Annual Maintenance cost (AMC) is one of the way for service providers to earn a lot of money. There will be lot of terms and conditions to avail the service under AMC and more importantly spare parts will not be covered. If there is no service request during the AMC period, obviously they are in profit. Even if there is lot of service request....
Most of the service requires replacement of spare parts and for spare parts we are likely to rely on the same service provider. Though a separate receipt will be given for the spare part expenses, the profit margin on this is unknown to us. In some cases, the spare parts will be replaced without requirement and the replaced part may not be really genuine / new.
Recently, I heard about AMC which will include spare parts as well. This is for a popular washing machine brand. When we encountered some issues with our machine, we called the service provider. The person after examining reported that xxx parts need to be changed which will cost rs 4000 and service cost will be rs 800. Total 4800. Then, he suggested us to take AMC now for rs 2500 and machine can be serviced free of cost after one month since the spare parts are also included in this AMC.
For us, 2500 is definitely cheaper than 4800. But we are not sure if 4800 is really a correct number. Probably the repair work that is going to cost us the least is now converted into AMC :(
During the AMC period, if there is really a big work with spare parts costing more its going to be a rare case and also they will have escape routes with terms and conditions for the AMC.
Our lack of knowledge about technical details of the product is their advantage. Even if we go to another service provider, we will face similar issues or more :(
Note : Numbers are changed for easy understanding.
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