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Why Warranties Are Important for a Customer – Pros and Cons of not having a warranty and having one
If you have a warranty and offer it with a service or product makes you more attractive to be considered, and also the customer can more easily pursue the one. Good warranty means that you are a serious company that takes care for its customers and customers’ satisfaction. Here are several pros and cons when offering a warranty:
- Warranty can give some assurance that the product or the service is reliable
Warranty lowers the resistance or doubt for buying the service or product from you. It is assurance that the products or services are not faulty or are not effective. With this document you give support to your future client, if something wrong happens to the product (you should name the circumstances that are included and the circumstances which are excluded).
- Makes you more appealing and gives you advantage from the competition
As a part of you personalized offer, when you offering a warranty for your products or services, means you are different from the other competition.If you can get information about the warranties of the competitions, you can make better conditions and point in your own warranty and this will increase the attractiveness of your product or service.
- With the warranty you can also make a Declaration for confidence
If you offer a warranty, this means you will cover all the cost and labor for fixing certain problems. And will further assure the client for your advantage and make them purchases your product or service. In this manner you will gain more clients and more regular clients that will serve you as a “mobile advertisement” without costing you more money for adds.
- Attracting “bad” clients
If you offer a warranty, on the other hand, you will offer your assistance to all clients. Most clients will not take this for granted, but you will always have several clients who will test your warranty deliberately – and see how you will react in such event. It will cost you money and time.
- You are not capable to meet expectations from the warranty
A disadvantage when you offer a warranty is that rarely you will be able to have a solution for each problem, and meet all expectations to the client. And many clients will call on the warranty even if the damage is outside of the terms in the warranty. In this case, you may lose further the client, and jeopardize future trust in your brand in general.
- You could have a headache of the further administrative work
If you are company of this field and offers a warranty that means commitment to abovementioned. This can be effective for larger period of time – from weeks to years. Administrative labor and their provisions will be made, meaning keeping track of the old and new clients, old (and sold) products, portfolio of new products and also basic documentation regarding warranty of every product line or series.
The case of extended warranty
You might sell a products with extended warranty, with validation of several years. Make sure that you cover all cases, except cases of damage caused by normal tear and wear. Extended warranties are good for your business because they cost more. They cost more because of the possibility of repairs during longer period.
Try and sell more extended warranties. Your costumer of one time can easily be an old and frequent one.
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Extended warranty for electrical gear
The law for selling goods says that stores which sell any kind electrical goods (washing machine, freezers, mixers of any kind), must also include the option of selling extended warranties. Buyers must be aware that with this extended warranty, there is also termination and cancellation rights included.
The law and all other sub divisional articles and point in different law branches suggests that physical, online and catalogue sellers of electrical gear which also include extended warranty must also:
- the price and the duration of the warranty of every item is put on visible place and have a clear voice, duration and price noted (on the package or on different document in the box of the products.
- also make sure that the buyer have the right not to buy the extended warranty – it is optional
Whenever are you present (directiories, shops, website, other advertisement material) you must make sure the buyer also understand the following:
- the legal rights about those electrical goods and the place where they can find additional information
- if this kind of warranties can be found on other places
- if their household insurance can cover the electoral items
- rights of termination cancellation, if any
- protection of their finances if your store closes down
- if the extended warranty will stop if certain claim is made
Law also states that you must put adds in magazines, flyers, and magazines for at least one extended warranty.
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