Facts About Best Buy Performance Service Plans

Max Power
If you've ever shopped for electronics at Best Buy (and the odds are good that you have, since it is the largest electronics retailer in North America) you've heard about their Performance Service Plans (PSP). The salesmen will tell you about them more than the product you're looking at. The reason why is obvious. PSPs are over 80% profit and since this money sits in an interest-bearing account, will make the company even more money in the long term. For people that would call them 100% profit, please consider there is a cost to maintain the program (an outside company actual controls the performance service plans) and sometimes people actually do use them for repairs.

You see, Best Buy is banking on three important facts when they sell a performance service plan. First, they hope you won't actually use it. Second, many people actually forget they've got a performance service plan. Since they run for many years, by the time a product is more likely to break, people are more willing to buy a new item with all the bell and whistles rather than fix their obsolete item. And third, it is still a lot cheaper to pay their service technicians to fix the item than what you paid for the PSP. But to clarify, it is cheaper for Best Buy to pay the technicians, not you. If you pay their service centers for repairs, you're going to be charged at the same rate they charge the manufacturers for warranty repairs, which is very high.

With all of that out of the way, the question becomes, are the performance service plans worth it? That depends on the item. The PSPs do cover replacement batteries on cameras, camcorders, notebooks and cell phones. They also cover cleanings on cameras, printers, DVD players, and VCRs, which can cost $50-$75. For projection televisions, they also cover alignments, which can cost $150. They also cover items the manufacturer doesn't, such as surge damage from lightning. In addition, the PSP offers a "No Lemon Policy" which will replace the item after a specified number of repairs. But then again, you're paying Best Buy on the assumption that your new piece of electronics is going to break in the next 3-4 years.

So, supposing you decided to buy the performance service plan, what information do you need to keep in mind? The salesman promised the moon and stars when trying to sell it to you, but what is reality like when your item breaks down? The most important thing to remember is to actually read the PSP brochure. This is the letter of what Best Buy will adhere to when it comes time for repair, not some pie in the sky promises made by a salesman who may not even be with the company the next time you go to the store. The most important thing to remember is that this is a SERVICE plan, not a replacement plan. Yes, Best Buy will replace the item under certain conditions, but you're not going to just walk into the store and get a new item if yours breaks. Also, unless you paid extra for the "Accidental Damage" plan, your PSP is only going to cover normal wear and tear. So, if you drop your camera on vacation, don't expect it to get fixed. Cracks, broken screens, dropped items, water damage, none of this is covered by the performance service plan.

Now you're probably wondering what you can expect when it comes time for the repair. If you're talking about an appliance, certain computers, or televisions larger than 27 inches, you call the 800 number on the back of the PSP brochure and wait for the in-home technician to arrive. Otherwise, you're going to the store. Once there, your item will be shipped to a service center, a process than can take several days, where it will be repaired, then shipped back. The whole process takes 2-4 weeks on average, depending on the availability of parts.

Finally, there are a few things to remember when your item is sent for repair. Make sure they've got your correct phone number so they can call when it comes back. Make sure not to send in anything with your item other than what is necessary for the repair. If you do send any accessories with your item, make sure they are listed on your service tag. If they're not, there's no way to be certain you'll get them back. Also, be sure the physical description is accurate on your service tag. That way, if your item comes back scratched, it is documented that it wasn't that way before sending it in.

With all this in mind, you should now be prepared to make an informed purchasing decision.

Published by Max Power

Grew up in Missouri, moved to Florida.  View profile

10 Comments

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  • Scott11/12/2008

    Hi,
    Just wanted add my story considering I'm so pissed at Best Buy right now:

    I just got off the phone with the PSP people after arguing with 2 people (the initial support and his manager) for about 45 minutes.

    See, it's now been about 25 days since my TV broke, 19 days since the initial technician came and saw that it needed a new power supply, and 13 days since the new power supply arrived to the service center.

    Today was the day I was supposed to have my TV fixed, 13 days after the part arrived. I had already argued with the PSP people and they insisted that the 12th (today) was the earliest appointment they had available. Why? *Because there's only 3 technicians for all of the DC Metro area*. That's right, 3!

    And why is my TV still not fixed? Because the part got put in technician A's truck while technician B was sent to my house. So awesome. This is all according to the PSP service *manager*. Now for some reason, I have to wait until technician A's next appoint

  • Cathy B9/25/2008

    I just found out the catch in the "No Lemon Policy". If you call them out to fix something, you have to wait 90 days to call them again, or they consider it a service recall, and will not replace your item. I just spent $175.00 for an electrician to come out and tell me I have no electrical problems, and they are sending the same idiot out for the THIRD time to not fix my dryer tomorrow. And I have not got a hope in hell of getting the dryer replaced if he cannot fix it.

    I am disabled and have spent endless time and money trying to get my laundry done for over a month, and I still have no hope of getting a satisfactory resolution.

  • Pissed off at best buy9/6/2008

    Yeah their service plans are a joke. I hope other people have had better service than I have. So far I've had replacement parts shipped to incorrect addresses, service tech's break my tv, and hour long discussions on the phone with good for nothing customer service reps since all they can do is say "I promise you we'll resolve this, our scheduling team will contact you."

    What a joke

  • Good Idea7/13/2008

    Some PSP's are really worthwhile, the Accidental Damage PSP they offer for electronics that are frequently moved for example, are a great idea. Laptops you can accidentally spill a half-gallon of water on it for all they care and they will still repair the thing no questions asked, poor service from an individual store doesn't mean you should discredit the whole system.

  • Big Daddy Sweet Luv4/17/2008

    Yeah about Best Buys PSP. It sucks. I am on day 37 of my HDTV repair. They have told me that my part is on back order untill May 20. This goes beyond the 45 day garauntee to replace my TV. So, do they replace it? No, They tell me I have to wait the full 45 days first even when they already know it won't get here in time. I will never shop Best Buy again

  • Your Critic3/29/2008

    I love these biased reviews from you guys...

    "sometimes people actually do use them for repairs" ?? lol? sometimes? can you cite your sources on that?

    "The most important thing to remember is that this is a SERVICE plan" uhh its called a PERFORMANCE service plan...that means the performance of your product is guaranteed for the duration of the plan. That means you can bring your product in (laptop, desktop, printer, dvd player, etc) for regular cleaning and maintenance. Did you know that? probably not.

    "The whole process takes 2-4 weeks on average, depending on the availability of parts." First of all, you yourself say that it takes this long "depending on the availability of parts", so i don't understand...the parts have to come from the manufacturer, so why are you attacking the PSP on that? Second, are you aware that the turn around time on most manufacturer's warranties average about 60-90 days. Are you also aware that you have to ship it back to the manufacturer?

    An

  • zomg.1/27/2008

    "sometimes people actually do use them for repairs."

    As far as I know, the repairing center is busy as hell. They receive high volume of repair order each day. And i guess that is why some repair take long.

  • Don1/26/2008

    Bought PSP for 56 inch JVC HD TV. I thought it would be worthwhile to cover the cost of lamps that run over $200 a pop. Should have read the details that explain that only one lamp replacement is included in the plan. The plan is $400 the lamp is $200, do the math. What's worse when we called for service an appointment was scheduled and my wife took a day off from work. The technician was suppose to call between 7 AM and 9 AM the day of the appointment. Guess what? No call was received by noon so my wife called only to be told that no one would be coming. Talk about lousy service. What's more, we were told that the initial visit would only consist of an evaluation of the problem. The TV clearly says on the screen that the lamp needs replacement. But we were told the lamp would not be installed on the initial visit. It would be ordered after the evaluation and replaced at a later date. What a joke. I'll never buy a PSP from Best Buy again. They have great prices and great sales service.

  • I like the plans1/10/2008

    I love the accidental damage factor on the laptops and cameras. I've used it on a Sony Vaio of mine, and they weren't lieing when they said accidental.

    Cracked the screen. They replaced it. Good deal.

  • Emily Flaharty8/11/2007

    This is good advice; I'm never sure whether to buy these extended plans or not.

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