We've all experienced it - "extended warranties," "service plans," "performance plans." Consumers are saying no to purchasing these warranty add ons for their electronics purchases. When a prospective TV buyer walks into your store to upgrade their standard definition TV set, you can take them over to any high definition TV and they will instantly distinguish the added value of the HD set. However, this is not the case with "extended warranties." Retailers Best Buy and Circuit City have recently reported that revenues are declining in this sector. Analysts (read the report here) have made suggestions that consumers have an increased level of shopper awareness. Also revenue declines are blamed on the warranties high sticker prices. In short, consumers don't see the value.
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