Costco Connection - August 2011

inside costco

TV warranties, Costco style

MEDIA BAKERY

If your TV does need service, Square Trade will either fix your TV in your home or pay to have it shipped to a service center. TVs 37 inches or larger are repaired in-home; smaller TVs are repaired at a service center. If Square Trade can’t fix your problem quickly and efficiently, you’ll get a 100 percent refund on the price of your TV.

Costco offers members a square
deal on extended TV warranties
By Will Fifield

IF YOU’RE SKEPTICAL of extended warranties for TVs, you’re not alone. Millions of consumers, and many experts, are wary of them. But anyone who has experienced the benefits that extended warranties confer can attest to the sigh of relief they bring when something goes wrong.

“Members have been asking us about
extended warranties for their TVs for years,
but Costco has steered clear of them in the
past because we felt the industry in general
has had a very poor reputation for service and
value,” says Steve Messmer, Costco assistant
general merchandising manager. “We felt
most service plans were too expensive and
too hard to use.”
However, SquareTrade, a leading pro-
vider of extended warranties for consumer
electronics, has simplified the process and
figured out how to deliver great customer ser-
vice. “In short, they do extended warranties
Costco style,” Steve says. “That’s why we’re
partnering with them to offer our members
the warranties they’ve been asking for.”
authorized dealer. Here are the warranties
you’ll find at your local warehouse.

How it works

It’s easy to use these extended warranties. After you purchase one, register it online with Square Trade, so that all the details of your warranty will be stored electronically. Or simply call Square Trade at 1-877-WARRANT-Y (877- 927-7268).

Keeping it simple

In true Costco fashion, there are only three extended warranty options at your local warehouse, each at a tremendous savings compared to competitors’. The warranties’ costs are based on the TV’s purchase price and provide an additional three years beyond the two-year TV warranties Costco has had in place for years. The new extended warranties cover TVs purchased at Costco or any other

extended warranties

The three-year warranties (also called service plans) available at Costco begin after the manufacturer’s warranty and Costco’s Concierge plan ends, giving you a total of five years coverage.

A service story

When R. Foster of Columbus, Mississippi, bought a plasma HDTV from a retailer, he didn’t think he’d have a problem. However, it was a big investment. “I had always shied away from extended warranties because of the excessive expense,” he says. Because Square Trade offered an extended warranty at a low price, he opted for the coverage.

It paid off. “In less than two years the TV failed to turn on,” Foster says. A power supply that cost $400 was identified as the culprit. “I can’t believe how fortunate I am to have had a Square Trade warranty,” says Foster.

Foster’s story is not that unusual. Most modern TVs are powered by complex circuitry, which can be expensive to repair if it malfunctions. If the motherboard goes out, for instance, the repair will usually cost about 60 to 70 percent of the TV’s original purchase price. According to Steve Abernethy, Square Trade’s CEO, without a warranty, consumers typically pay a $100 minimum for a technician to visit their home, and it goes up from there depending on what’s wrong with the TV and how long it takes to diagnose.

Reservations about extended warranties are common. But Square Trade’s price and service regularly result in glowing reviews from customers all over the world, earning the company awards and global recognition from the World Economic Forum.

If you’re thinking of buying a new TV, and protecting your investment makes sense, you’ll find Square Trade warranties on a pallet at your local Costco warehouse, or online at Costco.com. Enter “SquareTrade” in the search engine on Costco.com’s home page. And then breathe easy. C