Here at JB Warranties, it’s no secret that we’re major advocates for purchasing a reliable extended warranty to protect customers’ equipment, their homes, and, most importantly, their peace of mind. However, we’ve also served as in-field technicians and we understand that sometimes, upselling a customer on an extended warranty coverage after an already-expensive system installation can be tricky.
We’re here today to help you navigate both the pros of purchasing an extended warranty and the common drawbacks—so when it’s time to upsell a customer on a warranty, you’re equipped with the tools of the trade. Keep reading to discover why an extended warranty can be a customer’s most beneficial investment, as well as how to handle common objections to ultimately close more sales.
What is an Extended Warranty?
An extended warranty is a form of added protection that can be purchased by customers for their recently installed HVAC or plumbing appliances and systems. Not to be confused with original equipment manufacturer (OEM) warranties that come in part with a new unit, extended warranty plans work to enhance existing OEM coverage with more well-rounded protections and cost savings.
For example, OEM warranties typically offer a limited coverage timeline and will only reimburse customers for parts expenses and not technician labor costs. With an extended warranty add-on, customers can protect themselves from unexpected costs for up to 10 years after purchase and be reimbursed for both parts and labor costs in the event of unexpected breakdowns and repairs.
For even further protection, many contractors enhance their extended warranty offerings with elements like maintenance plans and service contracts for system components. These types of warranty combinations help customers remain compliant with the terms and conditions of their extended warranty while also ensuring ongoing optimal system performance year after year.
The Pros of Purchasing an Extended Home AC Warranty
While we’ve already shared the many business advantages HVAC contractors can gain by offering extended warranty services, it’s important to also understand the benefits of these services from a customer’s perspective. To help guide sales efforts and elevate customer success, consider the advantages of purchasing an extended home AC warranty that you can share with homeowners.
1. Peace of Mind
After investing in a new air conditioning unit, the last thing customers want to worry about are unexpected breakdowns and system repairs. Just like how purchasing homeowners insurance protects the entirety of a customer’s home, by purchasing an extended home AC warranty, customers can gain peace of mind and protection against unexpected AC unit troubles. An extended warranty also locks in a reliable, trusted service provider for utmost confidence in the HVAC repairs.
2. Financial Protection
When a customer skips out on an extended warranty and only sticks with the basic OEM warranty, they run the risk of facing unexpected repair costs in the event of a system malfunction later down the line. Because expenses such as labor costs are often not covered under OEM protections, customers can better protect their recent HVAC investment with the purchase of an extended home air conditioning unit warranty. Throughout the extended warranty coverage timespan, customers are guarded against all repair costs, including labor and parts, as well as replacement costs if deemed necessary.
3. Increases Home Value
With the use of a high-quality warranty provider, customers are typically able to transfer their extended home AC warranty to a new owner in the event of a move. Transferable extended warranties increase the value of a home by eliminating costly HVAC repair concerns with prospective buyers, ensuring their new home’s heating and cooling capabilities are safeguarded for years to come. Customers also ultimately receive a greater return on investment (ROI), considering they can tie in the costs of their extended warranty plan into the selling price of their home.
The Cons of Purchasing an Extended Home AC Warranty
As with any sale, you may experience a bit of pushback when attempting to upsell a customer on an extended warranty. If your customers have some objections, it’s important to see the investment from their point of view by understanding the common cons associated with an extended home AC warranty. Here’s a look at potential drawbacks (when not dealing with a quality provider, of course).
1. Steep Up Front Costs
From AC units to heating systems, a new HVAC unit can run homeowners an average bill of anywhere between $5,000 and $12,000. With such an already steep investment required for the new installation, customers often hesitate to add an extended home AC warranty plan out of the concern for additional costs. Likewise, certain warranty providers may offer steep pricing that lacks the necessary coverage customers deem necessary to move forward with the investment.
2. Customers May Face Coverage Limits
As with plan pricing, certain extended home AC warranty providers fall short in the amount of coverage they offer. With some plans holding strict terms and conditions, customers can face frustrating coverage limits on aspects such as the selection of covered brands, reimbursable labor rates, and the timespan of coverage. Some warranty companies may also fail to provide an easy-to-understand breakdown of coverage, prompting even further hesitation among customers when determining whether or not to purchase a plan.
3. Difficult Claims Processes
Even with extensive coverage and affordable plan pricing, many extended warranty providers tend to fall short with their claims filing processes. Between lengthy claims processes, troublesome reimbursement timelines, and poor customer support, contractors and customers can face difficulties when it comes time to use plan benefits. These difficulties could potentially result in a loss of revenue on the contractor's behalf while also inducing negative opinions and frustrations for the customer.
Why a Quality Extended Warranty Provider is a Must
For a contractor, it’s no secret that selling extended warranties—and convincing customers and homeowners to make a purchase—may incur certain hurdles. Fortunately, working alongside a reliable warranty company not only alleviates but can totally eliminate many of the above concerns. Here at JB Warranties, we circumvent the above common drawbacks by offering warranties that:
- Offer some of the most affordable and competitive pricing across the entire HVAC industry.
- Provide fast and easy online claims filing with reimbursements being issued in 30 days or less.
- Cover all major brands and can be purchased up to two years following equipment installation.
As a leading provider of extended HVAC and plumbing equipment warranties, JB Warranties strives to eliminate the concerns commonly associated with add-on protection, as well as enable contractors to scale their monthly sales. From air conditioners and home furnaces to water heaters and heat pumps, contact JB Warranties today to learn more about our selection of warranty plans.
Vice President of Sales at JB Warranties