I used to work for Best Buy and I have to say a big percentage of their computer sales are idiots. The reason for this is Best Buy doesn't look for "computer geeks" to work the department
I applied to Best Buy as a computer tech. While I was being interviewed, another guy was being interviewed for being computer sales. I overheard the questions they asked him and I was kind of surprised. 90% of the questions were about sales and not about computer knowledge. For example, one of the questions I remember the manager asking was, "Name 12 accessories you can sell along with a printer." 12 accessories?!? I can only think of maybe 4 off the top of my head. Instead of hiring a trained computer person, they hired the person who can sell the most accessories along with a product.
Everyone who works for Best Buy gets paid by the hour. Employees get no more or less money for selling more extended warranties. The warranties however, can get you promoted. Best Buy doesn't officially say that you have to sell extended warranties but it's like an unwritten rule. You can sell 0 extended warranties for the whole time your working their but don't expect much as it will become a dead end job. If you think you are hounded now to buy extended warranties, just wait til you pick up items you ordered online in stores. Best Buy doesn't sell warranties online so they loose alot of potential warranty sales when people buy online. Some people who buy items online and choose to pickup their items in store will get hounded the most. Since the products they buy are "naked" products, once you pickup the item, the sales will give you the bit on how you need a PSP/PRP for your item.
Best Buy makes money on 2 areas; PRP/PSP (Extended Warranty) and accessories. Best Buy sells alot of it's computer components at a lost to them. They make up for this lost for example buy ramming 12 accessories down your throat while you buy a printer or etc. Accessories like inkjet paper, printer cartidges, etc are marked up like 40% from their cost. I check a HP cartidge for $29.99 and their cost was $12.67? Best Buy loves it when people just come and buy accessories. It's their biggest money maker.
How do I feel about PSP/PRP's? I feel
some PRP's (Product Replacement Plan) are actually really good deals. What's the difference between PRP and PSP? PRP's usually cover your item for 2 years where as PSP's cover from 3-5 years. The word
Replacement is kind of misleading since they plan doesn't replace your item at all. What it does it if you item goes bad you call the 800 number on the place brochure and they will refund the price you paid for your item including tax. Best Buy's reasoning behind this is alot of customers don't want the same item that went bad on them so this option gives the customer the chance to a) get the same item, b) get another item for the same price or c) use the money to purchase something else in the store.
The only downside to this is the money given back to you is in the form of a money order so you have to spend it in a Best Buy store instead of getting actual cash back.
For PSP's they service your product up to 3 times and after that they replace the item with a new one. I usually don't get PSP's since I pick items that are usually covered within the PRP instead.
Alot of people go into Best Buy and buy PRP/PSP's without any real knowledge of what the plans really do. They only know what the CSR tells them. (which usually fluffed up or a big fat lie) Now hopefully you can make your decision on your own and not because your pressured by the CSR
-Jimbo