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  1. #1
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    Warranty. Do you bother or not?

    We are just about to launch a new product into the market and the big question is whether we should offer a warranty period or not.

    The product is a battery operated "high-tech" unit which we have been advised should retail for around 8,000.00 Baht or USD260.00.

    To set up a warranty service is quite a complex process as we hope to sell this product globally which in turn will mean we have to have service agents in each major country, not to mention stocking them up with spare parts and providing technical training.

    It is of my opinion that most people never claim warranty particularly for such a small monetary purchase. Most misplace the receipt and warranty card or throw these documents away along with the unwanted packaging.

    Do you guys and girls normally claim on your product warranties or do you just replace the faulty unit with another product?

    Thanks in advance for your honest response.

  2. #2
    Philippine Expat Davis Knowlton's Avatar
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    I toss them all, unless it's a really big ticket item, like a $2500 big screen TV. For a $260 dollar item, I would toss it.

  3. #3
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    If you want to sell globally! you really have no choice but setting up a warranty system for your retailers and costumers, since many countries have mandatory warranty laws on all products sold.

    Personally on cheap items I would not usually bother, so utilizing the warranty would be a price question, and I guess that is very individual when people think the bother beats the loss.

    Costumer satisfaction and product rep can be important too for sales.

    Good luck to you all with your venture.


  4. #4
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    In some countries. ie Aust, its not discretionary. it has to be fit for purpose

  5. #5
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    ^^^ Thanks Davis and I do the same as the effort and time required to make a claim does not make it worth it.

    Moreover, as the Japanese, Koreans and Asians in general have shown a great interest in our product we have to understand what they may do in the event of a system malfunction.

    260 bucks to us may not be a big deal but it may mean the difference between them buying the product or not.

  6. #6
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    I think you'll have to go through the process LT.

    I'm of the toss it brigade but....



    Hope it goes well ....beers on you.

  7. #7
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    Quote Originally Posted by larvidchr
    If you want to sell globally! you really have no choice but setting up a warranty system for your retailers and costumers, since many countries have mandatory warranty laws on all products sold.
    Good point mate but I have been told unofficially that you may offer a warranty period at your option and the buyer can either purchase the product with or without one.

    Q: Does a manufacturer have to warranty their products?
    --------------------------------------------------------------------------------

    A: The Warranty Act doesn't require any manufacturer to provide a written warranty, but allows manufacturers to determine whether to warrant their products in writing. Once a manufacturer decides to offer a written warranty on a consumer product, however, it must comply with the Warranty Act.


    --------------------------------------------------------------------------------

  8. #8
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    Quote Originally Posted by Loy Toy
    It is of my opinion that most people never claim warranty particularly for such a small monetary purchase. Most misplace the receipt and warranty card or throw these documents away along with the unwanted packaging.
    I always make sure I get the item fixed or replaced, of course
    Quote Originally Posted by larvidchr
    Personally on cheap items I would not usually bother
    I dont think $250 a cheap item, so should be covered

    I wouldn't buy something electronic/electric at that price if it had no warranty

  9. #9
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    i was just a few days ago looking at eastpak's warranty, for a small daypack i bought from them a few years ago as the stiching is coming undone, return to where you got it, 30 years warranty covers seams and zips, they will repair or replace very happy with that, not bad for a 35 Item

    i think youll have to go the warranty route mate, failing that just offer refund or replacement?
    ketamine-only fools and horses

  10. #10
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    What is your failure rate? You have to look at how much it will cost you to repair units compared to replacing them.

    Do the maths first, if it looks like it will last a year without breaking, then just replace.

  11. #11
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    Quote Originally Posted by Smug Farang Bore
    I think you'll have to go through the process LT.
    It is my vote to apply a 12 month warranty as the customer will feel that we have confidence in the long term operation of the product and it is also tamper evident so warranties are void if someone tries to repair it themselves.

    Of course in this instance the price will have to go up due to the extra costs involved to set up the service.

  12. #12
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    Quote Originally Posted by Loy Toy
    It is my vote to apply a 12 month warranty as the customer will feel that we have confidence in the long term operation of the product
    it is very annoying having some gadget break down after a few weeks use and finding there is no recourse

    even the best of products are not always pefect

  13. #13
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    LT ,many countries u have no choice, as the consumer protection act requires you to give a warrantee.

    Implied warranties and conditions

    All goods and services sold to consumers prior to 1 January 2011 have warranties and conditions attached to them. On 1 January 2011 these warranties and conditions were replaced by the new laws on consumer guarantees. It is important to remember that your customers have rights regardless of whether they purchased goods or services before or after 1 January 2011, however the law applicable to these transactions is different.

  14. #14
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    Quote Originally Posted by Loy Toy View Post
    Quote Originally Posted by larvidchr
    If you want to sell globally! you really have no choice but setting up a warranty system for your retailers and costumers, since many countries have mandatory warranty laws on all products sold.
    Good point mate but I have been told unofficially that you may offer a warranty period at your option and the buyer can either purchase the product with or without one.

    Q: Does a manufacturer have to warranty their products?


    A: The Warranty Act doesn't require any manufacturer to provide a written warranty, but allows manufacturers to determine whether to warrant their products in writing. Once a manufacturer decides to offer a written warranty on a consumer product, however, it must comply with the Warranty Act.

    Just checked and as Peterpan posts above there is no choice but a warranty -

    I do not know about other places specifically, but in Denmark we have a law called (Koebeloven/ buy law) it supersedes all warranty's and agreements producers might make, it gives a mandatory 2 year warranty on all products sold, whether the producer offers a warranty or not, the producers can not offer a warranty that is worse than that law and places the costumer in a less favorable situation such a warranty is void and not worth the paper it is written on. any warranty's must therefore give the costumer even better protection than the law.

    Products sold must be able to work in a satisfactory manner for 2 years that goes even for used products. ( I remember when this law became mandatory especially used car sales people complained a lot, and to be fair it did make used car prices go up )

    If a product is faulty or breaks down the seller must either replace or fix the product alternatively give the money back, and is given only one chance to repair the product.

    I suspect the laws in some of the countries we compare with are very similar.

    So there is no way around a 2 year warranty as a minimum in Denmark.

    Last edited by larvidchr; 09-03-2012 at 02:55 PM.

  15. #15
    Philippine Expat Davis Knowlton's Avatar
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    Turns out I don't know shit. I asked the wife what she would do. She went to her desk and pulled out a thick file marked "warranty papers". Every fucking thing we have ever bought. So, LT, that's the Philippines heard from...and me properly put in my place.

  16. #16
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    ^ & ^^ & ^^^ and on thanks for your valuable input.

    Warranties do vary from country to country as does the safety compliance requirements.

    For instance any of our products sold in the USA must be certified and documented to meet the FDA health and safety standards but these rules do not apply for many other countries.

    We have set about making the product to meet these standards but with that the price increases dramatically because we will have to use higher-tech components.

  17. #17
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    there is a lot more to a bucket than the handle

  18. #18
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    Never bother with warranties if it goes wrong I buy a new one.

  19. #19
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    Quote Originally Posted by DrAndy
    there is a lot more to a bucket than the handle
    We are diversifying Doc.

    I would suggest you do the same as prostrate inspections must get boring after a while.

  20. #20
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    ^

  21. #21
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    So lets get back on track............

    1. Davis has a stash of broken appliances that he has never claimed warranty on but is hiding them from his wife.

    2. daveboy is like me and never claims warranty.

    3. Lars rarely claims warranty but should get a job as a warranty claims lawyer along with Peter Pan.

    4. Harry wants me to take a maths test.

    5. Sunsetter wants to claim warranty on a 30 year old pair of flip flops.

    6. Smug man couldn't be bothered but is pissing himself laughing.

    Moreover claiming warranty is a pain in the butt with the original retailer referring you to some office 100 miles away.

    The only warranty I have ever claimed is for a car which normally can be fixed at the place of purchase.

  22. #22
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    Quote Originally Posted by Loy Toy View Post
    Quote Originally Posted by Smug Farang Bore
    I think you'll have to go through the process LT.
    It is my vote to apply a 12 month warranty as the customer will feel that we have confidence in the long term operation of the product and it is also tamper evident so warranties are void if someone tries to repair it themselves.

    Of course in this instance the price will have to go up due to the extra costs involved to set up the service.
    It's what I would do mate.

  23. #23
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    It's not easy, I am continually paying for a product i acquired almost 5 years ago, about once every month it develops a leak and it has been like that from when I first got it

    Going to the complaints department and suggesting a fully functioning replacement for the duration of the repair periods just ended with me having an instant leak as well.

    In the end it works out that - the costumer is not always right

  24. #24
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    satisfaction of not only the product quality but the associated ease of getting it fixed/replaced when it does not function properly is something that is remembered by the customer and will pass in his word of mouth recommendations to others. If your going to be marketing this item in trade magazines, you will want to stand behind your product so as to have good and satisfied customer.

    I would not consider a $250 electronic item as being inexpensive. If I were to spend that much money on an item, I'd want to know that if it did not function properly or broke as a result of poor component or assembly, I'd want to be sure I was covered with some sort of warranty. Return and replace policy may be preferable if your cost analysis proves that this is more economical for your distributors.

    Possibly consider having your retailers fill out the warranty card at time of purchase or maybe even allowing for on line warranty submission.

    Bottom line is that the customer is going to have to be comfortable knowing that the item is going to work and will be replaced/repaired within a specified warranty period if they are going to spend $250+.

    Wishing loads of success with the venture.
    "Don't Sweat the Small Stuff....and it is all small stuff"

  25. #25
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    Quote Originally Posted by larvidchr View Post
    ....... In the end it works out that - the costumer is not always right
    so true but he does has to be satisfied if there is any repeat business of good word of mouth for the item to be passed.

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