As consumers, we all expect the products that we buy to come with a reasonable lifespan. In a world where it is not uncommon for the average person to rely on a smartphone worth hundreds of dollars, it is essential that consumers feel confident that the products they purchase are durable, and that if they develop faults they can be replaced without hassle. From the perspective of the businesses themselves, anything that they can do to inspire confidence and trust in consumers is of enormous value.
Product warranties benefit both businesses and customers. They raise customer opinion of the business and provide a clever and simple way for a business to appeal to customers over their competition. However, before you rush to slap together warranty terms to offer your customers, there are some things that you need to consider and be aware of.
Magnuson-Moss Act
Before you go any further, make sure that you have read through the Magnuson-Moss Act. This is a federal law, which sets out certain rules that any business that is offering warranties to their customers must adhere to. Among the requirements set out in this act is the need to inform customers whether the warranty is full or limited, and to clearly offer specific information about the warranty in a way that can be easily understood by any reader.
Check out the best home warranty offers according to this list from warrantyguides.com for an idea of what your warranty offerings should include.
Be Clear About What the Warranty Covers
It is essential that when you are setting out the terms of your warranty you make it as clear as possible exactly what is and isn’t covered. If customers are unclear about precisely what situations are covered by your warranty, not only might you find yourself running afoul of the Magnuson-Moss Act, but you will find that the warranty you are offering provides less of an incentive for your customers to purchase from you over your competitors.
Customers will want to know whether they will have to come to you for repairs, or whether they will have to use another outside vendor. If the warranty will be voided by the misuse of the product or unauthorized modifications, then customers need to know this upfront.
State the Length of the Warranty
Different products will come with different expected lifespans. A smartphone is generally expected to last for a year or two, the length that most phone contracts last for, on the other hand, many home appliances are expected to last for several years. The warranty that you offer on your products should be reflective of this and must be stated clearly.
Offer the Option to Extend
By offering your customers the opportunity to extend their warranty, you are also opening up another revenue stream for your business. Customers will feel more secure and if they are on the fence, the ability to extend the warranty may well tip things in your favor.
Product warranties are a fantastic way of enticing customers to buy from your business. They increase confidence among consumers and demonstrate confidence in your own business.
