It will be no surprise to retailers already well versed in selling warranties with major electrical goods, that this particular sector of the retail market is very healthy indeed. When the chips are down, taxation is rising at the fastest rate for several decades and the future is far from certain, many more consumers are turning to the long-term peace of mind a warranty can bring to their major appliance purchases. As an attachment sale a warranty is the ultimate customer service proposition, ensuring the customer and their new purchase are cared for, without further cost, for the duration of the warranty.

Of course, everyone wants to purchase that new big-screen TV or washing machine and have absolutely no problems until it is well past its technological best-before date. While many consumer reports anecdotally say that products are now more reliable than ever, the actual statistics disagree. Globally, D&G has over 10m active warranties in operation and receives on average close to 2m customer calls per year. The ratio has remained pretty constant over the last decade and the bottom line is that nearly one in five customers will have some sort of problem with their new product within the first five years.

Offering a complete customer care package as an added-value service is a relatively straight forward sales proposition with a number of demonstrable consumer benefits. For the retailer there is the obvious up-front commission on the warranty sale, paid in full even if the customer opts for our 10-monthly interest free payment plan or our pay-monthly scheme. But the benefits extend much deeper into longer-term customer service and customer retention. Once your customer has a warranty you can act as a conduit for their service and repair queries by using our dealer support line and become involved and be paid for the repair if you have your own service agents. If the appliance is deemed too costly to repair a new replacement product is always sourced through the original retailer – again tying the customer into the retailer for the longer term.

OK, people who actually ask for repair protection plans are very rare indeed but that doesn’t mean they don’t want or need one. It is more likely that their minds are focused on buying a new product or they simply do not realise the features and benefits of modern plans. If you put the warranty sell at the beginning of a sale it must feel natural so that the customer does not feel pressurised. A great question to get the conversation going is simply asking them the reasons for buying the new product. It may be a simple upgrade but if it has broken down or was damaged accidentally then that leads naturally into highlighting the benefits of warranty protection. Even if the product is an upgrade purchase, the key is to sell a total peace of mind customer service package rather than simply a new product.

Opening with: “I want to ensure we are looking after you, so let me tell you how we can make this probably the last TV (fridge, washing machine etc) you will ever have to buy,” is bound to pique their curiosity. Your explanation can cover breakdown and repairs, and typical scenarios of things happening by accident – all of which are encompassed in warranty plan. These can be over three or five years with the option to renew at the end of the period and with D&G’s Pay Monthly plan the product can be pretty much protected forever. When it finally fails the customer will receive a new replacement product, sourced through the retail store that sold the policy and paid for by D&G.

Even when it comes to a breakdown there is an ideal chance to improve your customer service. If they have a service plan on the product you can reassure them that you can sort everything out and help is just a phone call away. Simply call D&G’s customer service line, make the introduction and hand over to the customer. With over 50 years experience in protecting people’s possessions and offering first class customer support, you can rest assured D&G will keep your customer happy.

For further information on retailing D&G warranty products,

contact D&G’s award winning dealer support unit on 08444 810 113

Handling Objections

It’s not always going to be plain sailing selling a warranty and many customers have objections because of preconceived idea of what warranties do and do not offer. Chances are that the customer does not realise how many different and versatile warranty products are available or the depth of cover and peace of mind they offer. Just because a customer comes back with an objection when you mention warranty products, it doesn’t necessarily mean the customer is saying ‘no’. Think about what the customer has said and don’t be afraid to ask them more questions to fully understand their objections. Your value as a retailer is in product knowledge and knowing the features and benefits of all your available service plans can turn an initial rejection into a sale. Here are the four most common objections to warranties and how to handle them:

1: “I’m spending enough already, I can’t afford to pay for cover”

Enquire whether it is the initial lump sum cost of traditional warranty products that is the problem. Suggest that they could break the cost down into up to 10 easy payments or have they considered a Pay Monthly Plan offering cover for a small fixed monthly fee that they can cancel at any time.

2: “The manufacture’s guarantee will take care of it if it goes wrong”

These days’ electrical goods are highly unlikely to fail in the first 12-month period with the majority of break-downs happening in years three to five years or longer. Moreover most problems from two years onward are often caused by wear and tear or accidents – neither of which will be covered by a manufacturer’s guarantee anyway.

3: “If it got damaged I would just claim off my home insurance”

The trouble with any household insurance is that claims can possibly affect the no claims bonus and you are likely to end up paying much more in increased premiums and policy excess for a single claim than an entire service plan would have cost. A D&G warranty offers peace of mind without the hassle of additional costs, forms to fill-in, loss of no-claims discount, or an assessors visit.

4: “I can’t believe I will never have to buy another product again”

Yes, it sounds too good to be true, but D&G plans are backed up by the UK’s number one customer care organisation and all information is contained within the supplied leaflet. D&G will rarely refuse warranty cover, meaning customers can keep a plan active until the product expires, receiving a new replacement model, sourced through the retailer, when it does.

Legal compliance – what you need to know

Selling repair protection plans or extended warranties are governed by the Domestic Electrical Goods Act 2005 but the requirements to comply with this legislation are relatively simple. It is the retailer’s responsibility that repair protection must be sold ethically, following these stipulations:

• Customer information leaflets must be readily available

• Leaflets should be clearly visible and close to the goods

• Price and plan duration must be clearly displayed

• Tables of prices and POS must be easily understood

• It must be clear that the cover is optional

• Customers have the right to request a written quotation

• Customers must confirm in writing they have received this quote

• You must keep all customer signature slips on file

• Quotes must remain in force for a minimum of 30 days

• Pay Monthly customers can cancel at any time with no refund

• Customers can cancel within 45 days and claim a full refund

D&G plans go beyond the 45 day cancellation legislation, allowing customers to cancel and receive a full refund at anytime within the manufacturer’s guarantee period, and cancel for pro-rata refund at anytime thereafter. This allows retailers selling D&G plans to offer customers complete peace of mind even if they want to cancel at anytime within the life of the warranty plan.

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