Monday, January 5, 2015

Innovative business models

Mark Evanier has an interesting observation about an extended warranty for an external hard disk he bought at Amazon.
A 2-Year Data Recovery Plan for $9.95. This proposition gives me more information. It says, "If your drive stops working, the Rescue data recovery plan will recover the data from the failed drive and return it to you on a new piece of external storage." That sounds interesting until you get to this line: "If your data isn't recovered, you get your money back."

Okay, so follow me on this. Let's imagine that I have no technical capability to recover data from a damaged drive. None whatsoever.

I offer this deal. When you buy a new hard disk, you send me ten bucks. If the drive never fails you, I keep the ten bucks.

If the drive does fail, you send it to me and I send it back to you with your ten bucks and say, "Sorry, I couldn't recover your data." I don't even have to send you that new piece of external storage I send you if I do recover your data, which I don't even try to do.

What is my potential loss here? Well, I haven't investigated far enough to know but I suspect when you send me your drive for possible data rescue, you have to pay a postage and handling fee for its return. If you do, I'm out nothing. I might even make a few more bucks off that postage and handling fee. If you don't, then I'm out the cost of sending you your refund and returning your drive.

1 comment:

  1. This might rise to the level of an interesting deal if you got the money for both the warranty and the drive back. I will also note that a warranty requires that the company that offers it still be in business. If the business does not succeed, then your warranty is also dead.