Filed under: Odds and endsOnce upon a time, I worked for a major American retailer in its electronics department. The manager of that department, above and beyond all other considerations, wanted us to push extended warranties to customers. These warranties represented almost pure profit for the company, because they cost nearly nothing to implement while costing the customer anywhere from 10-40% the value of the item they were buying. The profit margin on a $2500 LCD TV was very slim, often gaining the company no more than $100 of profit; by contrast, the $549 extended warranty was nearly 100% profit for the retailer.
From the retailer's perspective, it's easy to see why they push these extended warranties. From a cus
