Warranty: Tailor-made ESPs
Customization has reached warranties.
Warranty companies are reacting to the recession and lower ticket prices with offerings that aim to make extended service plans (ESPs) as attractive in their pricing and feature packages as the products they protect.
It has never been a one-size-fits-all business. But even more intense tailoring of a contract to product, customer demographic and the culture of the retailer has become necessary. That's mainly because the average selling prices of service contracts have fallen with product prices.