Extending Warranties’ Appeal
November 1, 2007

Extended warranty sales have always been the icing on the cake for retailers during the frenetic holiday selling season. In this year’s Christmas rush, however, the execution of a warranty sale could spell the difference between coup and calamity on the sales floor. The reasons are many for that precarious position, especially the squeaky-tight margins on most flat-panel televisions. In light of a retail atmosphere where even titans like Circuit City—which cited a 38 percent drop in warranty sales as one reason for its second-quarter losses—are taking it on the chin, how do warranty companies view market conditions for their product? And

Service Plan Squeeze
March 1, 2007

Two years ago, attaching a warranty to a flat panel television was a no brainer. You spend $10,000 on a television, there’s no way you’re going to walk out of the store without some protection. But what happens when the TV doesn’t cost 10 grand anymore? Now that you can walk out with a nice flat panel for less than $2,000, are you still going to spend more to get the extended warranty? If you ask those who offer extended service plans, the dropping prices doesn’t make a difference. “It really doesn’t affect it because the warranty is geared towards the retail price of the unit,”

The Contract Tier
September 1, 2006

If there is one definite trend in retail today—and it’s an unfortunate one—it’s that the margins on just about every product are eroding. Nowhere is this more apparent than in LCD TV, where the average selling price is dropping at a rapid pace, forcing retailers to sell more TVs to reap the same profits they made a year ago in the same category. As most retailers know, a good way to ease the burden is to attach a warranty to the sale. It’s one of the best ways to get profit back to retail. So much so that extended services account for a lion’s share

Beyond the Bottom Line
January 1, 2006

Extended-service contracts don't just boost profits By Nancy Klosek There's an inescapable duality about extended warranties. When a customer buys a service contract, he is both buying a very costly piece of paper whose worth may never be realized while at the same time a very inexpensive solution to a potentially expensive problem. Warranties, unlike the products they are fashioned to cover, are much more than meets the eye. So companies in this trust-based business of product protection realize the need to be as transparent as possible to the retailers and consumers they serve. Dealerscope polled several major CE/appliance warranty executives this

Streamlining the Service Repair Experience
May 1, 2004

Warranty/ESP companies tweak high-tech, high-touch solutions to deliver a quality service repair experience. By Janet Pinkerton A consumer with a product repair request is a ticking time bomb. Handle the repair well, and the experience can cement the consumer's brand loyalty to both manufacturer and retailer—not to mention raise the perceived value of a service contract or warranty. Fumble the repair service experience, and the consumer is likely to explode, incinerating brand loyalty and future business for all parties involved.Dealerscope polled OEM warranty and extended service plan (ESP) administrators on common consumer complaints with the service repair experience and asked the companies what

The Art of Selling
October 1, 2002

Eight Decades of Advertising and Merchandising Consumer Electronics By Joe Paone and Collin Keefe You could say consumer electronics and appliance advertising and merchandising has been all about windows these last 80 years. Store windows stand as the ultimate synthesis of advertising and merchandising, attracting customers into the store and delivering marketing messages (advertising) while promoting and displaying products on the retail premises (merchandising). The windows of the 1940s were those of the family-owned independent dealers, stalwarts of Main Street, anchors in the commercial districts of downtown U.S.A. The windows of the late 1950s began to look more global, as Japanese manufacturers entered the

Advertiser Index
April 1, 2001

Company Page # Active Light, Inc. 10, 36 AIG 15 Alpine Electronics of America 29 Audio Authority 36 Audiovox 11 Brother 33 Danby Products Limited 35 DSI Systems, Inc. 25 E Preview Corp. 36 Electrograph Systems Inc. 36 Fedco Electronics International 24 Forbes Magazines 13 Frigidaire 37 Here2Fix 23 Kinyo 2 Millennium 26 Mitsubishi 19 National Electronics Warranty 21 Panasonic 27 39 Sharp Electronics 5 8 SyberSay 7 Warrantech 17 Zenith Corp. 40 XM Satelllite Radio 9

Selling Extended Service Plans Online
April 1, 2001

Still Looking for AnswersBy Tatyana SinioukovAlthough retailers are slow to realize the benefits of selling extended service plans online and they haven't yet penned down the online marketing strategy for the ESPs that works, the Internet did make the sales of ESPs more customer-focused. And, despite the gloomy economic forecast, ESP providers predict an increase in online sales. So how has the Internet changed warranty sales and logistics for the consumer electronics market? "The Internet serves two purposes. One is e-commerce, another is to provide a wealth of information," said Kharl Mena, vice president of new business development, Warrantech. "Today, with more people

Editorial Index
April 1, 2001

Company Web Site Page# AIG Warranty 22 Aon Warranty Group 22 Asko 36 Audiovox Communications 24 Avanti 36 CEA 10, 32 Canon 12 Cobra 24 DTS Entertainment 26 Dynasty Range 34 eBrain Market Research 10, 32 Equator 34, 36 Frigidaire 36 Gaggenau 34 GE Appliances 34, 36 Handspring 8 Here2Fix Inc. 22 Hitachi 12 Imaging Science Foundation 14 Jenn-Air 34 JVC 12 Kenmore 34 Kenwood Communications 24 Kinyo 8 Marvel Industries 36 Maytag 36 MERA 27, 32 Midland 24 Millennium 8 Motorola 24 Naneu 8 NECO 20 NEW. 22 Panasonic 12 PARA 18 8 Samsung 12 Sencore 14 Service Net 22 Sharp 12 Sirius Satellite Radio 28, 30 Sony 12 Thermador 34 Thomson 12 Topaz3 24 U-Line Corp. 36 VAC Service Corp. 22 Valley Entertainment 26 Viking Range 34 22 Whirlpool 36 Wireless Marketing 24 Wolf Appliances 34 XM Satellite Radio 28, 31

Advertising Index
March 1, 2001

Company Page # Active Light, Inc. 12, 53 AIG 21 Audio Authority 53 Audiovox 13 D&H Distributing Co. 37 DTS 17 Danby 31 DSI Systems, Inc. 22-23, 53 E Preview Corp. 53 E3 29 Fedco Electronics International 48 Forbes Magazine 49 Here 2 Fix 25 Hughes Network Systems 11 JVC Corp. of America 18-19 Kinyo 6-7 Konka 35 Mitsubishi Consumer Electronics of America 2 Naneu 47 Panasonic Corp. 45 Insert, 55 Sanyo Energy Corp. 51 Sony 14-15, 4 39 SyberSay 33 Tech Media 43 Thomson Consumer Electronics 27 Warrantech 9 Wholesale Innovations 20 Zenith Corp. 56