AIG

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 RedtagBiz.com 39 Sharp Electronics 5 SureSource.com 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 aig.com 22 Aon Warranty Group aon.com 22 Asko askousa.com 36 Audiovox Communications audiovox.com 24 Avanti avantiproducts.com 36 CEA ce.org 10, 32 Canon canon.com 12 Cobra cobraelectronics.com 24 DTS Entertainment dtsentertainment.com 26 Dynasty Range dynastyrange.com 34 eBrain Market Research ebrain.com 10, 32 Equator equatorappliances.com 34, 36 Frigidaire frigidaire.com 36 Gaggenau gaggenau.com 34 GE Appliances geappliances.com 34, 36 Handspring handspring.com 8 Here2Fix Inc. here2fix.com 22 Hitachi hitachi.com 12 Imaging Science Foundation imagingscience.com 14 Jenn-Air jennair.com 34 JVC jvc.com 12 Kenmore kenmore.com 34 Kenwood Communications kenwood.net 24 Kinyo kinyo.com 8 Marvel Industries marvelindustries.com 36 Maytag maytag.com 36 MERA merausa.org 27, 32 Midland midlandradio.com 24 Millennium millenniumbatteries.com 8 Motorola motorola.com 24 Naneu naneu.com 8 NECO necoalliance.org 20 NEW. newcorp.com 22 Panasonic panasonic.com 12 PARA paralink.org 18 RedtagBiz.com redtagbiz.com 8 Samsung samsung.com 12 Sencore sencore.com 14 Service Net servicenet.com 22 Sharp sharpelectronics.com 12 Sirius Satellite Radio siriusradio.com 28, 30 Sony sony.com 12 Thermador thermador.com 34 Thomson rca.com 12 Topaz3 topaz3.com 24 U-Line Corp. u-line.com 36 VAC Service Corp. vacservice.com 22 Valley Entertainment valley-entertainment.com 26 Viking Range vikingrange.com 34 WarrantyNet.com warrantynet.com 22 Whirlpool whirlpool.com 36 Wireless Marketing wirelessmarketing.com 24 Wolf Appliances subzero.com 34 XM Satellite Radio xmradio.com 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 RedTagBiz.com Insert, 55 Sanyo Energy Corp. 51 Sony 14-15, 4 SureSource.com 39 SyberSay 33 Tech Media 43 Thomson Consumer Electronics 27 Warrantech 9 Wholesale Innovations 20 Zenith Corp. 56