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I still have the one rod I've used for 40 years and it is still unbroken. My new Gatti is also unbroken. I would rather have lower prices than unlimited guarantees, but they are handy if needed. It would be unthinkable to take some form of unethical advantage of this type of guarantee, but there are always some who would do it.
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Its all basic business.
Choice 1. Rod cost + profit + marketing = sales cost
Choice 2. Rod cost + profit + marketing + cost of warranty repairs = sales cost
The cost to issue an insurance policy on rods is a calculatable expense and I assume that rod companies make a calculation and plug it into the cost structure when issuing a lifetime or extended warranty.
The reason that it has caught on is that people want it. If not, then declining sales on those rods would reflect the lack of desire.
I think that this type of warranty adds a level of complexity to the pricing equation, but "thats capitalism". The only other factor is lack of sales/profits from not selling additional rods. That too can be calculated now that there is some history behind the newer "no fault" warranties.
jed
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I broke a Winston Ibis and knew it was my fault. I returned the rod with a confession of what I did and fully expected to pay for the new tip section. They repaired and returned it to me no-charge even after I offered to pay for it.
If I buy any product and am offered an extended warranty for $$, I always decline. In the fly rod world, we don't have that option. If they did offer it both ways, would you pick price or warranty?
Either way, A lifetime warranty seems excessive when the rods seem to get outdated quickly and are no longer be produced with the same materials.
As long as they offer the "no fault" clause, I think people can & will take advantage of the warranty.
Norman
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i think the unconditional warranty has helped smaller companies compete. i don't think that redington, in the past, or tfo in the present would have ever gotten off of the ground without the warranty.
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Why not claim for a rod breakage if it was your fault? afterall you are paying a sort of insurance with the higher price. If a company offers to replace an entire rod for ?20 (30+ dollars) do you think it costs them more than that to produce the rod in the first place?
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Born to fish, forced to work.
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If you do the math it would cost the rod company huge amounts of revenue to offer rods with no warranties for reduced costs. Just to keep it simple say a co. can produce 1000 rods.
1000 x 500.00 = $500,000.00
1000 x $400.00 = $400,000.00
difference of $100,000.00
assume 5% return rate for breakage
1000 rods x 5%= 50 rods
50 rods x $300.00 cost = $15,000.00
net revenue loss of $85,000.00 on 1000 rods with no warranty. Company would need to sell 1250 rods @ $400.00 to make the same $500,000.00 revenue not counting extra cost of production and distribition. That is why in my opinoun that the companies offer the warranty.
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JC's article opened up the other side of the problem for me . Lots of stuff I wouldn't otherwise have given a thought . Like how the Rod makers might feel about the situation . I have a better understanding now about the whole picture instead of just one side . Armed with this knowlege I have decided that I really don't know diddly squat about it .Therefore have decided that henceforth to quit complaining about something I know nothing about and just go fishing something I do know something about .
I dont always agree with Castwells articles but this one is a good one .
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I could be wrong , It seems unlikely , but I suppose it could happen.
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"and grnmtnman--i didn't refer to the cost of the car--my question was if you crashed your car, and it was your fault, would you use your insurance to have it repaired?"
Dave,
Danged right I'd use that expensive insurance I'm paying for; same if my house burned down. And, I'm sure your statement applies to, would I use the warranty if my rod broke cause I already paid for replacement in the inflated cost in the first place. Is that a fair assumption? As previously stated, I offered to pay for the replacement of the rod I broke in the car door and the company sent me a new one.
But, as stated I'm an ignoramus when it comes to knowing what the actual production cost of a rod might be versus the selling price. Do you think the $600.00 rod cost about $300.00 to produce and the extra $300.00 sales price is what you're paying for a possible future replacement warranty? That seems to be the thinking from what I can detect.
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"Politicians and diapers should both be changed regularly and for the same reason."
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no, i'd be amazed if a $600 rod cost $100 to produce. A $600 rod is sold to the shop for $300 (or less). The shop charges you $600
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I have told this story a few times. I have borken one rod and actually I like to blame it on the 40 lb. king salmon on the other end of the line at the time the rod broke. Anyway the rod has a lifetime warranty and I could have it replaced at no cost to myself. Instead the rod which is in 4 pieces now (it used to be only 2 pieces) is hanging on the wall of my tying room along with a picture of the last fish it caught. No way is that rod getting replaced.
[This message has been edited by Kerry Stratton (edited 07 November 2005).]