lack of repair support for out of warranty products

It’s seems like it would be a necessary precaution to prevent fraud.  What would stop the consumer from claiming that a perfectly functioning device is broken in order to get a 30% discount on new product?  Sonos probably does a 5 minute test to verify that the device is indeed no longer functioning, then breaks it down to recycle parts.

OPs post is filled with a lot of assumptions that I just can’t accept as fact.  I do not think that Sonos is selling 3 year old used devices as refurbished.  As pointed out, these are likely devices that would returned via the return policy and this saw limited use if any at all. No repair required at all.  I don’t think the amount of effort to repair 3 year old heavily used devices and risk customer disappointed doesn’t seem worth the effort.

Related, I don’t see this policy as very profitable for Sonos. I’m not sure what Sonos margins are, but I would bet 30% discounts take up a very big chunk of that profit.  Factor in the cost manage the program, shipping damaged units back, analyze and repair, and I doubt there is much there at all.  The main goal of the program is to surely retain customers so that they are more likely to buy a different new product later on.

Another assumption is that the issue is an easy fix.  Without cracking it open, breaking adhesive seals that would need to be replaced, you don’t really know what the issue and cost is. 

And your cost analysis makes no sense. Your initial cost for the sub is irrelevant since it’s a sunk cost no matter what.  Sonos is offering you a new sub for $560.  The repair option you’re asking for, if it were offered, would likely be a few hundred dollars for a 3 year old repaired sub.    Yes, you’re paying more for the new sub, but you are getting more too.  You could also factor in the difference in resale factor for a  2023 sub vs a 2020 sub that’s gone through repairs.

Regardless of all that, it does look like Sonos is trying to move towards a repair model that makes sense, like much of the industry is doing due to social pressures.  The newer speakers are not using adhesives, and can be taken apart and back together to replace parts much easier.  Not sure that’s going to result in cheap repairs, and it will take years to really get there, but it is moving that direction.

I think you’re conflating the upgrade policy, which applies to certain devices regardless of their current condition, with the defective product policy, which would only apply for defective products...obviously.

Yes, you’re no doubt correct, I just assumed (wrongly, I guess) that the same/similar policy would apply in either case.

Yes that’s what doesn’t sit right with me. It’s clear a 3 year old sub kept in absolutely safe location mover been moved around (under sofa on itsdoe) went dead suddenly can be assumed for the cause of surge. Sonos knows that. The exterior is pristine and I’m 100% sure the most valued components aren’t effected. So the fact they require me to forfeit before releasing a coupon that is less valued than Halloween candy they’ve been passing out is not right.  On top of all, all I wanted was a chance to see if it’s repairable, they said not an option but clearly it’s not true otherwise where do those refurbished units come from that they sell directly on their website?  

So according to your theory Sonos should offer to take back every reported and unreported broken units for the green reason?? If you’re so concerned about the efforts vs profit margins, do you not think paying shipping costs to take them back and paying employees and trash services to process them cost them additional costs that brings absolutely no value to them?  
since you admit you don’t know their build cost vs profit margin, probably you don’t have exposure to that business sector. I’ll explain, Sonos is a manufacturer that also acts like a retailer.  Manufacturers typically sell to retailers for ½ of cost or less than the actual retail price that we see. Bestbuy being a retail giant, Sonos must be selling to them less than ½ cost of retail price, and still make profit.  So when they also sell on their website for that same retail price, that margin is even higher, because the retail price is fixed as a contractual obligation to prevent killing their own distributors- bestbuy. Hence only Sonos has the power to give out coupons due to their high margin advantage over distributors as the position of being the source - manufacturer.  So 30 or 40 or whatever coupon they offer is nothing but a tactic to increase their sales.  No business is going to put their money into your pocket by selling you below the cost they paid to make the product no matter what the reason is. Why do you think they gave away crap loads of 40% coupons to s1 users recently free? Because they want to give away money?  Just think 

I did not say that the only reason Sonos asked you return the device is so they could recycle it.  I said that they would determine that the speaker actually is faulty to prevent fraud. Then would recycle, rather than repair/resell or trash them.   Regardless of whatever ‘green reason’ Sonos may or may not have, they recycle for PR reasons.

You’ve made a lot of poor assumptions in your arguments, all conveniently favoring your narrative. I don’t see a reason that you would start being objective now.

You are correct that Sonos margins are surely higher when selling direct, even after factoring in shipping and other costs, but I don’t think we can assume any of these margins.  The margin between direct sales and sales through distributors isn’t relevant anyway.

And I said that the discounts take a big chunk of the profit. That does not mean I think they take a lose.  You’re throwing up a straw man again.   They surely aren’t in loss territory, but the motivation for these discounts aren’t profits or increased sales.  In the case of failed units, they want to retain you as a customer for future sales rather than have you consider another system.  In the case of the 40% discount, S1 customers are maintenance support costs for Sonos, who aren’t buying very many new speakers since few current speakers even work on S1.  They want to provide incentives for you to get off of S1. 

My analysis of the customer/support person interaction looks more and more accurate as this thread moves along. 

You are so naïve. I do sourcing as a profession and I deal with large, distributors, manufactures retailers. You name it I know the game in and out. No business will open the doors to lose money and not maximizing their profit being the number one priority over anything.  It’s a game of cost versus gain for them. And you use the word fraud, what fraud are they trying to prevent bye, taking my property in exchange for a coupon that is less in value the ones you can get for free?  Realize that a coupon is worthless until the buyer redeem is it.  So if I don’t use it and they take my sub, tell me who is creating a fraud?  Yes, my guess in the specific percentage numbers are of my assumptions, but these are experienced and educated assumptions based on my profession based on the game.  Sonos has become much bigger company in the last years. They have many employees and overhead facility costs to pay for. There is no way that they will sell anything to anyone without a  profit margin. That is going to satisfy all of the investors, and be able to sustain turn on the lights for them.  Remember, Sonos is a publicly traded company. They will now and effect do not have the ability to even set a price as generosity or courtesy to anyone lower than their cost.  Most of what I say is actually common sense in the business world, and I am really surprised by the Content of your perception as kindness being the priority of a large publicly trade business entity and I will just leave it like that.