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Warranty connection to salesQuestion Can a warranty program benefit my small business?
Answer Absolutely. A warranty program is an excellent addition to any business model, because it can offer at least five benefits:
- A warranty is often seen by prospective customers as added value. - A warranty can support higher pricing and/or higher unit sales. - A warranty should strengthen the appearance of quality and longevity of a product, since you're effectively telling the customer that you believe in your product enough to stand behind it. - A warranty offers a formal method for maintaining customer satisfaction in cases of claims. - Progressive companies also use warranty programs to track product reliability and guide their quality improvement programs.
Brain Trust contributor:
Author of Finance for Non-Financial Managers
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