Financing and Extended Warranty

[Fsappo]

You may move this to a better forum, didn't know if it should be Inglenook or DIY

. This is my first ground up build of a Hearth Shop that is integrated with an established HVAC company.

They are used to being able to offer financing and extended warranties. So, any Hearth pros or clients have good/bad stories or recommendations?

I don't recall extended warranties being offered from any of the manufacturers I represented. I am guessing that when I buy something from a big box store and the kid asks "would you like to add this coverage for blah blah" it is done thru a third party. So, thoughts from you folks on that would be appreciated

In regards to financing. I have used GE in the past and American General. I just tried to look up AG and they were a bunch of complaints about them. GE, I am still looking into.

From what I recall on LI, we offered 12 months interest free. It cost us 10%. We averaged 55% during the good years for gross margins, so we would offer it. There was no cost for us for the "standard" financing at 13% or so. But we found that folks willing to pay that rate, especially when things were booming, normally couldn't qualify. With our current business model and climate, we are very far off from a 55% gross margin, so the 10% hit

So, just wondering what you have seen

 

[sportbikerider78]

My general feeling towards warranties, is to avoid them. I research products and buy the best I can afford and skip all warranties. If I think I need one, I don't buy that product.

It is a gamble, but it is not something I have ever regretted.

 

[Fsappo]

Same here. Except for a used SUV I knew my ex wife would abuse, I have never once purchased an extended warranty and only regretted it once with a snowblower. My bosses are asking, so I need to do the research and present the facts.

 

[firefighterjake]

I usually pass on extended warranties ... that said I did purchase one on my wife's new car for two reasons ... the Subaru dealership offered a very good price and the model she chose went through a redesign this year.

 

[Dix]

If your working with an HVAC company, alot of HVAC work has a totally different outlook on warranties (third parties aka from here on in TPA's) than appliance, hardware warranties.

I'll stop from continuing until you can give me some more clarification on what you're looking for as far as a TPA.

 

[Fsappo]

If your working with an HVAC company, alot of HVAC work has a totally different outlook on warranties (third parties aka from here on in TPA's) than appliance, hardware warranties.

I'll stop from continuing until you can give me some more clarification on what you're looking for as far as a TPA.

I'll give a scenario or two:

Customer buys a pellet stove with a 2 year parts and one year labor warranty. My boss wants to know if we can offer a program where the customer can pay X and extend it to 3 years parts and labor, with our company being reimbursed hourly at at least our cost.

Customer buys a propane gas boiler. 10 year pro rated vessel warranty that does not include transport of the boiler. Customer pays x and has it increased to 15 years including all labor, transport and not pro rated.

IMO these are all gambles, like insuring a blackjack hand. House wins. These TPA's would not be offering this if spread out over a million customers it was a break even. Yet, they are still in business, so someones buying

 

[rwhite]

IMO good customer service goes farther than any warranty. It worries me that at the point of sale we are already talking about repair. One example I have is a local appliance store where I bought a cook stove several years ago. 3 months past the manufacturers warranty a circuit board went out. The tech came out and looked at it and said it shouldn't have gone bad. By all rights they could have charged me. But they covered the cost. I have bought every appliance since from that store and they have made more money from me than any warranty they could have sold. I think a good businessman can look at their product and determine if a failure was abuse, age, or poor manufacturing and then charge accordingly. So I think selling a quality product and excellent service are worth far more than warranties.

 

[Dix]

IMO good customer service goes farther than any warranty. It worries me that at the point of sale we are already talking about repair. One example I have is a local appliance store where I bought a cook stove several years ago. 3 months past the manufacturers warranty a circuit board went out. The tech came out and looked at it and said it shouldn't have gone bad. By all rights they could have charged me. But they covered the cost. I have bought every appliance since from that store and they have made more money from me than any warranty they could have sold. I think a good businessman can look at their product and determine if a failure was abuse, age, or poor manufacturing and then charge accordingly. So I think selling a quality product and excellent service are worth far more than warranties.

They probably back dated the DOP to get the manufacturer to cover it Happens alot.. The manufacturer might also have had a warranty extension on the part.

 

[Dix]

I'll give a scenario or two:

Customer buys a pellet stove with a 2 year parts and one year labor warranty. My boss wants to know if we can offer a program where the customer can pay X and extend it to 3 years parts and labor, with our company being reimbursed hourly at at least our cost.

Customer buys a propane gas boiler. 10 year pro rated vessel warranty that does not include transport of the boiler. Customer pays x and has it increased to 15 years including all labor, transport and not pro rated.

IMO these are all gambles, like insuring a blackjack hand. House wins. These TPA's would not be offering this if spread out over a million customers it was a break even. Yet, they are still in business, so someones buying

Sorry for the delay.

For TPA's, check AON, Assurant, Warrantech for starters. They have been around for ever, so they must be making money.

Financing, I can't help you with.

 

[Fsappo]

Thank you, I'll look into those