This is where you offer to cover the item for longer for an extra charge.
This is perfect for items that people will keep for years and use regularly. Especially those that have a tendency to break down.
Used cars is a brilliant application of the idea – offer to cover all mechanical work for the next 2 years, for an extra $500.
This is an easy way to gain more wallet share. When your customers make a purchase ask them if they would like to pay extra to get an extended warranty. Your customers will jump at the chance to buy the extra peace of mind particularly on major purchases. This must be done at the time of sale.
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October 27th, 2011 11:24 am
Good tip – though anyone thinking of doing this might need to consider first whether the goods they are selling are already covered by the existing consumer guarantees. Consumers should not be asked to pay for something that may already be their legal right under those laws. See last para in my blog here: http://blog.execstress.com/2011/10/warranties/