What They Say
The author points out that retailers will be impacted by Covid which will reduce ‘footfall’ and the number of transactions. They really need to look at all aspects of their businesses including warranty. The author explains how the premiums are calculated for extended warranties (not particularly for CE or displays).
What We Think
Dealing well with warranty is important and I remember the days when Dixons in the UK were getting the vast majority of their profits from the sale of extended warranties. I remember saying to a particularly pushy sales assistant that if he mentioned extended warranties again, I would walk out of the shop! A friend from Sony also moved from product management, years ago, to set up an extended warranty scheme. Although he enjoyed it less than product marketing, he was pleased that at the time, he actually contributed a lot more to profit than he did when selling products. (BR)
