Ah yes, the common response people give when they’re about to make an expensive purchase on an appliance, computer, or all those other must-have gadgets. This is a very good question, why should your customer purchase extended warranty? Now as salespeople, you will probably say, “It’s for peace of mind!” or “Don’t you want to protect your investment?” Let’s cut the nonsense here because we’re a little tired of hearing these responses, and so is your customer!
Yes, extended warranty does protect your customer’s investment and it does ensure their expensive product has a long-life span. However, what people don’t understand is the money it saves them. You’re probably thinking, What the heck are they talking about! So, let us explain.
First, let us give you a little background on the appliance industry. Appliances today are built completely different then they were 20 years ago. Most manufacturers are worried about saving money, and they try to build as many appliances as possible in a short period. This is not to say appliances were better 20 years ago, all we’re saying is, they’re built differently, which could cause for errors in the manufacturing process.
Second, appliances are built to be energy efficient, which increases the use of advanced technology. The increased use of technology along with using your applaince evry day means there is a higher likelyhood that something can go wrong. Just look at your computer, for example, how many times do you have issues with it?
As we mentioned at the beginning of this article, extended warranties can save your customers money. If your customer purchased the extended warranty on a Samsung refrigerator and it breaks down unexpectedly, they won’t have to pay all the fees associated with a breakdown. Did you know a service call alone costs on average $200? And that’s just for them to come a look at the appliance to determine how to fix it. In comparison, purchasing extended warranty, will cost your customer much less than the service call and their appliance will be protected for up to four years!* Prices vary based on the store, appliance, and term.
Sadly, the payments don’t stop there. Then they have to pay for the part to fix their broken fridge, which on average cost around $551 (see the cost info-graphic below), and for comparison sake, for one year of warranty, it would only cost your customer $45! * Prices vary based on the store, appliance, and term. And let’s not forget about the labor costs.
Clearly, buying an extended warranty makes sense! Next time your customer tells you warranties are a waste of money, share with them how much time and money they can save!