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26 Dec 2013, 13:40
"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.
The paragraph states that company can increase their profit margins by limiting the number of years on warranty. The author states that the currently, the company is spending too much money on customer service after the sales. This statement has a major flaw that it does not present enough data and related information. The author fails to provide specific reasons and data to justify why providing customer service after the sales is costing them more money and by reducing this will help the profit margin.
The author further presents that the company pays premium rate to customer service employees because they posses expert skills in products that they no longer sells. It is difficult to understand the relationship between how company can increase the profit margin by paying premium rate to the customer service employees. Does the author trying to explain that it is important to reduce the premium rate to increase the profit. These two things do not correlate in any logical sense or does not present how one connects to another.
The statement presents unknown variables, which further confuses the readers. As you can see the argument presented has problems expressing the logics between increasing the profit by decreasing the number of years in warranty. The argument does not see to justify the recommendation and does seems clearly present how the cost of warranty relates to the life cycle of current product. It did not present clear information on how reducing the warranty time and directly impact the product in its life cycle.
The support statement, which talks about paying high premium to customer service employs does not explain any further on how reducing the warranty time will increase the profit margin. The argument fails to build the connection or reasons behind paying premium cost to lowering the warranty. The argument has information missing in a way it almost seems to confusing to understand the presented recommendation. The author failed to strengthen his claim with supporting example and information of relevant factors.
The argument could have strengthen by presenting current and future projected data along some specific market study and research regarding the relationship between reducing the time for warranty and savings for the company.