I only expect it to last for a year? In the case of televisions, game systems, and computers, I hope to not have to purchase another one for almost five years. So why am I paying hundreds of dollars more to have this peace of mind?

The Solution

I think that if it was a standard that certain products had warranties lasting several years, it would force quality out of manufacturers. After all, if you don't want to spend money on parts and manpower to fix something that you sold, wouldn't you want to make sure that it worked perfectly to begin with? I think the fact that Microsoft is giving Xbox 360 owners a three year warranty on consoles purchased since launch day is brilliant. It may have been the result of unforeseen circumstances, but it's easy to see what a great benefit it is to consumers who are worried about the alarmingly high failure rates on these systems.