Wednesday, February 16, 2011

A Ruse Retailers Use to Sell You Extended Warranty Plans

The Last Line of Defense

 Okay, here's a secret that may save you some money next time you're confronted with buying an extended warranty plan.  After you have said ‘no’ to the salesperson the subject will come up again.  When?  While checking out at the register.  In the retail business this is the last line of defense.  Here is where the cashier innocently hits you up again.  Be attentive, this is a ruse!  

It's tempting to take a second look at the plan because now a second person has confirmed what the first person said. What the retailer wants you to believe is the cashier is looking out for your best interest.  'Here is your last chance to take advantage of this opportunity to protect your product.'

But it's all a forced set up!  In this case the salesperson and the cashier work in tandem to sell you on something they probably don't care about themselves.  Ask next time!  "Would you buy a warranty plan on 'this' product?"  The honest cashier (and most of them are) will relent.  The selling aspect is just part of their overall job.  Believe me, for most cashiers it's difficult to memorize a sales pitch they don't believe and then try to talk you into buying a plan they know to be useless.

The cashier and the salesperson are only responding to pressure to keep their job.  Some companies give a small commission to the seller, but all companies keep track of the individual’s progress as well as the store's progress to compare these numbers with the district and region.  It is big money and those that don't make it happen don’t keep their job.

In my last retail company a manager was fired because of her poor EWP performance.

The cashier lends credibility to the value of the plan by repeating the pitch of your salesperson.  And guess what?  After saying no to one person on the sales floor over 40% of consumers lower their defenses and buy these plans at the register.   Now you know about this ruse.  Buy a plan because you feel it as a value and avoid buying one on impulse or because of trickery.
That's just one deceitful practice that goes on with these plans.  And by the way, they are returnable.

More EWP insights next time!

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The definition of a chump:
a gullible person, a sucker; someone easily taken advantage of, the target of a scam.

Learn from a former salesperson and trainer how salespeople drive sales. Learn how to keep more money in your pocket where it belongs! There are two ends of every sales stick!  One end cries 'chump.'  The other end boasts 'champ.'  I know which end of the stick I want to be.  How about you?

1 comment:

  1. I didn't know you could return an extended warranty. I figured once you bought it you were stuck with it. There's only been a couple times that I purchased a warranty on anything but I've felt the pressure at the register & questioned that decision many times. Thanks for passing along all this valuable info.