Best Practices for Optimizing Extended Labor Warranty Offerings

Add the Extended Labor Warranty as an included item in every proposal and every single replacement order versus adding it as a recommended item. By including the Warranty, it will be priced automatically into your quote, this also allows you to position the warranty as a differentiator for your services.

Your cost for offering an Extended Labor Warranty to a customer is $680. You have the flexibility to mark this up by up to 10%, with a suggested retail price of $750. Ensure that your pricing strategy is transparent to the customer and reflects the value of the service provided.

Use the 10% markup to your advantage by potentially offering promotions or discounts from the suggested retail price when appropriate. This tactic can be particularly effective during competitive bids or special sales events.

When presenting the Extended Labor Warranty, articulate the long-term benefits and the protection it offers. Explain how the $300 parts allowance works and that it aids in covering the costs when performing work on a claim. This transparency can be a key selling point and establishes trust.

In your marketing materials and sales discussions, prominently feature the suggested retail price and the parts allowance. This creates a perception of value and may make the decision easier for the customer.

Reinforce the notion that the Extended Labor Warranty is an investment in the customer’s peace of mind and a commitment to their satisfaction. A customer who sees the long-term benefit is more likely to remain loyal and recommend your services.

For installations involving more than two heads for Ductless systems, inform the customer that a second Extended Labor Warranty will be necessary if installing three or more heads. Ensure this is clearly stated in your proposals to avoid any confusion later.