Should 2nd. Buyer Receive Guarantee ?


Some manufacturers like Cary an CJ to name two make great stuff but they refuse to honor any remaining warrantee to 2ed. buyer. I think that sucks ! It certainly reduces the potential selling price for anyone wishing to sell relatively new stuff. Does this upset anyone else or do you think it is justified ?
stokjoc

Showing 2 responses by 3728slingshot

As a manufacturer, I can see good reason to discontinue warranty to 2nd owner. There are just too many places for a dishonest person to take advantage of transferable warranty. Companies that transfer warranty are probably builing into the cost of the product enough $ to allow continued support of the product past the typical ownership cycle (should it be shorter than the warranty period). In reality, a quality product should only ever need minor repair ... I consider any product that I need to use the warranty for a faulty design or lemon example of a good design. 'Nuf said.
What about this?

The manufacturer sells product to a dealer, the dealer sells the equipment and showcases it in his test rooms. The dealer orders new product on a continuing basis and PAYS HIS INVOICE TO THE MANUFACTURER ON TIME. Products sold through the dealer are known to be new and working. These products are warranted by the manufacturer. The dealer takes in a 2 year old processor on trade from a customer ... he tests it and puts it on his rack for used gear. If something goes wrong, HE will decide if HE should take care of it or if he wants to ask the manufacturer to do something. He represents the manufacturer to the public and has a relationship with the manufacturer. Even if the unit is out of warranty, the manufacturer may make a repair for free based on the dealer's request, or the delaer may eat the repair in the interest of good consumer relations.

Vinny, haunts yard sales, pawn shops and estate sales buying up all the hi-end audio gear can find. Vinny's hi-end audio system at home is a Bose wave radio. He has a current, hi-dollar, product for sale on his web site for 60% of what a dealer wants for it new. After Vinny sells the product, does he call the manufactirer to order a new one for stock? Is he a qualified technician? Is the product known to be in good working order, never abused? If the product fails after nine months because it had hidden damage at the point of sale, who is responsible? Is Vinny able to resolve operational issues? Can Vinny make a quick fix to a minor problem? Vinny is probably not going to eat the repair, and probably has no relationship with the manufacturer. Vinny is no friend of the manufacturer.

When a manufacturer makes a warranty policy decision as we are discussing, it is a double edged sword. From a standpoint of brand image it is good to support transfered warranty. From a sales view, the dealer that places orders with your campany and pays his bill is the most important person in the world. A policy that encourages a person to buy from the dealer, new OR used, is the best policy for long term sales of new product. 'Double dipping' for repairs on 2nd owner product is not even a conversation ... there is so little money involved compared to new unit sales that it isn't a motivation. 'Double dipping' as some have phrased it, is a motivation to the consumer to buy new or used from the delaer that represents the manufacturer.

I'm sure to ruffle a few feathers ... this is just a reality in the world of business. Most decisions like this boil down to the bottom line. Remember, this is a hobby for us, a living for others.

In case you are wondering, I am VP of Operations at a medium sized sized manufacturing facility. We sell only to dealers, and hold them close as our most important non-tangable asset.

As always, I thank all who endure my soap box ramblings.