At the last place I did car audio which, ironically, was the place that used to come to Milwaukee for their big sales (they drastically changed their tactics), the sales people were 'encouraged' to sell 3 or 5 year extended warranties with as many items as possible. I don't think they're needed for many items, but for something that will be in a somewhat hostile environment (like a car), I think it's a good idea, especially since ours covered removal and reinstallation IF it was originally installed by one of our shops. One round trip almost paid for the 5 year, so that was a good deal. If it has to come out again, the customer has won.
The problem at my location was that the two main pinhead sales droids couldn't bring themselves to sell these and one sold fewer installations than anyone else in the company. I don't know why they kept him, but they did. The reason they didn't sell these was always the same- "No money! They got no money!". I begged to differ. When my shop installed equipment he sold without install, I made a copy of the invoice and discussed it with him and he stuck with his story every time, even though the installation labor, parts and accessories sometimes totaled over $500. No money, eh?
The problem with them not selling installation is that when something was installed by someone who didn't have a clue and found to be inoperable and it was returned within two weeks (almost all amplifiers worked perfectly- they just needed 12VDC on the remote terminal), they were sent to the service department for evaluation. If they had no problem, the sales department was charged $19 and it was sent back to the original store to be put in the 'open box' display, at a discounted price. So, the company lost the installation price, the $19 and the difference between the sale price and the discounted price, usually 20%. Those were great deals for someone, but not the company. The sales idiots couldn't even be swayed by the fact that they lost the commission on outright returns and never earned the commission on installation labor, extended warranty and parts/accessories profit. They basically refused to sell these- one refused to sell the extended warranty on religious grounds- Muslims believe that insurance is gambling and the other is just an idiot. They lost more commission on what they didn't sell than they made on the equipment.
Someone crunched the numbers and found that if the equipment sold by the company was installed by one of our shops, it had a .1% rate of coming back as defective and if it was installed by someone else, the return rate was 42%.
Those two should have been fired, but the one couldn't, because HR would never have been able to defend it, even if they said he didn't do his job at the expected performance level.