Future Shop – Traveling Mark

Samsung N150 Netbook Canada

My awesome Samsung laptop was gone and all the data on it went with it. It was a horrible loss the repercussions of which are still very much painful. However, this milk was already spilled, crying over it would not make it better. It was time to move on and start looking at buying a new laptop. This time around I took well into account the most important argument one mustn’t forget when buying a laptop to travel overseas with. I was more than happy with the Samsung laptop I bought before and the same company has just released a new netbook with latest Intel N450 processor (known for low power usage) so I went to take a good look at it. It was called Samsung N150 and like it’s bigger brother, it was only available in Mac like white in Canada.

That bothered me not. I knew Samsung makes solid portable computers and as I was looking up N150’s specs, I had no doubt that just like Q320 in laptops, this is the best netbook on Canadian market and it’s also the best value for money. Unlike great deal of its competition, Samsung N150 netbook was sold for $399 or less at Canadian big box electronics stores which beat many inferior models by $50 to $100 Canadian.

Future Shop Canada had Samsung N150 listed for $399 and since I bought my previous laptop with them, including an extended warranty (never ever again), I thought of giving them a call to see if they’d be able to work something out for me. Afterall, I had just spent $300 half a year ago which they can stick right in their pocket as there will never be any warranty claims against that purchase. I phoned the Future Shop location in West Edmonton where I bought my laptop and asked to speak with the computer department manager. It was a bit difficult to get to him but I was persistent as non managerial person would not be able to address my issue.

I eventually got a manager on the line and explained that I had spent $300 for 3 years of extended warranty with Future Shop but the laptop was stolen so I won’t make any claims with it hence basically all of it goes unused because the laptop was still under manufacturer’s warranty. I told him that I would be interested in purchasing a new laptop with them if they were able to work out part of the money I spent on the extended warranty towards the purchase of my new Samsung N150 netbook.

The manager was a complete ass and acted like the world belonged to him. Once he was done explaining how important he and the company he works for were, he mentioned that he would be able to put part of the extended warranty I had already purchased towards the purchase of a new extended warranty. In other words, I lost $300 once and he used it as an opportunity to upsale me with another rip off extended warranty. Nevermind the fact that Samsung Q320 which I had stolen was more than 3 times as expensive as N150 so extended warranty for my new netbook should be less than one third of what I paid for Q320. That means that not only should I get the extended warranty for free, there should be the left over money on it to use towards the purchase of the netbook itself.

At that point the manager concluded that he needed to go and couldn’t discuss this matter with me over the phone. I went to visit said Future Shop in person yet when I asked for the manager and explained who I was, I only got a message that he’s not coming out of his hiding, but one of the staff can work out some kind of a discount for an extended warranty I should purchase for my new netbook. Wow! What a manager. Extended warranties are not worth it to begin with, no matter what kind of discount he’d offer, I’d be losing on it, Future Shop would be the only one benefiting. So they were using my huge financial loss for their own enrichment and the manager didn’t even find the respect to come and greet me and talk to the staff on my behalf. Future Shop – you can keep my $300 I spent for the extended warranty on Q320. I will not ever buy from you again!

I went to the nearby Best Buy Canada shop and checked out what they had there. I really enjoyed the treatment there much more than in Future Shop. Too bad they didn’t have Samsung Q320 when I was buying it prior to my first departure. I would have bought from them but at that time the model was just released and Future Shop was the only outlet in Canada that carried it right away. Best Buy started to carry it later, but I was already gone.

I tried a nice N150 at Best Buy and definitely loved everything about it, except from ridiculously low screen resolution. This was gonna be a tough one to get used to but it was only gonna cost $400 total so I had little room to complain. Best Buy sales people are not commission paid – unlike Future Shop sales people. You experience way less pressure at Best Buy however because Best Buy sells electronic with very little margin, their financial sustainability depends on sales people’s ability to sell extended warranty with each purchase. These try hard attempts to sell extended warranty were too blatant from start to end. I wasn’t even buying, just enquiring yet the debate kept going towards extended warranties all the time.

Never the less, the treatment I have received from people at Best Buy was far better than that from Future Shop so I had nothing to think about. However, the only Samsung N150 model they had in the store was the display one. Unfortunately, on top of already pre-loaded bloatware, Best Buy display models are loaded with more bloatware to display their own sales pitches, mostly geared towards promotion of their Geek Squad.

They expected a new delivery next week so I went home without buying. I still had a couple of weeks before the departure so I didn’t need to rush with the purchase that much. Oddly enough, Best Buy updates their prices on Thursday so when I went to check out their website the following week, I found the price of Samsung N150 dropped down to $369 Canadian. That was my cue – this netbook is not gonna go any lower than this. It was already priced extremely well for what it had at $399 but to see it at even better price was an instant cue to buy it while this special lasts.

I knew that Best Buy in West Edmonton was out of N150s when I was there (except from the display model) so I called them to make sure they did get a delivery of new ones before I travel half way across the city to buy it. Unfortunately, they didn’t. I called their North end location and those guys only had a display model too. That was kind of disappointing and as the days were passing by, I was getting closer to Thursday when prices get updated again so I eventually went and bought it online at BestBuy.ca – good idea.

Photo: My Brand New Samsung N150 Netbook

Processing of their on line orders is very smooth and fast. My netbook was shipped to me the following day from British Columbia and I got it the day after. From the beginning it seemed as though there will be a charge for delivery, but it turned out not being the case. It’s just that their website is a bit confusing. The good thing about buying on line is that you have no sales person throwing at you their well tested arguments to make you buy the extended warranty package. It is offered on one page when placing on line orders which I declined and that was it. I had my brand spanking new, super awesome Samsung N150 Netbook ready to roll. I was mobile again.

Extended Warranty – Worth It or Not?

I paid more than $300 for an extended warranty on a laptop I got stolen. That made the financial loss associated with the theft so much more severe and made me question the worth of extended warranties. I have done some research and found out that number of laptops that get stolen is significantly higher than number of laptops that need a pricey repair. What this means is that the chances that your laptop gets stolen (or lost – there is also a great deal of laptops people simply forget at a snack shop of an airport and won’t realize that until after takeoff) are far greater than chances of it breaking down. Taking all that into account – are extended warranties worth it or not? Let’s take a closer look at it:

Manufacturer’s Warranty vs Extended Warranty

Laptops, as well as other electronic devices come with manufacturer’s warranty included in price. In most cases, manufacturer’s warranty covers the product for one year and oftentimes applies worldwide. My Samsung Q320 laptop came with one year worldwide warranty and if you buy an equally reputable brand product, you will likely get the same with it. If something was unstable about the product you buy, it would show within a year of use. If on the other hand the product was solid built, chances are it will serve you well for many years without issues. That thing alone makes extended warranty NOT worth it. If there is an issue, it will show during manufacturer’s warranty. If there is no issue, chances are fair the product will work like it should way beyond the coverage of your extended warranty.

Photo: Sticker on My Laptop Signifying That I Came with One Year International Warranty from a Manufacturer

Extended Warranty Claims

If you look up statistics on the internet, you will find out that only about 3% of extended warranty cases end up paying for themselves. 97% of extended warranties purchased are a waste of money. The thing is that many people realize that they are facing a possibility of having the money wasted, but since extended warranty is a peace of mind, they are willing to consider that as an option. Sales people know that very well and have a handful of arguments at the ready to throw at you when you are buying a product. There is no wonder why extended warranty upsales make up for most of sales people’s wages. They are aware of statistics themselves and know that for the most part, vast part of extended warranties they sell will expire without any claims made, which literally means it’s hundreds of dollars straight in their pocket with nothing being given in return.

Cost of Extended Warranties

The cost of an extended warranty is not low at all. It’s typically 1/4 to 1/3 of the price of the item. So if you are buying a $1,000 worth of a laptop, you are looking at good $300 for an extended warranty. That’s a big chunk of money if you look at it. But it gets better – consider this:

If you do spend $300 for 3 years of extended warranty for your laptop, you will have your laptop “protected” until such time that it will be an obsolete piece of junk you won’t be able to use because modern application will not run on it. It’s a simple fact that technology progress is immense. You won’t even reach the end of your extended warranty and you will already start looking around for a new laptop that will contain all latest components cause your old one doesn’t have it. Had you not used the $300 for an extended warranty with purchase of this one, but used this money towards the fund for purchase of a new laptop, you’d be much better off right now. Because even if your laptop quits on you after three years, with an extended warranty you could get it fixed but end up with the same obsolete piece. Whereas if you put this money to work for you in the meantime, gain on its worth and use it towards the purchase of new laptop, you would end up with latest technology piece that will far and wide outdo your old one. Fast aging of electronic devices makes extended warranties not worth it. We’re not in the 1920’s when products were expensive, but were made to last. We are living in the age of disposable electronics. What you buy is not built to last, so don’t fix it, replace it.

Replacing a product after a period of use with newer, better, more feature rich and more up to date version is better than having an old one repaired on many accounts. Let it serve you for as long as it will and when its time comes, upgrade to a newer version. Gateway and Dell – makers of portable computers have both admitted that they have seen minimal increase in costs for warranty claims after they started offering extended warranties, but the increase in revenue grew substantially. That means that prior to offering extended warranties their cost of taking care of regular warranties may have been in the $16 Million mark, but as they started offering extended warranties, the cost of taking care of claims rose to $17 Million mark, but their revenue grew by $33 Million which came from sales of extended warranties.

Extended Warranty Scams

Savvy buyers know that many specialty coverages are a scam. Good example is rust protection for your new car. Car sales men like to offer special coating for your newly purchased car and since you are spending $20,000 on it, you should definitely consider investing additional $1,000 to have your body covered with special anti rust coating, right? It would normally make sense, unless you look deeper into it. And if you do, you find out that car body already comes with 10 years of anti rust manufacturer’s warranty. In other words, car dealership will try to sell you protection for your car that will do the same job factory applied protection does.

This scam is by no means limited to car dealerships. It is not uncommon to have extended warranties for laptops that cover certain parts of it for certain periods of time. But if you were to take a closer look at what is covered by an extended warranty, you would see such thing as “3 years replacement coverage for RAM chips” but oddly enough, most RAM chips come covered for a minimum of 3 years by the manufacturer.

Scams of that sort are very common. Retail outlets will try to sell you something your purchased item already comes with by default. This is yet another reason that makes purchasing extended warranties NOT worth it!

Who Does The Extended Warranty Work?

If you buy an extended warranty with a retailer, it will be the retailer or their sub-contractors who will perform the warranty work. During the course of my research, I have spoken with a number of people who had purchased extended warranties. Vast majority has never made any use of it. Few could have used it, but after 3 years they were not able to locate the receipts which nulled their eligibility for a warranty claim. Then there were a couple who did need to get something repaired and they each had bad experience. It was not uncommon to be told that something is not covered by an extended warranty, however even if a legitimate claim was made, the repair will be performed by their own people who often lack quality expertise and the job will be poorly done. There is nothing more frustrating than wasting time waiting to get your unit repaired, only to find out that after you got it back eventually, the issue still persists.

Conclusion: Extended Warranty – Worth It or Not?

Two things to consider:

Unless you are buying an item made by a company notorious for lousy, prone to breaking products (most Apple products, for example), then an extended warranty is most likely NOT worth it
If you know yourself as someone who looks after their stuff and doesn’t abuse it, then extended warranty is most likely NOT worth it. If on the other hand you often leave your laptop on the floor covered with an endless pile of garbage so you may end up stepping on it cause you couldn’t see it, and if you have a history of leaving your laptop on an anthill to let all forms of insects get into it, or if you use your laptop as tray for food and drink you consume while you are driving, then perhaps in such cases you should consider extended warranty. In your case it may be worth it.

In conclusion, and as a general rule – extended warranties are NOT worth it. They are extremely overpriced and in most cases end up being nothing more than money straight down the drain. If you do want to have peace of mind no matter the cost, then at least negotiate with the retailer and make sure you do not spend more than 20% of the item’s price on an extended warranty. Even so, if you are willing to admit that the item has a 20% chance of breaking down on you, then perhaps you should do your research better and opt for a brand that’s not notorious for having 20% of their product break down on consumers. If you go with a solid brand, chances that your purchase will serve you well are far greater than chances it will break.

Consider the odds. If you are buying portable electronics, chances of it getting stolen are far greater than chances of it breaking down. If you are going to spend the money, spend it on theft insurance or tracing software so you can increase the chances of recovery.

Products seldom break during the duration of extended warranty. Majority breaks while still under manufacturer’s warranty or die entirely long after your extended warranty has expired.

Given the cost of extended warranties, you are often better off using the money to start the “product repair fund” so you can take care of future issues and if none arise, use the fund towards the purchase of an upgraded version of the product.

If you make an extended warranty claim, you may not see your product for a month. If it’s something you need, such as a laptop for work, you will be screwed. You did not buy a laptop to be a month without it. Loss of productivity you will have incurred far outweighs the peace of mind offered by an extended warranty.

Finally, take a look at all the electronics you have bought throughout your life. How many of those have failed? Imagine you’d have bought an extended warranty for each of them – where would you be now? Would you have saved money or wasted it?

Buying an extended warranty is like going to a casino. The party that takes money from you, does so by making you believe that you are likely to get a lot in return. At the end of the day, whether you spent the money in a casino or for an extended warranty, it’s the receiver of your money who wins, not you. It’s a gamble. That’s why they do it. It’s because they know the odds are heavily against you. On occasion, someone wins, but vast majority lose. Though the reason why stores like Best Buy or Future Shop where I bought my laptop are able to offer near no mark up prices for products is because they rip people off on extended warranties. So I guess I better shut up now because without extended warranties, they would have to bump prices of the products they sell up to stay afloat. The more people buy extended warranties, the more it ensures low, near wholesale prices for products. Yeah, extended warranties are not worth it, but they ensure extremely low prices for gadgets I need. Keep buying, people 😉

Reporting Stolen Laptop

As part of my desperate efforts to salvage as much as I could after nasty laptop theft I quickly proceeded to let all relevant companies know that my laptop was stolen. When reporting a stolen laptop, I first thought of contacting Microsoft with the serial number of the operating system as Microsoft releases regular updates for Windows and if the thief or her accomplices broke into the laptop successfully, there might be a request for update from this particular serial number when it is connected to the internet. I certainly thought Microsoft may be able to trace the attempts to upgrade Widows Vista my laptop had installed (given unique serial number) and report it to the police or better yet, lock the operating system as it could be done with proven pirated copy.

Secondly, I reported stolen laptop to Samsung because they are the makers of it. Again – I wanted them to have my laptop’s serial number flagged as “stolen” in case there is a request for support or any other contact made using my laptop’s serial number. I knew the thief herself would not attempt to contact Samsung, but she was no computer user. She clearly stole it with intentions to sell it. And buyer of stolen laptop may eventually attempt to contact Samsung support which could lead to solid traces and possible recovery of the laptop.

Finally, I have also reported stolen laptop to Future Shop where I purchased the unit. Given that I also paid more than $300 for extended service plan, I thought they’d be willing to at least show some form of support to their loyal customer.

Sadly, each of the reports resulted in response that didn’t help. Microsoft Canada responded in less than 24 hours for which I commend them. Amazing support with fast response times. The response was written in an understandable language and to the point, sadly I was informed that due to privacy commitments, Microsoft cannot trace lost or stolen software when used by another individual, even if used illegally and was advised to report the theft to the police (which I have already done in the meantime). So much for high hopes with Microsoft, but their response was understandable. If they acted otherwise, everybody would complain that they invade their privacy too much and have too much remote control over their property. Ahh well.

Response from Samsung was way more useless. I got an email a few days later stating the following:

Unfortunately, the number “10126029-J502” is not the correct serial number, we are unable to accommodate your request at this point.

Well duh – it is not a valid number, but all other information I have provided when reporting stolen laptop was information exactly matching information I have registered my laptop with. I have also applied for free upgrade to Windows 7 that was provided complimentary by Samsung so they had all my information on file – my name, address, postal code, phone number, when it was purchased, where it was purchased, the model number, my email address, etc. Samsung has all this info on file yet their rep didn’t bother to verify it. At the time of reporting, I only had the receipt issued by the Future Shop which listed the item number in place of the serial number and that caused all the confusion. But it’s not like I had the laptop so I could flip it upside down to provide verified serial number. The rep could have at least gone through hassle of looking up my info to see that all other details provided were bang on, except from the serial number I had no means to get right. Useless Samsung rep and they do it just when you’re stressed the hell out of this world.

This was still nothing compared to the response from Future Shop. These guys simply did nothing. No response, not even as much as a middle finger. Just complete and thorough ignore on my desperate situation. Even if they just did as much as Microsoft – apologize that they are not in the position to help but would advice me to go to the police and file a report with them. This is polite and shows professionalism. Future Shop and professionalism are obviously two terms that don’t belong together. Future Shop only cares about getting your money when selling you the product but once they got the money, their care for you ends. Complete and utter disappointment there. Ignoring my report entirely is the lowest blow of all.

I followed up with Samsung by responding to the email which told me that they won’t do anything because I didn’t provide correct serial number only to find it back in my email inbox two weeks later. It bounced so no one did anything about it. I ended up calling them when I got back to Canada and my case was escalated to higher management who then contacted me via email to apologize for mishandling the situation and assured me that my serial number is flagged in their system and will notify me as well as the international police should they hear about my unit in some way.

What could I have done better when reporting stolen laptop? I was in the foreign country where I got robbed. I needed to file reports as soon as possible because the time was against me. I did my best given that I didn’t have the actual unit on me to verify correct serial number. None of the reports did me any good. Microsoft was the only company that responded in timely manner and did it very professionally. I’m still in further talks with Microsoft to see if there is anything that can be done. Samsung was a disappointment given the urgency and distress accompanying the report. Above all, Future Shop proved to be the worst electronics vendor in the world. Horrible, absolutely horrible mishandling of situation on their part.

Samsung Q320 Laptop in Canada

At this point things really started to look crappy. I only had a week until my departure and still didn’t have a laptop. I had last two options left – either go for a large screen laptop but be stuck with this heavy, oversized piece of equipment I will have to haul around endlessly, impossible to use in confined spaces, such as plane seats, or purchase extremely expensive, but super lightweight and super small laptop from Sony or Panasonic. Sony was not a brand of choice as I had previously had bad experience with their laptop, so Panasonic Toughbook seemed like the only option. And while these ToughBooks are impact resistant, small and lightweight, they are super expensive making it more than unjustifiable (unless you have lots of money to waste). Performance is nowhere near where it should be, however the fact that they are so small and so light (and so durable) would make it a perfect companion on the road.

Price tags for these laptops are sky high, however. Cashing out $2,500 for a laptop is not an easy thing to do. And it was at that time when Samsung introduced its laptop to Canadian computer market. Their laptop model was Q320 and even though Samsung is not known as being a solid computer maker, I have been using 24″ Samsung screen on my desktop and it’s the best screen I’ve ever owned. The Samsung Q320 specs were impressive. More than I could ask for which was making it very attractive. It cost $1,299 Canadian which was more than any previous laptop I have looked at but it had components to well justify the price. As a matter of fact, when it comes to value for money, Samsung Q320 was on top of the game. Given high performance components inside this laptop, the price was amazing.

I was still a little bit reluctant because Samsung is simply not a make you ever think of when you talk laptops so I went to search for Q320 reviews on line. Surprisingly, people did not have enough good things to say about these machines. It almost seemed unreal that there would be a laptop with such amazing set up for such an attractive price. I went to take a look at it in Future Shop and sure enough, the feel of Q320, the performance, the screen output – this was one amazing machine. Unfortunately in Canada, Samsung Q320 laptops were only available in white. That made the unit look like a MacBook which is not very visually flattering, but I wasn’t buying the laptop for its looks. I needed performance, reliability and small size. They way a laptop looks was vastly irrelevant so I got past the Mac-like looks and gave myself just one day to think it over (I’m not an impulsive buyer, no matter what).

My original intention was to only spend up to $1,000 for a laptop and this Samsung Q320 was way over my budget. Given the components this laptop was equipped with, however, the price tag made it more than worth it so value for money was there more than with any other laptop. I went back to the Future Shop the following day only to find out with horror that the only model they had there yesterday sold during the day today. Since this was a brand new model, no other outlet in Canada carried it. I went to Future Shop in Northgate, Edmonton and was told that they didn’t even have any of those yet. As a matter of fact, first two sales reps I was talking to didn’t even know this model existed. I had to refer them to their website to make them believe that I’m not making it up and Future Shop does in fact carry this model.

I spent whole day trying to buy the best small laptop that was currently available in Canada only to end up with nothing at the end of the day. At least formerly worthless sales reps from Northgate did me a favor and called other Future Shop locations in Edmonton to see if anyone still has one of the units in stock. Luckily, the west end location did have it so I assured them I would be there tomorrow to pick it up and asked them to secure it for me. The following day I jumped on my mountain bike and rode all the way to west Edmonton where brand new Samsung Q320 was waiting for me. Without second guessing I bought this laptop and headed home to enjoy its performance.

Photo: Samsung Q320 Laptop - The Best Laptop buy in Canada in 2009/2010

This machine worked like clockwork. The best laptop I have ever owned. It had the speakers on the bottom giving out poor sound when you had the laptop on your lap, covering the output, but other than that I could not think of any other downside. The best laptop ever. Never let me down in any way. I was really happy with the choice I made and as I kept using it, I even grew to accept the not-so-flattering, Macintosh-like white exterior. I had the most important piece of electronic device needed for my travels. I was ready to board the plane. As far as laptops in Canada are concerned, Samsung Q320 is hands down the best model to buy.