Original sentence: "  He adds, "The company is much more likely to profit from the extended warranty than the consumer is."  In many cases, if the item does need repairing, the cost of repairs will be less than or equal to the cost of the extended warranty.Both are expensive to repair and need repairs frequently.Consumers Union says only two products deserve extended warranty consideration: projection TV's and digital camcorders.David Butler of the  Consumers Union says, "The extended warranty is definitely in the best interest of the company, but isn't often in the best interest of the consumer.Extended warranties are something of a cash cow for those who offer them.Few items that obtain extended warranties ever need replacing or repairing and, if they ever do, many consumers forget they purchased the warranty or know how to invoke it: often the customer just ends up buying a new replacement product.For the few instances where retailers do have to honor an extended warranty, the volumes of unused or unenforced extended warranties more than amply cover the cost of replacing returned items.However, in most cases, extended warranties are not worth the extra cost.In addition, the offerer of an extended warranty may claim the product was abused or not used in a manner consistent with "normal wear", handling typically not covered under the warranties.In most cases, the manufacturer's standard warranty is sufficient.Most consumer advocate groups, such as the non-profit Consumers Union, advise against purchasing extended warranties
Edited sentence: Extended warranties suppliers must set prudent provisions in their accounts for the cost of future warranty claims arising on business written.Reputable suppliers will cost and price their warranties using statistical techniques based on their historic loss experience.Suppliers that fail to properly price their warranties face a significant risk of ruin.They should monitor the frequency and severity of warranty claims arising each year against the year of inception and compare these against their original pricing estimates