Do you sell laptops but you find it difficult to convince customers to pay extra for warranties? If YES, here are 11 tips on how to sell warranties on laptops. Warranties can be said to be pledges made by product manufacturers to repair or replace products in the event of damage.
Though most products like electronics, cars and other such valuables usually come with manufacturer’s warranty that protects the products against damage for a certain period of time, but these days, product retailer now offer extended warranty in addition to what manufacturers offer.
What is an Extended Warranty?
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty that is provided by manufacturers on new items.
The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. Warranties which are sold through retailers such as Best Buy and other related stores may include significant commission for the retailer as a result of reverse competition.
Extended warranties come with a lot of benefits such as they allow consumers to avoid the anxiety and financial loss due to an unexpectedly high repair bill. Second, if a product breaks, consumers do not have to invest time to search for a company to undertake the repairs, they can easily take it back to the retailers.
Again, if the product cannot be repaired due to extensive damage, if it just packed up or blew up, it will be replaced. Extended warranties also mitigate the concern of consumers being “ripped off” on the repair, because service companies have an incentive to fix the problem efficiently.
But despite these awesome benefits, customers are very skeptical when presented with the chance to purchase extended warranties for their devices, like computers. Even now, there are plenty of mixed views as to how worthwhile it is for consumers to pay for something they might never need, or already be covered.
While there have been unscrupulous activities in the past with regards to the sale of extended warranties, but today, these services are scrutinized far more closely than ever before, and not just by consumers. Reputable warranty providers are authorized and regulated by the Financial Conduct Authority, which means that consumers are protected against fraudulent and mis-sold policies.
The policies must deliver on their promises, and these are required to be clear and transparent and be sold correctly. Regarding the skepticism people have when they are faced with the idea of buying extended warranties, it now behooves on you, the seller to know the best approach to sell your warranties.
If you are a sales person selling something like computers and you are not having much luck, or are even afraid to broach the topic of extended warranties to your customers, we have provided you some tips that will enable you better market these extended protection services that come with your computers.
How to Successfully Sell Warranties on Laptops to Customers
Table of Content
- Tell every customer about the plan
- Convince them that they need it
- Timing is everything
- 4. See the warranties in the same light as the product
- Make use of special promotions
- Believe in the warrantee you have for sale
- Be professional
- Be familiar with the prices
- Know what is covered and what is not
- Present the plan to the buyer as soon as possible
- 11. Don’t look desperate
Tell every customer about the plan
There is not use assuming that your customers that are buying computers would not agree to buy the warranty plan that comes with it without even telling them about it. Your job is to sell these plans to every customer that makes a purchase from you.
Some customers may be more skeptical than others, and some people will say No out of habit, but many people are open to the idea of buying a warrantee, providing they’re not already covered by another insurance plan, and the proposition makes sense and has clear benefits, then they will go for it. The key here is to tell every single customer about extended warranty and not make unfounded assumptions.
Convince them that they need it
Yes, some customers need to some conviction before they agree that they need something. This is where your skills as a salesperson come into play. You should show them what they are losing and what they stand to gain if they buy the plan.
For example, lets assume that you are dealing with a $200.00 laptop with a factory warranty of 90 days labor and one year on parts with a $75.00 ESP for 3 years. You can tell the customer, “So Sir, are you saying that you would rather spend $200.00 twice for a total of $400.00 and still end up with only 90 days of warranty?”
“Doesn’t $2.08 ($75.00 over 36 months) per month make more sense than $11.11 per month to know that it will always perform at peak efficiency? And, if at any time it’s not repairable, we’ll throw it away for you and the next one is on us.”
It depends on how you make your argument, but if your pitch is presented convincingly, you will always make a sale.
Timing is everything
It’s no good ‘reminding’ someone that you can offer them a five-year service plan for a few extra pounds when they’re at the till paying for their computer. In order to make customers feel comfortable with the idea that they may have to pay a bit more for extra protection, and to allow enough time to show the benefits of extended warranty properly, you need to bring it into the conversation early, usually around the time you start to get interest on the product you’re demonstrating.
Try it. Don’t spring it on customers suddenly but test them first, see how receptive they are. If you get your timing right, you are more likely to make a sale.
4. See the warranties in the same light as the product
It is very beneficial for you to think of your extended warranty in the same way you would see a boxed product a customer can take off the shelf and pay for at the till. It may sound too simple, but you need to remind yourself that an extended warranty has features and benefits the same as anything else on your shop floor, so as you sell the benefits, link them back to your customers’ needs and manage their objections.
Selling your warranties would be easier if you view them as shop products that need it be sold. At least, it would give you better motivation.
Make use of special promotions
Another tip you can employ to sell warranties with computers is to utilize special promotions. You can use special promotions to force you and your team to include Protection Plans in the sales process. You can create a promotion that will enable customers to get the warranty for 50% off if you didn’t offer it before check out.
You will definitely get an increase in sales rate because your salespeople will know that if they didn’t present the Protection Plan, the cost would be charged against their commission. After a few people are penalized, other sales people would sit up.
Believe in the warrantee you have for sale
You need to believe in your warrantee to close more sales. If you don’t, you won’t build trust with your customers, and you will only close sales based on fear and pressure. Believe it or not, but customers would know if you do not trust the warranty you are selling to them.
To increase your trust in the extended warranty you are selling, you may have to ask your warranty department for feedback on customer claims. When you hear about “real-life” experiences customers have had, it will give the confidence that the program you are selling has value.
Industry research has proven that 25% of customers who come into your store will purchase an extended warranty if it is offered to them in a positive and professional manner. So, as a salesperson, you need to be professional when approaching your customers. You must know all about the warrantee you are offering, and try as much as possible not to pressure your customers.
Be familiar with the prices
It’s amazing how many times salespeople will try to close the customer on the sale of protection plans without knowing the actual price. Of course it’s one of the top questions most customers will ask, right after “what does it cover” or statements like “those things are a rip off” or “no thanks”. The sales person just stands there with a stunned look on their face, and no idea what to say other than “it’s a good deal, can I write it up for you?”
To prevent this from happening, you must know the price of what you are offering. As an aid, you can post the price on the product specification card. Even better, quote the computer with a Protection Plan as a total solution (warranty, cables, install) and then quote it again as a monthly payment. It makes the purchase seem much more reasonable for the customer.
Know what is covered and what is not
If you don’t know the features, and most importantly the benefits of the warrantee you are offering, there is no way you can appear credible to your customer. Customers make purchase decisions based on emotion, and trust in you as a sales consultant – they have to “feel” what will happen if they purchase the plan. Also, they need to “feel” what the pain might be if they don’t. But most importantly, they need to like you and trust you.
Present the plan to the buyer as soon as possible
If you want to be effective at selling extended warranty plans, you must never wait till the last minute before introducing the plans to your customer. If you want to really rock at selling warrantee plans, you need to take the consultative sales approach and lead the customer to their buying decision.
It makes no sense to chase a customer into the parking lot to close the warrantee sale. It would not only irritate the customer, but show you off as being unprofessional. Practice your pitch – role play with your fellow salespeople on how to present the core product and the related services. You need to be knowledgeable, trustworthy, and credible.
11. Don’t look desperate
There is this thing about desperation that puts people off. If you are desperate to sell your warrantee plan, you customers would sense that either the computer you are trying to sell them is defective in some way, or you are trying to rip them off with the warrantee.
Either ways, you can easily lose not only the sale of the warrantee, but the sale of the computer too. You just need to present the facts as it is, showing off all the merits of the plan, then leave the customer to make his or her decision. Trying to be a hardball might rebound on you.
Some Customer’s Objections to Buying Warranties And How To Tackle Them
If you have been a sales person for sometime, you must have come across the various ways customers object to the sale of a warrantee. Here are ways to tackle some of those objections.
a. It’s not in my budget
This is one of the common things people say when they come to buy computers and they are presented with a warrantee plan. Yes, it may not have been in their budget, but that does not mean that they cannot afford it. You can approach the situation by telling them;
“Sir, I believe your budget is designed to control costs. If you get this warrantee, you will never be surprised by an unexpected repair bill.”
b. I may not keep this computer that long
Some customers may say that they will not keep the product for the length of the warrantee. This is where you should remind them that the protection clause is transferable. You can say;
“Sir, the ESP is transferable which can actually add to the value of the system at sale time.”
c. I think the manufacturer’s warranty is enough
Be assured that quite a few people will raise this objection, and in all honesty, it is a valid assumption. But you need to remind the customer that not all parts of the computer are protected in the manufacturers warrantee. You can say;
“Sir, let me show you the parts that are not covered in the manufacturers “limited” warranty.” “With my ESP there are no parts exclusions.”
d. I’m thinking about moving out of the area
Customers think that if they move, they would no longer have access to the warrantee they purchased. This is where you get to dispel this thought by telling them affiliate store they can visit and present their warranties if they run into any issue. You can say;
“Sir, our plan is covered by over 12,000 affiliate shops in all 50 states of the united states.
Frequently Asked Questions
Can You Sell A Warranty?
Yes, you can sell a warranty and as a matter of fact, it is beneficial to both you, as the salesperson, and the customer. Making the warranty sale part of the original purchase is a great starting point but be sure to keep an eye out for additional opportunities to speak to your customers in the future so you can sell them a warranty and increase your bottom line.
How Do You Value A Warranty?
The most objective way to measure the value of a warranty is to compare its cost against that of potential repairs or replacement. Combine your research on the odds of product failure, repair costs, and replacement costs to figure out a monetary amount of risk.
What Is The Purpose Of Reps And Warranties?
The purpose of representations and warranties is to disclose information between the two parties. Those given by the seller in a business contract tend to be more extensive because they could include information about stocks, liabilities, assets, and any target companies involved in the transaction.
What Is An Implied Warranty?
An implied warranty is an assurance that a product is fit for its intended purpose. These implied warranties can be made written or orally. Implied warranties are governed by state laws, not federal laws. The two key types of implied warranties are merchantability and fitness.
What Are Reps And Warranties?
Reps and warranties is a term used to describe the assertions that a buyer and/or seller makes in a purchase and sale agreement. Both parties rely on each other to provide a true account of all information and supporting documents to close the transaction.
How Does A Warranty Work?
The way a warranty works may differ from one product and company to another. You might offer a warranty against defects (also called a manufacturer’s warranty) when a customer buys your goods. A warranty against defects doesn’t promise anything about the product itself. It simply makes a promise to fix faults or problems—for example, you might give the customer a replacement.
What Is The Difference Between A Warranty And a Guarantee?
A warranty is a guarantee of the integrity of a product and of the maker’s responsibility for it. In a sense, a guarantee is a more general term and a warranty is the more specific (that is, written and legal) term. Purchasing a product covered by a warranty can help ensure your peace of mind. If things don’t work as expected, a warranty may allow the purchase to be returned, replaced, or repaired. A product’s warranty acts as a guarantee that it will perform.
What Is A Warranty Deed?
A warranty deed is a real estate document that warrants—or promises—that the grantor (seller) owns the property free and clear and there aren’t any outstanding mortgages, liens, judgments, or other encumbrances against it.
How Do You Offer An Extended Warranty?
An extended warranty sometimes called a service agreement, a service contract, or a maintenance agreement is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer, or the manufacturer. Extended warranties cost extra and for a percentage of the item’s retail price.
What Kinds Of Products Do CPS Warranties Cover?
CPS provides warranties for iPhones, iPads, laptops, and other electronics. They cover 100% of parts and labor for covered repairs. When you purchase a Replacement Plan, your entire product is covered! In addition, some plans include accidental damage from handling (ADH) coverage for enhanced protection. Claims resulting from misuse, abuse, or negligence are not covered.
Who Is CPS Warranty?
CPS is a leader and innovator in the field of service plans. The company offers extended warranty coverage for virtually all high ticket consumer purchases ranging from high-end consumer electronics to computers, major appliances, power tools, lawn & garden equipment, and more.
Do Dealerships Get Paid For Warranty Work?
Generally, the manufacturer pays a lower labor rate to the dealer for warranty work. And, because the parts come from the manufacturer, the dealership can’t earn its usual markup on the cost of parts. The manufacturers traditionally made it less appealing for dealers to do repairs under warranty.
How Much Does a Bumper-to-Bumper Warranty Cost?
A bumper-to-bumper warranty comes free with new vehicles, but it will only last for a certain period of time. After your factory coverage expires, you can purchase an extended bumper-to-bumper warranty, which can cost between $500 and $1,500 per year of coverage.
What Happens If A Representation Or Warranty Is Breached?
The representations and warranties allocate risk between the parties and serve as the foundation for an indemnification claim in case of a breach or inaccuracy. A breach or inaccuracy of a representation or warranty can also provide the other party with a right to terminate or refuse to close the transaction.
How Does CPS Send The Warranty Information To The Customer?
Once you purchase the accidental or non-accidental warranty, the bookstore will send your info, and CPS will send you a confirmation email within 7 days to give you a heads up that the warranty was processed.
Why Are Reps And Warranties Important?
Reps and warranties are important because they allocate risk between the parties and serve as the foundation for an indemnification claim in case of a breach or inaccuracy. A breach or inaccuracy of representation or warranty can also provide the other party with a right to terminate or refuse to close the transaction.
Can A Warranty Be Denied?
Yes, a warranty can be denied especially when there is suspicion of misuse or abuse. Many warranties have clauses stipulating that only repair resulting from ‘normal’, ‘regular’, or ‘expected’ use will be covered. So, basically, anything that goes beyond the normal operation of the vehicle could be grounds for a claim denial.
What Warranties Apply To Sales Online?
There are several warranties that apply to sales online and they are;
- The UCC warranty provisions
- Express Warranties
- The Implied Warranty of Merchantability in sales by “merchants.”
- The Implied Warranty of Fitness for the Particular Purpose.
- The implied warranty of title and against infringement.
- Disclaimer (exclusion) or modification of warranties.
- The implied warranty of merchantability.
- The implied warranty of “fitness for a particular purpose.”
How Much Do Car Dealers Make On Extended Warranties?
Each warranty plan a dealership sells can add up to $2,000 per purchase to its bottom line. The average dealer generally makes up to half of the selling price of an extended warranty. For example, if you purchase an extended warranty for $2,000, the dealer may make a profit of up to $1,000.
Can You Negotiate Extended Car Warranty?
Yes, you can negotiate an extended car warranty. As a matter of fact, you should note that dealers will mark up the price by as much as 200%, so you should always negotiate the price of an extended warranty.
Does AAA Offer Extended Auto Warranties?
Yes, AAA offers extended auto warranties and they can help you avoid unexpected, costly repairs on your new or pre-owned vehicle with an extended warranty from AAA. Their cost-effective plan options extend coverage to virtually all mechanical and electrical components after your original warranty expires. AAA Vehicle Protection Program Warranties are competitively priced.
Should You Buy A Warranty On A Used Car?
Experts would not recommend buying an extended warranty on a used car. This means you will likely spend more on the extended warranty — $3,000 or more, in some cases — than any repair costs your car may accrue during the period when the warranty stays valid.
What Are The Four Types Of Warranties?
Four common types of warranties are the; express warranty, implied warranty, extended warranty, and special warranty deed.
How Much Does Warranty Cost For Used Car?
Typically, the average extended warranty for used cars ranges from $350-$700 per year, but every person and policy is different. Typically, cars with a higher age or mileage will have higher prices.
Can You Get A Warranty On A Used Car After Purchase?
Yes, you can buy a car warranty after getting your car if you shop with third-party providers like CARCHEX. On the other hand, a manufacturer’s warranty from a dealership will typically only offer used car warranties on the day you purchase the vehicle.
What Does Bumper To Bumper Warranty Not Cover?
Parts not covered by a new vehicle bumper to the bumper warranty are mainly wearing items ie. parts of the vehicle that deteriorate through constant use such as wipers, tires, brake pads, brake rotors, light bulbs, and window glass.
Is Carshield A Good Warranty?
Yes, Carshield offers a good warranty and as a matter of fact, CarShield offers six warranty plans that range from comprehensive exclusionary coverage to a basic powertrain plan. Thousands of CarShield reviews rate the company with 4.1 out of 5.0 stars on both Google and Trustpilot, and it is one of the most popular warranty companies in the industry.
Are Extended Car Warranties Worth The Money?
Well, while it may sound like a good idea, in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
How Does Warranty Work On A Used Car?
When you purchase a used vehicle, you may have the option to purchase a service contract, also known as an extended warranty. With a service contract, the dealer agrees to perform or pay for certain repairs or services on the car. You can buy the coverage for an extra cost.
What is a Mack Warranty?
Mack Trucks covers faulty materials and/or workmanship for one year on aftermarket parts sold through the network of authorized Mack dealers. Their network is available for free repairs within the warranty period.
What Are Warranty Products?
Product warranty is the guarantee a manufacturer of a product gives to the customer regarding the quality of their product and what compensation will be given if the product does not perform as advertised. Warranties will generally have exceptions to them that limit a manufacturer’s obligations.
What Does 5 year 60000 Mile Powertrain Warranty Mean?
The powertrain warranty comes hand in hand with the bumper-to-bumper warranty, but it typically lasts a little longer; most automakers offer it for up to five years or 60,000 miles, whichever comes first. It covers only the parts that make the vehicle go: the engine, transmission, and drivetrain.
How Much Does An Endurance Warranty Cost?
According to Endurance, it usually costs between $350 and $700 yearly. The more basic plans are very affordable, at just $30 a month, though the more protection you get, the more it will cost. In general, older vehicles will come with a higher price tag for warranties.
Can You Get A Warranty On A Privately Sold Car?
No, you can get warranties or guarantees on a privately sold car. This is because private sales aren’t covered by any warranty and if any problems arise, it will be your responsibility to repair them. With a private sale, an independent inspection is even more important than if buying through a dealer.
Are Extended Warranties A Waste Of Money?
Extended warranties are rarely worth your money. Products don’t break on their own, and when they do, the price of repairs is usually lower than what you’d spend on an extended warranty. In most cases, it is best to skip the extended warranty and use your extra cash to build up an emergency fund.
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