benefits of structuring an extended warranty platform

We can tailor make programs to meet  your needs. You may be completely risk averse or you may be seeking to take items of your balance sheet. We have structured solutions to give clients the confidence to launch new product offerings.    

A program can be structured to protect your investment in your rental fleet or to cover extended warranty requests from your customers. As well as New Equipment we also offer Used Equipment Protection, and can design specific loyalty programs. 

Advances in online technology and ecommerce has changed both the distribution channel and the medium for acquiring expensive equipment purchases. Comfort levels are considerably enhanced when a customer purchasing a piece of equipment, particularly if it is used, has the knowledge there is warranty protection involved. 

Structuring a Warranty correctly can greatly enhance a dealer's ability to capture customer's loyalty. This should run for the term of the plan and can be an inexpensive way of retaining business.  Significant benefits are:

• Higher business retention and repeat business. The customer will consistently return to the dealer to have their machine serviced
• Enhances resale value 
• Provides an alternative stream to generate revenue from warranty labour and parts sales as repair parts reimbursements are typically at the manufacturer's suggested retail price on approved claims
• Allows enhanced  profitability as dealer purchases at wholesale value. Mark-up to Customer when sold.
• Great Marketing Tool as a well designed marketing campaign can enhance not only the sale of the equipment but the brand of both the OEM and the Dealer

Providing protection from the start can greatly enhance a manufacturer's ability to manage warranty costs and provide it with a great tool to assist marketing efforts. Significant benefits are:

• Removal of balance sheet accruals and liabilities related to projected warranty expense
• Greatly reduce direct administration expense and allow the OEM to redirect resources to other aspects of its business
• Greater analysis of claim failure reporting. This will ultimately lead to greater customer experience.
• Reduce the need for cumbersome documentation and tracking
• A ready structured avenue to generate profit from warranty parts sales as repair parts reimbursements are typically at the OEM's suggested retail price on approved claims
• Dedicated resource to manage all warranty contracts and claims. This will better manage unrecoverable costs from suppliers
• Third party online portal (at no upfront cost to the OEM) will allow the OEM to track all warranty occurrences in real time  
• Leverage Third Party network of alliances to offer extended protection programs in overseas territories

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