PC World: How Small Businesses Can Unravel the Extended-Warranty Conundrum

The conventional wisdom has always held that extended warranties are a sucker’s bet. It’s often said that businesses far and wide—from automakers to computer companies—make more money on the sale of extended warranties than they do from the actual products they make. Consumer Reports has led this charge for years, finding that retailers that push extended warranties and service plans keep 50 percent or more of what they charge for them.