Adding Value to Appliances
The housing market slowdown has taken a big bite out of the home appliance sector. To prevent additional erosion, extended service plan providers are helping dealers wring the most profit from each transaction.
“The retailer has to have some incentive, from a pay perspective, for the plan,” said Sean Hicks, president of Warrantech. “If retailers don’t make it important at that level, sales personnel are not going to pitch it. Paying a commission, and paying a very good commission, is important.”
Robert Rosenthal, RepairTech’s national sales manager, has a similar philosophy about driving revenue and profit. “In sales, a financial reward is always the best incentive to achieve maximum bottom-line results,” he said. “It’s not uncommon for an appliance salesperson to earn anywhere from 10 to 15 percent commission for each ESP they are able to attach.”