Big box stores love to advertise “lifetime” warranties. The idea is that when a consumer hears the word “lifetime” they will think that carries more weight than 5- or 10-year warranty. This would be true if “lifetime” warranties were not limited and prorated. Let’s dig a little deeper.
There are two general types of warranties, pro-rated and non-prorated. A typical non-prorated warranty offers full coverage on parts and labor for a limited time, usually for 5 or 10 years. The time frame varies by item and manufacturer. A prorated warranty (also known as limited lifetime) offers limited coverage of an item for the specified time, normally a “lifetime”. Lifetime is often defined inconsistently by stores and manufacturers. Lifetime of a piece means the warranty is good until the cover wears out or wears through. These are highly subjective. Guess who makes the decision — the store and manufacturer.
So far, you might still be thinking that a “limited lifetime” warranty is better than one that’s for 5 or 10 years, but looks can be deceiving. Let’s look a little more. Every limited lifetime warranty that I have ever come across has a 1-year parts and labor coverage tacked onto the lifetime portion. What this means is, for the first year, you have complete coverage, after that the manufacturer covers parts only, you cover labor. Guess what, parts are CHEAP, and the real cost is in the labor.
For example, a typical recliner mechanism cost $20.00. Most furniture repair technicians charge about $50.00 an hour, as well as a service call charge. After the repair technician went to the customer’s home, spent about two hours removing the old and installing the new mechanism, the tab came to about $160.00. That means the customer was out $140.00 of the repairs. This scenario can happen in as little as one year and one month. With this same repair scenario and a 10-year non-prorated warranty, the customer would be out $0.00. Furthermore, if it’s a well made piece and after eight years of hard use, the mechanism fails, guess what, you are still covered and it still costs you nothing.
The next time you are out shopping for upholstery, be sure to ask in-depth questions about warranties. For example, “Will the warranty on this piece outlast the interest-free term on your financing plan?”
Come to our store and see first-hand what a 10-year non-prorated warranty is all about and be amazed at just how affordable quality furniture is.
By Michael Lashley
