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Originally Posted by Takkyu There are multiple news stories from various tv stations all over north america about the shady practices of big box retailer's tech centers. Even dedicated IT solution providers that will give bogus diagnoses just to make a sale. |
The fact of the matter though is that they make more money in repairs and diags than they do selling a computer. If you think about it, the tech guys are already getting paid to stand there, so the money going towards repairs and such (or installing that modem for $180) is pure profit. Big box stores usually have no profit margins on selling just computers, or a very little profit margin at least. This is why they offer all these service plans as well. Another cash grab for the company (if the computer works as it should), but they lose money if they have to send the computer out after the 1 year manufacturer warranty.
Yes, the prices are insane for repair work at these places, but there is a market to have these prices, because the majority of people don't have a clue about computers.
EDIT: I guess I should add my point to this. I'm utterly confused as to why they wanted that person to get a new computer. They could have made way more money. But to each their own. I'm all for giving cheap prices for tech work and computers, but coming from the company's point of view, they lost a lot of money.