When consumers purchase products, they’re looking for reassurance that they are making the right decision. They have to know that what they’re spending on would last and if it doesn’t, they could contact the seller for support.
This is where product warranties are useful. But before just providing warranties on all products that you sell, you need to take the necessary steps when creating your product warranties. Below are some helpful guidelines to start you off.
Make it Clear to Consumers What the Warranty Covers and What it Doesn’t
You need to be very specific when spelling out what your warranty covers and what it doesn’t. For instance, in the event your product malfunctions, you need to clearly state whether you’ll pay for the repair and labor.
How could customers contact you when they have an issue with the product? Can customers have their products repaired by other vendors or not? Specify that you won’t be covering customer modifications or misuse of your products as well.
Follow the Magnuson-Moss Act Guidelines
When creating your product warranties, it is imperative that they’re in complete compliance with the federal laws under the Magnuson-Moss Act. As a seller or warrantor, you should state whether your warranty is limited or full, inform customers about specific details regarding the warranty in a document that’s easy to understand.
And you should offer warranties before the customer buys a product. It’s also best practice to include product warranties to all customers, online or in-store.
Specify the Amount of Time a Product Will Be Covered
Your customers should how much time they have to request for a repair, exchange or return of your product. You need to explicitly state how long you can be held responsible for the products you sell. For big-ticket items such as appliances built to last for years, you might consider offering longer warranty times.
For instance, you may offer a 45-day warranty on a clock radio, but provide a one-year warranty on a washing machine. Remember that having longer warrant times could also give you an edge over your competitors.
Create a Team That Will Manage Warranty Issues
Customers should be able to get a hold of someone in your company if they have a complaint or want to return an item. You should also give customers a choice whether to return products in-store or through delivery, whenever applicable.
Additionally, you need to have a warranty management system in place and trained customer service personnel to manage customer concerns and ensure their satisfaction.
Offer Customers the Choice to Extend Their Warranties
Customers will a lot more comfortable buying expensive products if you give them the option to extend their product warranty. When you offer extended product warranties at an additional cost, chances are that customers won’t even use them, and you’ll increase profits.
Done right, products warranties can really offer excellent benefits to you and your customers because they set clear expectations from both sides, safeguard all parties involved, encourage repeat sales, and give your business a leg up over the competition.