A few days ago, I bought a small Toshiba netbook to cater to my mobile computing needs since in the span of just two weeks, both my laptops, a MacBook and a Sony VAIO, decided to self-terminate. I brought it home and excitedly showed Steve the features of this shiny new metal object, and after a series of questions, he finally asks, “How much?”
I tell him the amount, which is markedly above average for a netbook these days, to which he exclaimed, “What?! Why?” And then I sheepishly admit that the netbook was really 450 bucks and that I actually bought a 2-year protection plan for an additional $150.
“Why would you do that? It’s such a waste of money! No one I know ever buys these things, they are scams!”
I flashed a self-effacing grin, saying that I happen to break things very often and I just like knowing that it’s covered, because of the uncertainties of the future, whether it’s a hardware failure or just me knocking over a glass of milk (which I actually did before by the way, and Steve couldn’t wait to come over and say, “oh sweetie, don’t cry over spilt milk! He was so happy after that because he said he always wanted to say that in a real-life non-figurative situation. I’m glad I give him these opportunities).
Anyway, I did it again a few days after when I upgraded my old clunker to Apple’s iPhone – I purchased the Apple Care Protection Plan because if anything happened to the phone (with the exception of theft/loss), I’d have to cough up the retail price of US$600. And before you can say, “what could possibly happen to your phone,” I am happy to tell you a story that just took place a few days ago. Steve had just woken up, sleepy and groggy as he was about to partake in the morning leak ritual when his iPhone slipped out of his hand and actually dropped into the toilet bowl. Miraculously, it bounced off the dry angeled side without touching the water, and landed snugly into his hands. I know the man is a black belt in taekwondo but the reflexes required to successfully pull this off are quite ridiculous. Suffice to say that I know that my reflexes are not nearly as advanced and that miracles in my life are far less commonplace than in his.
This all got me thinking about my inclination towards the concept of the “extended warranty program”, which is in stark contrast to many of my American friends who see it as an unecessary expense and a scam by dealers to increase their bottom lines by milking the consumer for every last dollar.
And then it hit me - you can take the girl out of Singapore, but you can’t take Singapore out of the girl. Singaporeans are a highly risk-averse lot – in fact it is so ingrained into the national mindset that it is practically etched into my own psyche, and till today I cannot seem to shake it off. It’s not uncommon to hear the refrain, “aii yaah, just play safe” among the locals. In fact, “play safe” best sums up the governing principle of life in Singapore where the government created and maintains an environment that focuses on stability and social cohesion. The PAP way of thinking is to make sure that every base is covered, no possible scenario is left unanalyzed, no potential consequence, unexamined – it’s really a very logical approach to life that minimizes the impact of unforeseen circumstances that may leave you caught out in the cold.
It is no coincidence that Singapore boasts the highest saving rate in the world, well over 40% of GDP, which is a direct result of the government-mandated savings program. It acts as a social safety net that prepares each working adult for retirement, so that everybody regardless of income would have laid some sort of a nest egg; this all negates the need for a government-based welfare system as people are “forced” into personal responsibility. It is as Singaporean as it is a Confucian philosophy to leave as little as you can to chance and save now to prepare for the future, and although the act of spending more to protect a purchase seems counter-productive, it’s the risk aversion bit that is both at the core of the aptitude for saving and the compunction for extended warranties (although unfortunately, I missed out on the tendency to save part).
Also, the culture of taking risks, either in the entrepreneurial sense or in taking the road less traveled, does not really exist. It’s a truly meritocratic society where your future can be accurately predicted based on your cumulative performance in the education system. The “best option,” which is really the option where you risk the least and the option which leaves you with the most options, is to do extremely well and make sure you study science and math because from there, you can do anything – you can become a doctor, lawyer or massage therapist, if you so desire. You can’t be a student of the humanities in high school and hope to become a cardiac surgeon one day because it’s too late, you didn’t “play safe,” you didn’t work hard, so you don’t get to study the natural sciences and hence, no chance of ever conducting a triple bypass. Singaporeans rarely ever exit the paper chase or ditch the 9-5 corporate job to seek their true passions – it is drilled into their heads that such behavior is too uncertain and it might jeapordize everything. Where one’s fate is largely deemed to be the aggregate outcome of individual decisions and personal effort, why risk it? Why risk anything when you have so much to lose? If there’s an option that allows you to be covered and protected from the uncertainties of life, in exchange for a relatively small amount of money, why not go for it? You may lose the $150 (cost of the warranty) or you may have to buy a brand new product. In my Singaporean mind, it just always seems to be a good deal (especially for Apple products).
If there’s an insurance for anything that can possibly break down, I’d definitely get it. I’m the sucker who continually keeps these programs alive – my cell phone, laptop, iPod, camera, video camera, LCD TV, right down to my electric toothbrush are all safeguarded by some sort of a protection plan.
This is how a typical exchange goes between me and someone who’s trying to sell me something
Sales person: “Would you like to purchase an extended warranty that would cover your purchase for 2 additional years on top of manufactuer’s warranty, no questions asked?”
Me: “Hmmm…”
Sales person: “You never know if it may break or the hard drive crashes, you know, technology nowadays…”
My brain, thinking: “Oh ya. Hmm, better play safe.”
Me: “OK!”
(Ever realize that the Singaporean catch phrase “play safe” is a reduction of the english phrase, “play it safe?” This demonstrates a remarkable character of Singlish that I call linguistic efficiency, so much so that a two-letter word, “it,” had to be dropped in favor of overall economy of speech. Three words now become two so that Singaporeans can convey the essence of its meaning without compromising on clarity. Astounding. Truly an artform.)
Steve, like my other American friends soley rely on the manufacture’s warranties, which typically lasts for a year from the date of purchase. But problems don’t start surfacing till much later! Firstly, it’s somewhat aggravating that people just don’t make things that last anymore, is it too much to ask for your new iPod to last for at least 2 years? Secondly, as I discovered earlier, I am congenitally predisposed to disrupt electric circuitry, either by my knack for inadvertantly dowsing water on keyboards or simply by staring at computers.
I am actually surprised that Steve does not see the absolute necessity for these warranties, especially given that I am now a permanent fixture in his life. Two years ago we went to Universal Studios and he passed me his old Canon Powershot digital camera for “safekeeping” in my bag. Unbeknownst to him (and me actually), I had taken a sip from a bottle of spring water and neglected to cap it before returning it to the bag. When a kodak moment appeared, I reached in and was shocked to find the camera submerged in a swimming pool (Oh my poor Longchamp bag – that was my first reaction). Big Oops. Moral of the story: never trust a water baby with any of your electronics! But you see, if he had a working protection plan, he would have been safeguarded against, um, me, and we wouldn’t have had to go shopping for a new camera at all (although that was a good idea because he was still using one with 5 MegaPixels and the pictures on this blog would look worse).
Of course a major poblem is that warranties don’t cover a period of time that’s nearly as long as it needs to. Computers seem to break down in 3-4 years, well outside of the typical 2 year protection plan offered by any of the national electronics retailers. In fact, when I told my mom about the demise of my laptop, she texted me and advised that I buy a 5 year warranty the next time I purchased a new one. Five year warranty – did you hear that? That’s unprecedented here in the United States where the most common coverage period is 2 years (which is nice because everything goes kaput after 2 years; it’s a conspiracy). That told me something – warranty programs must be extremely popular in Singapore that stores are willing to offer 5-year warranties.
On a bright note, I did find one store that offered a 4-year protection plan that INCLUDES accidental damage, albeit for 25% of the cost of the laptop itself. I wondered to myself whether, like dry shampoo, that this was really too good to be true, so I made sure to ask the sales guy explicitly whether or not I’d be covered in the very likely event that I spill coffee all over the keyboard. It should’ve been obvious but to my astonishment, he said yes!
So I finally figured out that I’m getting a Sony VAIO to replace my um, broken down Sony VAIO. But this time with an expensive 4-year protection plan. And it is not a rip-off when you find yourself replacing electronics at an average rate of two every year; it’s the price to pay for peace of mind for the next 4 years.