Top 5 Extended Warranty Sales Objections and How to Overcome Them

by Scott Walker on July 31, 2016
Find me on:


Android-based smartphones are great  technology, and their owners swear by them, choosing the same devices contract after contract. The platform is strong—and getting stronger upon each subsequent update—and the smartphones, as well as Android-based tablets, are profitable items to sell in your store.

However, Androids are like most technologies in that they occasionally break down. According to report, 85 percent of all smartphone failures occur to Androids. Some consumers understand that breakdowns happen, but others might blame you for the problem. Protection Plans are a great way for customers to ensure a broken  device will be fixed or replaced, and they also help establish you as a trusted partner, concerned about the products you sell.

Unfortunately, customers may be naturally resistant to Protection Plans extended warranties. The concerns are legitimate to them and should be taken seriously by your sales staff. Luckily, many of these objections are easy to overcome. Here are five such objections, with details on how to overcome each one:

1. “The warranty doesn’t cover the things, such as a broken screen, that I want”

Consumers may feel a broken screen or other physical damage might be their fault and think an extended protection plan won’t cover the repair or replacement. Some plans, however, will cover a broken screen—in fact, smartphone owners (particularly ones who are prone to accidentally dropping their devices) might opt for screen-only protection. So, your sales team must know what’s in the fine print of any protection plan you offer . If a customer discovers something isn’t covered that he or she thought was, you’ll be the one they blame  when the unexpected happens to the phone. Knowledge and honesty can go a long way to overcoming common extended warranty objections.

2. “It’s too expensive”

Smartphone’s are expensive.  That is why carriers subsidize or offer financing for the phones they sell. . Often customers don't realize that if something happens to the phone, they will have to pay for the repair or replace it at the full retail price; costing them up to $1,000 or more. Customers can be assured that low-cost options are available that won’t significantly increase their up front cost but will protect them  in the long run

3. “I don’t need it”

Everyone has e seen friends and family using a phone a with a cracked screen. It’s either too inconvenient to get it repaired , or they don’t want to pay up to $300 to replace the screen.  Often these customers are still early in their contract and will not qualify for an upgrade so the concept of paying for a replacement is a non-starter,   This toleration often is a result of the user being too far out of the end of the contract to get another phone. As you know, the latest smartphone purchased outside of a contract can cost a small fortune. So technically, consumers don’t need an extended warranty, but they might be wishing they paid the extra few dollars when catastrophe does strike their devices. Associates who can effectively articulate this not only make the sale, but also create happy customers who won’t worry about trying to read a cracked screen for several months.

4. “My friend owns a repair shop”

If a smartphone user has a friend who will fix a device, more power to both of them. More than likely, someone is still paying for that repair, whether it’s the user who may be getting a discount or the shop owner who is working for free or below his margins. Additionally, what kind of priority does the user’s phone have if the repairer is swamped? An extended warranty provides quality service that customers can rely on—and that won’t ruin friendships if there is a problem.

5. “I’ve had a bad experience with warranties”

Although it may not have occurred with electronics plans, most consumers have been burned by substandard warranties, whether it’s the roadside service that never sent a tow truck, a home warranty that didn’t cover the furnace that suddenly went kaput, or even a department store that wouldn’t exchange an item. This skepticism is natural, but you can counter it with the facts. Detail to the consumer what your extended warranty provider offers and is really good at. Walk buyers through the process so that if they must use the warranty, they won’t be lost. Again, you are selling peace of mind—do everything you can so that the customer is confident that the warranty will come through when needed.

What objections do you hear from customers about extended warranties?5 steps to setting up a warranty program cta

Topics: Extended warranty, Warranty