Member Benefits

Get more out of every sale with Extended Service Plans

The foundation for successful Extended Service Plan sales starts with good product knowledge. An associate who understands the features, benefits, and coverage can offer the plan to consumers with confidence. Sales associates are successful when they ask questions and listen to their customer’s needs.

For example one should understand why the customer is buying the product in the first place. Are they replacing a defective product? Do they value convenience and ease? Do they place a high value on reliability etc. Once an associate can gauge the customer’s needs they are in a better position to explain how the Extended Service Plan will help them. Successful sales associates introduce the Extended Service Plan early in the sales process and continue to mention it throughout the sales process. Sales associates that only bring it up at the end of the sales process generally are less successful.

There will always be a segment of consumers who are not interested in the Extended Service Plan. It is critical that the sales associate ask questions and listen to their customers in order to quickly determine where their customer stands on the warranty. The key is to mention the extended warranty early and often, and not be afraid to ask for the sale. It should really be up to the consumer to decide if the extended warranty makes sense for them.

Extended Service Plans continue to be an important source of income for retailers as is the case with accessories and consumables. Despite the fact that hard good margins on consumer electronics and computer products have declined substantially over the years due to competitive pressures and manufacturing efficiencies, the cost of operating stores (labor, fuel, etc.) continue to rise.

Retailers are under increased pressure to provide competitive prices and a high level of customer service in an effort to remain competitive, yet they need to be able to generate enough margins to stay in business. Under these circumstances, Extended Service Plans provide a great solution. They provide sound margins, deliver a high degree of customer service and do not have the inventory costs associated with hard goods.

For more information about the VDTA/SDTA Extended Service Plan program offered by Bankers Warranty Program, contact Bruce Caldwell at 1-770-993-7054 or e-mail bcaldwell@bankerswarrantygroup.com .

Reprinted from Floor Care Professional, January 2008