People see value in lots of stupid shit that is not actually economically valuable. What I need to see to be convinced is that your average customer pays more out of pocket for repairs during the extended warranty period for repairs that would have been covered than the warranty costs.
That's the gamble my friend. I don't need to prove it to you. Tell me no, I move on. We all make our choices. As we say in the car business, NEXT!
Exactly. Didn't think so.
Do you think your car insurance companies are losing money? Do you think life insurance companies pay out more than they take in?
Why would you think auto warranties (insurance) would pay out on average more than they take in?
People buy it because they have the money and don't want the hassle later on. "What if" is not a question people like to worry about. This gives them some peace.
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