Selling Peace of Mind
Historically, customers were wary of buying an extended warranty or service agreement with their purchases. The increasing complexity of consumer electronics, however, is driving consumers to think twice before turning these policies down.
“People are buying them more,” said Peter Kotsakis, sales manager at Flanner’s Home Entertainment in Brookfield, Wis. “We have a pretty good attachment rate as far as selling warranties with video products.”
Customers today are seeking peace of mind and are willing to pay for it. When buying a plasma television, a home theater or a whole-house audio system, the extra cost associated with covering failures or breakdowns seems like an increasingly wise investment to consumers. “A TV set nowadays is not like it used to be five years ago,” Kotsakis said. “It’s a computer. Computers crash, computer parts can go bad, and these are very delicate, intricate machines. If something does go wrong, they are usually pretty expensive to fix.”