The Secret to Selling Extended TV Warranties
Steve Caldero, senior vice president and COO of Ken Crane’s Big Screen Headquarters, based in Hawthorne, Calif., said the reason some underwriters have been slow to react to TV cost reductions at retail is that such steep and sudden price declines are relatively new to the industry.
“Frankly, they have very little track record with this stuff. Everyone’s in business to make a profit and is trying to figure out how they can be competitive but still cover themselves as far as what problems are going to be,” Caldero said. “It has been getting better within the last six months, however, and warranty prices have been coming more in line with TV prices.”
While Caldero is confident of the reliability of the brands he carries, he believes there are still too many reasons to encourage consumers not to say “no” to a warranty purchase. TVs vary in design, replacement parts are expensive and can be hard to come by - at least until manufacturers get a better feel for how many extra parts to source for that purpose - and panel history is too short to foster full confidence, dealers said.