I learned a valuable lesson several years ago. Let me share the story with you. . . .
I was shopping for a new washer and dryer. I went to a popular retailer because I wanted free delivery and installation.
After picking out the units I wanted, the salesman took me to the register to pay. Then he asked me the big question: do you want to purchase our extended warranty?
The warranty is like gravy on top for the retailer. It’s almost pure profit.
I said no. But he got pushy. He was a real talker. He knew how to sell.
Finally, having gotten tired of his sales pitch, I figured I would make him an ultimatum that he wouldn’t be able to accept.
I said, “I tell you what. If you give me the full warranty at half price, I’ll buy it.”
Without even hesitating, he said “Deal.”
I didn’t want to go back on my word, so I took the warranty. At half price.
He responded so quickly that I realize I should have asked for 75% off. I left money on the table. And my washer and dryer have never had a problem.
The lesson is this: if you must take the warranty, negotiate for it. Ask for a discount.
A deep discount. Don’t pay full price.