Selling Replacement Warranties

I have had a request from Robert who works for Staples in the States seeking information on how to sell replacement warranties? My response to him was along these lines -

"In Australia I used to do a lot of work with "Office Works" which has a similar product range to what you sell at Staples.

They had 2 programs - a replacement program for all products below $500 - premium a flat 20% and then a repair or replace program for products over $500 with individual carded pricing.

Overall the pricing at Staples is similar except Office Works operated on a percentage basis where you have a rate card.

Replacement Warranties - we used to sell them at POS (Point of Sales) and on the floor. From my experience they are probably the easiest warranties to sell.

Golden Rules -

• Ask everyone
• Don't prejudge the customer
• Give them the opportunity to buy
• Be yourself
• Be positive
• Believe in the product

Process - (the following is a mixture of processes you could use at POS or floor sales - vary around the lead in for floor sales - it is very important to be yourself and find words you are comfortable with - there should be enough here to give you the intent)

• Greet

Remember to smile - look them in the eye

• Acknowledge/Reaffirm customers purchase

"That's a great printer we sell lots of those"

• Ask a qualifying question

"What happened to your last one?"

• Introduce Warranty

"Has anyone spoken to you about our replacement warranty program?"

"The good news is for only $X (or less than the equivalent of $X per month/week) your printer qualifies for an extra years replacement warranty - in other words if it breaks down in the extended warranty period we will give you a new one"

"Did you know that qualifies for our replacement warranty? In other words for only $X you are protected against breakdown in the next 2 years (manufacturers warranty plus extension) and if you are unlucky enough for it to breakdown we will give you a new one."

"Did you know this qualifies for our wear and tear warranty? If it breaks down in the next 2 years through wear and tear we will give you a new one?"

• Close the Sale

"How does that sound to you?"

"Would you like me to include that with your purchase?"

Objections

• Always clarify the objection by asking a question e.g.

"Why is that?"

"Tell me more?"

"What exactly do you mean?"

"Why is that important to you?"

Or

• Restate the customer's objection back to them in your own words to ensure you have a common understanding, then respond to the objection

Isolate it - " Is that your only concern?"

Example Objection

"It is only $50 if it breaks down I will get a new one!"

• Ask a question

"How long do you expect it to last?" (they often will say something like it will be lucky to last the manufacturer's warranty period)

• Listen to the answer and respond

"Gee, If it did break down I don't know where you would be able to buy a replacement printer for only $X. I know what I would do!"

I hope this helps some of you.