What You Need to Know Before Starting a Warranty Program

When customers are putting up a lot of their money for a product, they want some kind of assurance that they are making a wise decision. Operating a warranty program is an excellent way of setting yourself apart from the competition and offering your customers peace of mind.

Among the other benefits to both businesses and customers of a warranty program are the fact that they are a great way of building trust between you and your customers. Instigating a warranty program shows them that you want them to have the best experience possible with their purchase and to that end you undertake to replace it if it breaks.

Warranties don’t just protect the customer’s investment in the product itself, they also allow businesses to clearly state their policies and intentions so that they are protected from frivolous claims.

If customers have the choice between two or more retailers when looking to purchase an item, and only one of those retailers offers warranty they will have a clear advantage over the competition.

Before you enact a warranty program however there are some things which you need to keep in mind, this article will give an overview of what is required.

Magnuson-Moss Act

You need to make sure that you know what the Magnuson-Moss Act is and how it applies to you. The act is a piece of federal legislation that must be adhered to by any business that offers a warranty program. The act states that the business must inform the customer whether the warranty is full or limited, all the relevant information about the warranty policy must be expressed clearly and presented in a single, easy-to-understand document.

If you fall afoul of the Magnuson-Moss Act, then you could find yourself facing legal troubles and potentially fines and other penalties. It might be worth hiring a lawyer to read over your policy and ensure that it meets all the necessary requirements under the act.

Be Specific

It is important that make your warranty policy as clear and concise as possible. Make sure that you are very specific when setting out the terms and conditions so that there can’t be any ambiguity or misinterpretations of the policy.

Explain to customers whether, in the event of a product malfunction, you will pay for new parts and labor, or whether any excess fees apply. For example, if the excess is $50 then customers will have to pay the first $50 of any repair with the business paying any costs over this.

If you advertise your warranty online, then look to warrantyguides.com for an example of how to effectively lay this information out on a web page for your customers.

State the Length

Customers need to clearly understand how long the warranty lasts for, if you fail to specify a time limit for the warranty then you will have to honor it indefinitely. Generally, customers will expect longer warranties for items that are supposed to have a long life span, home appliances often fall in to this category.

Enacting a warranty program is an excellent way of making your business more trustworthy, developing relationships with your customers, and setting yourself apart from the competition.

Author: Richard Casteel

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Richard is the chief author of this blog. He worked as a financial advisor in money market form last 10 yrs. His financial sense in Share trading and any other trading is just outstanding. He just shares his knowledge and experience through this blog. You can contact him directly though CFD-Providers.com.

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