TALLAHASSEE, Fla., Nov. 19, 2018 /PRNewswire/ -- It's nearly Black Friday — the day of the year when consumers are most likely to impulse shop. Last year, consumers spent $5 billion on Black Friday, according to CNN. Here's why consumers are should buy an extended warranty on their Black Friday impulse purchases:
Less likely to check reviews. Compared with other shopping days, consumers are half as likely to read reviews before making a Black Friday purchase. That means they may end up with a product that's a lemon that's more likely to need repair or replacement than other purchases.
Less than $400 in savings. A recent study by the Federal Reserve shows 4 in 10 adults faced with an unexpected expense of $400 would either not be able to cover it or would cover it by selling something or borrowing money. A service contract closes the gap by making sure consumers don't have to discard their new smart TV, phone or other electronic device when it breaks down.
"Free-look" period. Most states provide consumers the option to try out a service contract for 30 or 60 days with no strings attached if they want to cancel. The Service Contract Industry Council has successfully lobbied for changes to dozens of state laws to enhance consumer protections.
Murphy's Law. A 2016 survey of American consumers by SCIC found that 70 percent reported having broken an electronic device in the past year. That's an expensive problem, given that the average touchscreen malfunction can cost up to $399, according to SquareTrade.
Electronics service contracts are sold at the point of sale or post-purchase, even covering smaller products such as e-readers and video games. Consumers purchase millions of service contracts annually, citing peace of mind and time saved tracking down repair vendors. While consumers make extra-fast buying decisions on Black Friday, SCIC encourages buyers to slow down long enough to weigh the benefits of a service contract.
The Service Contract Industry Council is a national trade association that works with lawmakers across the country to develop fair and uniform regulation of the service contract industry. Learn more at www.go-scic.com.
SOURCE Service Contract Industry Council (SCIC)