Who benefits?
"Extended warranties are margin-makers, but the whole idea behind this cover is to make it very cheap," said Raja. "It's designed to encourage people to build their own PCs and has the additional benefit to us of simplifying the RMA process."
SCAN's research revealed that over 70 percent of RMAs happen within the first 28 days. It's hoping that taking the fear out of building a PC will boost the component market. "The SI market is declining in relation to notebooks, but people are building their own PCs," said Raja. "This is a brand new product, that hasn't been seen anywhere else in the IT industry."
The cover is added by default when checking out a basket of items which includes components. We asked if there had been any resistance to this from customers and Raja pointed out that in the 24 hours it's been running he's had no complaints and, furthermore, that it's very easy to opt out of.
Here's a trial run we did earlier.
