Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 28 May 2017, 13:58

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# GMAT in 2 days. Please review my AWA.

Author Message
Intern
Joined: 20 Jul 2012
Posts: 9
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

23 Aug 2012, 11:09
I have my GMAT on Saturday 8/24 and I am trying to make sure that I am in a decent spot on the AWA. Can someone please review my essay? I truly appreciate it.

"We are spending too much on free customer service after a sale has been made; we need to limit our warranty to two years in order to improve our profit margins. The current lifetime warranty can lead to costs decades into a product's life cycle. Also, we pay our customer service employees a premium because they must possess expert skills across the entirety of our very diverse product line, including products we no longer sell."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.

In this argument, the company concludes that they are spending too much on customer service after the sale has been made, which is cutting into their profit margins. Therefore, they believe that if they limit the warranty on their products to two years that they will be able to cut costs associated with these claims. Although this argument could be true, it has a couple fundamental flaws based on some unaddressed assumptions.

Firstly, the company is assuming that their lifetime warranty is not a primary selling point. It is possible that many consumers choose their brand because of the lifetime warranty and customer service that accompanies their products. For example, several hand tool brands such as Craftsman and Kobalt, have advertised their lifetime warranties on tools for years. They have differentiated themselves according to their warranties. Therefore, if either one of the these companies limited their warranties customers could become frustrated, which could result in the loss of a significant number of loyal customers. The same could be true for the company mentioned in this argument.

Secondly, the company is assuming that a significant portion of their costs associated with warranty claims are coming after two years from the date of sale. It is possible that the majority of claims occur in the two year window following the date of sale. Therefore, in actuality the company will not reduce their costs by doing away with a lifetime warranty in favor of a two year warranty. However, they could still frustrate customers by changing their warranty, which could have a detrimental effect on sales and profits.

Therefore, the company should address these core assumptions before changing their warranty. They should determine if their warranty is a primary selling point. If it is not, then it is possible that customers will not notice this change. In addition, they should determine if the majority of costs associated with warranty claims occur within two years or after two years from the date of sale. After these core assumptions are invested the company will be able to make a reasonable decision, but as the argument is presently presented it could have a significant detrimental effect on sales and profit.

In conclusion, the argument that the company could reduce costs and improve profit margins by limiting their lifetime warranty to two years is fundamentally flawed. The company should determine if the warranty is a primary selling point and when the costs associated with warranty claims occur before they can make an accurate decision regarding their warranty policy.
Kaplan GMAT Instructor
Joined: 25 Aug 2009
Posts: 644
Location: Cambridge, MA
Followers: 85

Kudos [?]: 287 [0], given: 2

### Show Tags

23 Aug 2012, 11:49
gomocs wrote:
I have my GMAT on Saturday 8/24 and I am trying to make sure that I am in a decent spot on the AWA. Can someone please review my essay? I truly appreciate it.

"We are spending too much on free customer service after a sale has been made; we need to limit our warranty to two years in order to improve our profit margins. The current lifetime warranty can lead to costs decades into a product's life cycle. Also, we pay our customer service employees a premium because they must possess expert skills across the entirety of our very diverse product line, including products we no longer sell."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.

In this argument, the company concludes that they are spending too much on customer service after the sale has been made, which is cutting into their profit margins. Therefore, they believe that if they limit the warranty on their products to two years that they will be able to cut costs associated with these claims. Although this argument could be true, it has a couple fundamental flaws based on some unaddressed assumptions.

Firstly, the company is assuming that their lifetime warranty is not a primary selling point. It is possible that many consumers choose their brand because of the lifetime warranty and customer service that accompanies their products. For example, several hand tool brands such as Craftsman and Kobalt, have advertised their lifetime warranties on tools for years. They have differentiated themselves according to their warranties. Therefore, if either one of the these companies limited their warranties customers could become frustrated, which could result in the loss of a significant number of loyal customers. The same could be true for the company mentioned in this argument.

Secondly, the company is assuming that a significant portion of their costs associated with warranty claims are coming after two years from the date of sale. It is possible that the majority of claims occur in the two year window following the date of sale. Therefore, in actuality the company will not reduce their costs by doing away with a lifetime warranty in favor of a two year warranty. However, they could still frustrate customers by changing their warranty, which could have a detrimental effect on sales and profits.

Therefore, the company should address these core assumptions before changing their warranty. They should determine if their warranty is a primary selling point. If it is not, then it is possible that customers will not notice this change. In addition, they should determine if the majority of costs associated with warranty claims occur within two years or after two years from the date of sale. After these core assumptions are invested the company will be able to make a reasonable decision, but as the argument is presently presented it could have a significant detrimental effect on sales and profit.

In conclusion, the argument that the company could reduce costs and improve profit margins by limiting their lifetime warranty to two years is fundamentally flawed. The company should determine if the warranty is a primary selling point and when the costs associated with warranty claims occur before they can make an accurate decision regarding their warranty policy.

You are well on track to a great AWA score--I'd give this a 6, without reservation. Well done! The only errors are minor punctuation issues (you need more commas!). Otherwise, you have excellent style, perfect reasoning, sterling examples, and wonderful structure. Congrats, and good luck on Saturday!
_________________

Eli Meyer
Kaplan Teacher
http://www.kaptest.com/GMAT

Prepare with Kaplan and save \$150 on a course!

Kaplan Reviews

Re: GMAT in 2 days. Please review my AWA.   [#permalink] 23 Aug 2012, 11:49
Similar topics Replies Last post
Similar
Topics:
One AWA a day! Day 5/11 - Please review my essay! 0 11 May 2017, 00:40
Request experts to rate my awa please , gmat in 2 days 1 16 Sep 2013, 16:35
Please Review my AWA.GMAT in 7 days.Thanx for the time. 3 28 Jul 2013, 16:49
GMAT in 3 days, Please review my AWA 4 12 Jul 2013, 04:19
GMAT in 4 days. Please review my AWA 2 04 Sep 2012, 09:37
Display posts from previous: Sort by