November 15, 2024

Bucks Blog: A New Web Portal Doubles a Product’s Warranty

It’s an age-old question: Should I buy the extended warranty?

With few exceptions, consumer advocates say extended warranties typically are not worth the money. But what if you could double the free warranty coverage that comes with the product, at no additional cost and without the nerve-grating sales pitch?

The company FreeWarranty.com makes such a promise: It says it will double the original manufacturer’s warranty — up to a year — on anything consumers buy through their Web portal, which then ushers you through to the actual merchant’s site where the purchase is completed.

The extended warranty essentially covers whatever the original manufacturer’s contract covers (and it doesn’t cover accidental damage or normal wear). Tom Forrest, the founder and chief executive of the site, says the extension is similar to the ones provided by “premium credit cards but without the stringent acceptance criteria or high annual fees.”

Which raises a good point. Before you decide to shop through their site, you’ll want to make sure you’re not replicating what your credit card already covers. American Express, MasterCard and Visa, among others, offer similar benefits.

Before you get started, you need to set up an account that requires only an e-mail and password. Remember to log on before you start to browse through FreeWarranty.com’s wares, which are heavily weighted toward electronics, with items ranging from Apple’s iPod to the Xbox 360. But the site also features housewares, luggage, toys, games, watches and some other products that don’t exactly pop to mind when you think about warranties. Bird cage litter, anyone?

The maximum length of the site’s extended warranty is listed next to each item. So it might say, “up to six months” or “up to one year.” That means if the original warranty is one year, then the extended warranty will be for an additional year.

But before you commit to buying anything through their site, you’ll probably want to do some comparison shopping around the Web. After quickly perusing the site on Monday — by coincidence, Cyber Monday —  I found two merchants on the FreeWarranty.com site offering a 6th generation iPod Nano for $172.79 and $126.30 (plus $3.99 for shipping). But I was also able to find comparable or better deals elsewhere.

Amazon.com was selling the Nano for $119, and it offered three different warranty options (for two and three years), ranging from $11.99 to $18.99. Shipping was free. The total cost was about $131, with a two-year warranty. Or $138 with a two-year warranty that included drops and spills.

Target was advertising the Nano for $114, though I’d have to go to my local store to pick it up. It also offered a “two-year replacement service plan” for $17.  Best Buy charged $119.99 with free shipping, but the protection pricing was much more expensive, or $24.98 for a one-year accidental protection plan or $44.99 for a two-year accidental plan.

On the Apple site, the Nano was listed for $129 with free shipping. For another $39, you could buy an AppleCare protection plan, which extends coverage to two years from the purchase date.

Besides shopping around, you’ll also need to consider what you may be giving up by shopping through the portal. Several credit-card issuers offer extra points for shopping through their own portals, while discount sites like Ebates and FatWallet offer cash back or other rewards when you go through their Web sites. The same goes for UPromise’s portal, which provides cash back that can be deposited into a 529 college savings plan, used to pay down student loans or put toward other college expenses.

You also have to have faith that FreeWarranty.com will be around as long as your warranty. Mr. Forrest said that for every item bought through the portal, a proportional amount is accrued in a reserve account for repairs, replacements or refunds. He said it has a similar business model to other shopping portals, where the retailers pay advertising fees for sales generated through the site.

“Though new, our company is financially secure and has raised significant capital to ensure that the company will satisfy consumers for a very long time,” he added.

Readers, what do you think of FreeWarranty.com’s Web site?

Article source: http://feeds.nytimes.com/click.phdo?i=20fc9b82a9e5eff9f97e105ffd6bada2

You’re the Boss: Finding the Nerve to Take an Advertising Risk

Part of the Austin Humane Society campaign.Courtesy of Austin Humane Society.Part of the Austin Humane Society campaign.
Branded

One of the hardest things to do in business is to take a risk with your advertising. I’ve made ad campaign presentations to fiercely competitive, Type A owners and here’s what happens:

A proposed campaign is presented that meets the creative brief, nails the marketing objectives and is not similar to anything that has been done in the company’s industry. Minute one, the chief executive’s face is euphoric, almost giddy. Minute two, more of the same as the C.E.O. imagines how far a truly new campaign might take the company. And then we get into the third minute and the rush of possibility recedes, deflated by the annoying arrival of self-doubt.

I know how hard it can be to take a risk, to try something different. I’ve been there, sweat behind the knees and all. It’s not pretty. The one mental mechanism that does seem to help me take the leap is reminding myself that sticking to the same actions is very likely to produce the same results. Is that what the situation calls for? That’s typically the mechanism that convinces me to move in a different direction. Of course, I also tend to look at the office’s lucky troll doll to see if its hair has gone white. I was reminded of this recently when the Austin Humane Society engaged our agency for help coming up with a new campaign.

The organization hadn’t tinkered with its brand for 15 years, and it had some big goals it wanted to achieve. First, it wanted to increase donations to keep its no-kill pet adoption center in Austin strong. The executive director, Frances Jonon, and the director of development and marketing, Amanda Ryan-Smith, knew that doom-and-gloom campaigns tend to work in their business — but only in short bursts. That approach can also lead to what’s known in the fund-raising world as “donor fatigue.”

To sustain the organization for the long-term, Ms. Jonon and Ms. Ryan-Smith thought they might need to step away from those types of campaigns. But it was a thought that scared them. “We were terrified, quite frankly, about moving away from the negative tactics because we know it works,” Ms. Jonon said. “Our industry heavily uses the ‘pets are dying!’ message because it provides a quick fund-raising fix.”

We were ecstatic. This client recognized that moving away from the standard campaign was the way to go. Our team, headed by our brand strategist, Suzanne Kyba, conducted a series of workshops with executives and staff at A.H.S., along with interviews with key donors. We wanted to gain insights from those closest to the organization. We also wanted to test the hypothesis that a positive message could have as much impact as the puppies-in-dumpsters approach. As part of the process, we uncovered some untapped opportunities that seemed to resonate with the audience. We uncovered some statistics about how animals not only enhance the emotional lives of owners but actually create physical changes — helping the heart, mind and body. In other words, while saving an animal’s life, people can also extend their own.

With this information, we developed a positive campaign platform of “Transforming Lives,” which refers not only to pets but to the lives of people who donate and adopt them. When we made the presentation, Minute One went well. Minute Two was more of the same. And after the all-important Minute Three, the A.H.S. executives were still on board. They approved the positioning with the new tag line and positive rallying cry, “Unleash Hope.” “We always knew that was a place we wanted to move to, but we just didn’t know how to get there,” Ms. Ryan-Smith said.

The next step was to bring the campaign to life. Staying the course, the campaign focused on the lifelong bond and emotional connection between pet and owner, as well as the impact animals and people have on each other. Posters, interior signage, direct-mail pieces and their mobile adoption vehicle, the Adoption Waggin, highlighted the messaging in a fun (but heart-tugging) way. Four humorous videos were produced featuring animals speaking with each other about their various needs, perceptions and misperceptions about shelter animals. We revamped the A.H.S. Web site with custom online tools to showcase the pets up for adoption, highlighting aspects of their characters, personality traits, habits and special tricks. And, because music helps us make those important emotional connections, we recruited 100 Austin-based bands to donate songs that A.H.S. staffers matched with animals to better display their personalities. We also created an online game called Trapcat to offer an entertaining and educational glimpse into the population-reducing benefits of feral cat trapping.

So far, the results have been good. This year, despite the down economy, Ms. Jonon reports there has been a 13-percent increase in overall fund-raising and donations. The annual holiday appeal alone doubled what it had done in previous years. And, for the first time A.H.S. had more than 3,000 adoptions in a year.

MP Mueller is the founder of Door Number 3, a boutique advertising agency in Austin, Tex. Follow Door Number 3 on Facebook.

Article source: http://feeds.nytimes.com/click.phdo?i=6ec3fcf6aecd740afdc41a1b45774da4