If Companies Believed In Their Products, Why Would They Need To Sell You An
Extended Warranty?
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| ...it's basically an admission that the products they sell aren't built
| to last. If products had a specific reputation for quality then no one
| would ever even think about buying an extended warranty -- cutting off
| this profit stream. In other words, the incentives are to build a
| product that's just good enough to last a little while, but not good
| enough to be problem free. Some say that this decrease in quality
| makes plenty of sense when there's constant innovation and prices
| continue to drop, to the point that it's often cheaper and better
| to buy the latest version every few years rather than making sure
| you get a really solid product. However, it certainly creates a
| fine line that often ends up with customers feeling ripped off --
| which is rarely good for business.
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http://www.techdirt.com/articles/20061120/115301.shtml
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