- Joined
- Jul 30, 2004
- Messages
- 290
It looks as if most people make full use of the long warranties on Leathermans etc. - most of the time they seem to just send you a new one as a replacement 
How do LM actually make money if everybody keeps doing this ??
OK - they are priced quite high initially to work in the cost of future repair/replacement but still if over the 25 year period someone sends their tool in say half a dozen times, surely that would mean they lose money overall ???
Plus the fact that they are selling less of the new product too cos everyone just sends them back if anything goes wrong ???
Im guessing here....
Charge retail about $99
Trade maybe about $50 ??
Cost maybe about $25 ????
So LM make about $25 bucks on each Charge they sell to a wholesaler - if they replace it once, they are breaking even and if they do it again they are down $25 ????
They must depend on the fact that the vast majority of buyers dont make use of the warranty to make up for the ones who actually do !!! ( LIKE US
)
So, if that was the case, why do they offer such good service on their warranties which makes buyers all the more likely to use it ???
Naturally, their warranty helps their brand and in turn increases sales but by how much - I know I would still buy a Charge even if it had no warranty what so ever !!!
And why do LM choose 25 years as the length of cover - why not Lifetime like Victorinox which would give them a better image but would most likely not increase their repair costs as most people with a 30 year old tool would probably love to get a new one with all its better features etc - or why not just a 10 year warranty as I doubt anybody would feel cheated if their purchase gave them 10 years of solid performance before they needed to upgrade ??
Not that I'm complaining !!! Just wondering, thats all !!!!
How do LM actually make money if everybody keeps doing this ??
OK - they are priced quite high initially to work in the cost of future repair/replacement but still if over the 25 year period someone sends their tool in say half a dozen times, surely that would mean they lose money overall ???
Plus the fact that they are selling less of the new product too cos everyone just sends them back if anything goes wrong ???
Im guessing here....
Charge retail about $99
Trade maybe about $50 ??
Cost maybe about $25 ????
So LM make about $25 bucks on each Charge they sell to a wholesaler - if they replace it once, they are breaking even and if they do it again they are down $25 ????
They must depend on the fact that the vast majority of buyers dont make use of the warranty to make up for the ones who actually do !!! ( LIKE US
)So, if that was the case, why do they offer such good service on their warranties which makes buyers all the more likely to use it ???
Naturally, their warranty helps their brand and in turn increases sales but by how much - I know I would still buy a Charge even if it had no warranty what so ever !!!
And why do LM choose 25 years as the length of cover - why not Lifetime like Victorinox which would give them a better image but would most likely not increase their repair costs as most people with a 30 year old tool would probably love to get a new one with all its better features etc - or why not just a 10 year warranty as I doubt anybody would feel cheated if their purchase gave them 10 years of solid performance before they needed to upgrade ??
Not that I'm complaining !!! Just wondering, thats all !!!!