Lifetime Warranties - How are they sustainable?

[BERRRG]

Basically, I'm wondering if anyone can explain how manufacturers of medium-to-high-end rods can afford lifetime warranties on them.

Today I was glad to hear that my G Loomis fly rod that was broken accidentally (entirely my fault) has been replaced with a brand new rod, ready at my shop for pickup. This is the second replacement rod I have received for the same single rod I bought only two years ago (yeah I should really be more careful lol). Not only this, but the first replacement was a free upgrade due to the original model being discontinued.

I realize the rods I'm sending back are as much as 3/4 functional, and are maybe resold, but the policy has cost them three rods. How do they keep this up? Huge markup? Eventual limit on replacements?

 

[[email protected]]

lifetime warranties aren't for your lifetime, its for the expected lifetime of the product. also, the markup on these rods is huge, around %50, so that $800 rod cost the shop somewhere around $400 or $500, you can imagine the production cost to be somewhere around the $200 mark

 

[tossing iron]

Limited lifetime warranty
Manufacturer deffects

 

[hamiltonangler94]

Also we have to take into account the percentage of rods sold that come back for warranty. I bet it's less than 10% due to the rod either not breaking or people simply not sending the rod in for warranty due to ignorance or laziness. Also the addition of a lifetime warranty is a huge selling point, so the extra sales more then make up for the replacement costs from warranty.

 

[BERRRG]

The most recent replacement was not for manufacturer defect. The rod was stepped on and they were aware it was an accident.

I knew it wasn't for my own lifetime. My point is just that it's clearly a lengthy warranty (for example compared to just a 1yr manufacturers warranty) for the price of one rod it's cost them three. Whatever the lifetime of the rod is I could potentially have it replaced yet again. I know it's situational but using those numbers as an example the manufacturer has already lost money on my purchase. Let alone all other costs. Have to believe the replacement rates are low and/or they can refurbish or sell returns.

 

[BERRRG]

Realistically they're more aware of the financial implications of their policy than anyone and I'm sure my rod purchase price included some form of built in "insurance" fee, if you will, on the chances of having to replace it.

 

[[email protected]]

lifetime warranties are often an indicator of quality. if a manufacturer is willing to put a lifetime warranty on it, they believe it to be a high quality product. where as a 1 or 2 year warranty would indicate a lower quality product. now this wouldnt be the case for all products, but just fishing rods.

 

[fishermandan420]

Manufacturing costs on that rod are probably 50 bucks. Cheap to keep you as a loyal customer.

 

[NADO]

Exactly, the high end rods really don't cost that much more to produce. The high price tag is justified by warranty and image, plus most of them have a small fee for warranties that covers most of the cost.

 

[rich_ace_G]

Lifetime Warranty is one of the most effective marketing strategy. That really lures people in. A lot of manufacturers do this based on a lot of factors.
Durability depending on what kind of abuse.
Overhead cost.
Unless it's high end stuff, a lot of people don't even want to go to so much hustle to get something back.
You have to really read what's covered on those warranties as well.