Putting a Fresh Face on Warranties
Mike Frosch, a 25-year warranty industry veteran, is now an entrepreneur looking to put a fresh face on the warranty business with his newly formed company, Personal Safeguards Group (PSG). He has seen plenty of opportunity in the market for a firm that focuses on supporting dealers and vendors in driving customer acquisition and retention through an approach that helps them develop differentiated factory warranty and extended warranty strategies.
On the retail side, customers need good reasons beyond mere protection to buy a warranty, Frosch said, especially with consumer electronics becoming less expensive with each product generation and warranties that consumers feel are not worth the price of protection.
“Here’s an example: for a $299 laptop, a three-year accidental damage warranty is $199. It’s very difficult to get someone to spend that kind of money,” he said.