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Why Are Warranties Important for a Customer?

Customers always want warranties, whether you deal in product-related or service-related business niches. Some competitors in the market might offer warranties for their business and make their services feel more attractive to the customers. At the same time, there might be some cons of warranties for businesses and customers.

Pros of warranties for businesses and customers.

Starting with the pros, here is a list of the best benefits of warranties for both customers and businesses.

1.      Warranties help your business offer assurance and peace of mind to customers.

Providing a warranty for your product or service is the best way a business can offer peace of mind to customers. Whenever buying something or trying a service, customers want an option that brings the best value for their money and offers all the reliability.

That’s where your business can be an attractive option by offering limited warranty coverages. That coverage covers faulty products and services and offers exchange/additional services without cost in case of a claim.

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2.      Warranties help you achieve a higher position in the market.

The competition in the market is about attaining more customers, and warranties work both ways to achieve a higher position in the market. You can set your business different from all other competitors.

For instance, if a customer is looking for plumbing professionals, and your business is the only one to offer a limited leakage-free warranty for a water heater, the chances of customers selecting your business over other options in the market will increase.

3.      Customers find your business a better option when you offer a warranty.

Customers are always looking for the best value for their money. In a warranty case, value for customers comes from the fact that service providers will bear all the costs and efforts to resolve any problem if faced.

Even when a competitor offers a similar warranty, you can make your business appear a better option in competition by specifying how you improve the service quality and how you are confident that the customer may never need to claim the warranty.

4.      Warranties can help businesses earn more revenue.

It is a psychological situation with people that whenever they buy something, they are ready to pay a little more when they get assurance about reliability. When you set limited warranties, your business may understand that not every customer will make a claim.

So, when more people are selecting your services at a higher cost because of warranties, and you only have to deal with a few claims, it will be an overall increase in revenue for your business.

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5.      Enhanced customer satisfaction through warranties increases loyalty and passive marketing.

Whether a customer faces a situation where he needs to claim a warranty or not, warranties will be that value-added satisfaction that will bring great value to the business.

Firstly, warranties and satisfactory claims make customers loyal to your business. Customers knowing that your business is trustworthy will make them return to you in the future.

Secondly, whenever someone asks for a recommendation, there are chances that a previous customer will recommend your business. In this way, you may benefit from word-of-mouth passive marketing.

Cons of warranties for businesses and customers.

As mentioned earlier, there are certain cons of warranties. Below is the list of the top cons of warranties that customers and businesses may face.

1.      You never know when you will find a miserable client who would exploit this service.

You surely are attracting customers by offering them great warranties. However, your business never knows when you may face a miserable client who would exploit this service of yours. The client may be causing the damage by themselves just for fun.

Similarly, some customers like creating drama over warranty claim even when they don’t meet the limitations. In the worst case, a customer may sue your business for a warranty claim, and in either of these ways, your business may suffer a lot.

2.      It is impossible to achieve 100% success, so you always need to be prepared for it.

If you are selling 100 products, there are chances that not all of them will be perfect. Similarly, if your company installs tiles at 100 homes, you cannot say that all 100 of them will be successful installation.

There is always a case with outliers requiring you to do a little extra, and that’s where you may need to provide services against warranty claims. So, as a business, you must always be ready to face a claim.

3.      Managing your resources for unexpected claims can be an administrative headache for businesses.

Businesses must manage several types of resources, including human resources, tools, and, most importantly, their time. When you have everything scheduled for days or weeks, and suddenly you face a warranty claim that needs an urgent service from your business, managing all types of resources in such situations can be difficult.

Tip: Always have some spare resources available to deal with warranty claims.

4.      One of the biggest cons for customers is that they need to wait for the coverage service.

As a customer, the biggest con of getting warranties is that you may not get served urgently. Businesses need to manage their resources, and they give you a schedule for your warranty claim. In most cases, that could be waiting for days for a job that would otherwise cost only a few dollars.

5.      As a customer, you have to face certain limitations for warranties

Customers face another major drawback with warranties where they must meet certain requirements. Moreover, warranties have several limitations that make a customer ineligible for a warranty claim.

Although these limitations are created to maintain a fair service routine with customers where neither the business has to suffer nor any customer. However, most of the time, a customer would face him having peace of mind until he finds out that he is not eligible for the claim.


Warranties can improve a business’s image, which is amazing in attracting customers. However, businesses must be strategic enough so that the warranty services leave no negative impact on the customers. With everything set strategically, a warranty can benefit both parties, with none having to go through any critical downsides.

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