Thanks for this thread as I was in GC in Cherry Hill NJ, looking at 3 amps. Them being a Line 6 Spider, Marshall Half Stack, or a Mesa Boogie Lonestar. I called the salesman the next day about extended coverage & really recommened I get this & here's why. I worked at a company 7 years ago called American Appliance based out of NJ also. What happens is it goes like this, the manufacturer gives the company a set price per unit. For example the Mesa Boogie lonestar retails $1699.99 which means GC may have only paid $900 per unit. What then happens is the stores are charged a price which is store cost not company cost which may $1250.00 which means evn if sold at cost the company really doesn't lose. If that salesman sales me the amp at the $1699.99 his spiff from Mesa Boogie may be $30.00 + his 2% commision from GC. If he sales that amp below $1699.99 his spiff drops + his commision. If you notice their website prices are a lot different than in-store which means there is room to play with the price or fluff is what is known in retail. However the rael money is in extened warranties which is 20% at the end of the month. The warranty for the Mesa Boogie was 5yrs. for $300.00
So the salesman will make:
$30.00 Mesa Boogie reward for having sold their product
$50.00 2% GC commision
$60.00 20% of extended warranty
---------
140.00 total dollars paid the sales associate & you can now see where his longest green came from
Extended warranties can be helpful at times trust me, but pick & choose your spots with them. If I spend that kind of money i'll have it protected under my renter's insurance but if that wasn't the case I may purchase something extra depending on who is going to do the repair.