Quote:
Originally Posted by bohemian
Warranties are based currently on state and federally mandated laws.
Warranties are given to cause a purchase by removing fears of later expense in the case of failures of the product.
Warranties are now a marketing ploy.
Warranties are not the "price" of doing business, it is a cost of doing business.
The cost of warranties is packed into the price.
The amount is calculated by historical records of the average cost of repairs per unit spread over the total numbers of products and a hedge factor built in.
Every purchaser of the makers products pays for warranty repairs even though their specific product does not fail.
What drives up warranty costs and frequency is poor manufacturing techniques, low quality materials , poor design, and substandard quality control
Other factors are untrained, incompetent repair persons.
What manufacturers bank on is that most customers know little about a product and what constitutes a failure and don't use the warranty.
They also bank on the first customer reselling the product nullifying the first warranty... this is not true in the case of the auto industry (and others) where the warranty is on the vehicle, not the owner.
One day the instrument industry might mature and have a transferrable warranty as did Tacoma and Sullivan banjos and a couple others... some with a small transfer fee.
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Warranties are based currently on state and federally mandated laws, which are based on moral concepts.