Added Value, Warranties in 2005
As the prices for new technologies fall, service providers have needed to adjust the types of plans they offer accordingly. For example, replacement plans have become more aggressively promoted for many less-expensive products like DVD players, VCRs and some types of televisions. In many cases, this is an overall more cost-effective solution than repairing the product, and the customer gets almost immediate satisfaction.
"Customers like the idea of the replacement plan," Wolfson says. "They like having that option because they don't have to wait for repairs."
While the dropping cost of products has hurt some extended service plans, it has added to the upswing of replacement plan policy sales. Wolfson says keeping a constant eye on these costs has helped keep VAC on top of things.