Retail Observer

RETAILOBSERVER.COM FEBRUARY 2023 54 Y ears ago, a customer on an appliance sales floor asked me, "Would you buy a warranty on this thing even though we're in a recession?" My answer: "Sir, your appliance has no knowledge of the economy, and you'll either be glad you bought the warranty or kicking yourself for not buying it if this unit does need repair." The year was 2009. The economy was experiencing a difficult stretch, and jobs and expendable incomes were hard to come by. Admittedly, my response was a bit snarky, but it was true then and it's still true today. As salespeople, we know the reality of the products we sell – accidents happen to furniture, a certain percentage of appliances will experience breakdowns, and the economy has absolutely nothing to do with it. We turn on the news and hear about inflation, rising costs, unfilled jobs, or as my grandfather puts it, "Hard work and low wages." The economy fluctuates. Consumer confidence rebounds and will do so again, but what should never change is our commitment to earnestly offering a protection plan to every customer who purchases product from our stores. Even if the ticket total begins to creep past the customer's originally stated budget, you should give them the full opportunity to add coverage on their product. The last thing we should do is decide for ourselves that the protection plan is "too expensive" for the customer and neglect to offer it. Should your pitch change based on economic stresses? Maybe you should put more emphasis on the financial benefits of having repairs or replacements covered. In easier economic times, perhaps you should focus more on the benefit of having any extra features covered by protection plans. When we train salespeople on adding protection plans, we start by asking, "Is it bad if a customer buys a warranty and never has to use it?" The obvious answer is "No, it means their product worked great." The follow-up question is: "Is it bad if a customer buys a warranty and does experience a breakdown, but then is covered by the protection plan?" Again, the obvious answer is, "No, they are very glad they bought it." What we've learned is that in the overwhelming majority of scenarios, adding coverage is a great choice for a customer. These facts don't change in any economy. Ask these questions in your next sales meeting when you're discussing warranty attachment with your sales staff. I think you'll find that it isn't consumer confidence that affects warranty attachment rates, rather it's the salesperson's confidence. For more tips on training to sell and manage protection plans, visit the Nationwide Learning Academy on Membernet. Chad Burris Warranty Trends Chad Burris, Director of Product Protection Nationwide Marketing Group TIPS FOR PITCHING PROTECTION PLANS IN AN UNCERTAIN ECONOMY RO

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