 | Positioning is Key
When positioning a warranty sale to a customer, an effective tactic is to ask the customer what they would pay for it with absolutely ZERO warranty attached to it. Normally the answer is less than half of what the unit is worth...It’s quite simple to turn this around and position the extended service contract at this point, comparing the price of the service contract to the price difference they had quoted for the product originally. |
| Customers don’t like “Extended Warranties”.
If you think about it, neither do you. The term has such a bad reputation these days that it is counter productive to label them as such. A far better way to present them is as a 'service guarantee', 'service contract' or 'Performance Protection Plan'. People want to feel safe – they want to believe that what they are buying will last them a long time. On the other side - for those that want the newest gimmick once every 3 years or so, the warranty is a great way to have a chance of getting a subsidized or free replacement product should their original fail. There’s something in it for everyone. |
| At the point of sale it is useful to mention what is covered by the manufacturer, and why the extended coverage is beneficial. Know your features and benefi ts. If you have to read them to the customer you are probably going to loose that sale. -Mark Amatiello, Maytag Store - Newmarket, ON |
| Purchase Options
If a customer is not going to purchase the warranty at the point of sale, mention to them that they have the opportunity to purchase it up to a certain date after the date of purchase, and that it is cheaper to purchase it through you than the manufacturer. Ask them if they would mind you giving them a call in a few months when their manufacturers warranty is about to run out. Keep track of the customers that say yes. You may get more sales after the purchase date. -Mark Amatiello, Maytag Store - Newmarket, ON |
| Product Belief
Belief in a product and its manufacturer needs to be a big part of a company’s corporate culture from the top down in order to enjoy success on the sales floor. It makes sense - you are more likely, as a salesperson, to sell the product that you know and trust so that your customer will continue to shop from you. Repeat customers are big business! You are more likely as a manager to push your salespeople to sell a product for the same reasons.
Either way if you don’t know enough about a product, you can’t believe in it. If you don’t believe in it, you won’t sell it. But if you and your staff support and believe in the program success will come as a matter of course.
|
| | |
| | |
