Vision - November/December 2008 - (Page 29)

Friendly g hancin En h he Tec with t ce perien ories Ex Access rvice and Sens Pla n the fast food world, adding onto an order is usually a matter of asking, “Do you want fries with that?” In the consumer electronics industry, introducing accessories and service plans can be a much more complex pitch. But during economic dry spells and recessions, ﬁnding a way to add on these goods and services to a single product package could mean the difference between being in the red—or the black. Add-ons are a win-win for retailers and consumers alike. Retailers can improve their bottom lines with extra revenue from accessories and service plans, says Steve Williams, senior vice president at Warrantech, a consumer product services company in Bedford, TX. Added revenue from these accessories and warranties also can make more money available for advertising and promotions designed to entice customers into a store or onto an e-commerce site with specials, sales and new product inventory. “Consumers benefit by eliminating future replacement or repair expenses during the covered term,” says Bruce Saulnier, president of AMT Warranty Corp. in Ramsay, NJ. And while service plans and accessories may require different pitches and merchandising, they both are similar in that they generally enhance the experience for all parties. By Natalie Hope McDonald Illustration by Matthew Vincent I “Many extended service plans (ESPs) help consumers get more enjoyment out of their product, helping them use the product by providing hassle-free product support and troubleshooting 24-hours a day, online or over the phone,” commented Joe Romano, NEW Customer Service Company’s senior vice president of client development. “Retailers need to introduce the service plans to all customers,” says Williams. “That’s the number one rule.” The scope of plans can include anything from repair and replacement of a product to support services for home networking. “The LCD ﬂat-panel business is deﬁnitely leading the service plan business right now,” Williams says, thanks, in part, to consumers’ concerns about the relatively new technology. Portable products are also well-suited to service plans, like MP3 players, laptop computers, PDAs and cell phones. “For these types of items, we recommend a Date of Purchase (DOP) plan with Accidental Damage from Handling (ADH),” explains Saulnier. “For example, if you cannot be without the use of an item, like a PDA, a consumer would want to purchase an ESP that offers product replacement rather than repair.” Saulnier says AMT has worked closely with OEM manufacturers to create OEM and aftermarket warranty programs for both existing and emerging technology. “While we traditionally have provided custom programs that ﬁt an individual client’s needs, we have identiﬁed certain product categories for smaller retailers that have had an interest in a turnkey program that doesn’t require a signiﬁcant volume commitment,” he says. November/December 2008 www.CE.org 29 http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - November/December 2008

Vision - November/December 2008 Contents Shapiro's Spectrum In this Issue The Economist C4 Trends Going Global Visionary CES Unveiled Eco-Intelligence Is Vital in a Sustainable Global Market XGP— A Game Changer Enhancing the Tech Experience High-Definition Decade Public-Private Partnerships CEA Newsline Tech Speak Tech Policy Eye on Business Market Insider Just the Stats

Vision - November/December 2008

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