The Secret to Selling Extended TV Warranties
Manufacturers, for their part, say the overarching reason to buy a warranty is ultimately about peace of mind, no matter the Consumer Reports findings. “The report deals with averages, while a consumer has to deal with their specific item. The average repair might be $300 on an item but some repairs are so large we simply replace the television or appliance,” said Michael Frosch, president and COO of The Warranty Group.
Frosch, like Caldero, said rapidly changing flat-panel technologies “from product enhancements, to parts suppliers, to where the product is manufactured, are all great reasons to protect your investment.” The Warranty Group’s ownership of all facets of the value chain - underwriting, compliance, regulatory, administrative and marketing support - helps it react quickly to performance and retail pricing shifts, Frosch said.
Although flat-panel TVs receive high reliability ratings, they are still perceived as a relatively new technology by mainstream consumers. On the other hand, the technology has been around long enough so that it is proven.