Let’s be honest, everyone loves a good deal. We want more and more for less and less. We want free things! Probably the fastest, easiest way of attracting people to purchase your product or service is a giveaway, but that’s not always possible or practical depending on your industry, your business size, and your current financial footing.
This is the reality for many independent stores looking to offer an incentive to get more customers through the door, but can’t really afford the costs that will come with it. In a perfect world, it would be amazing to be able to offer a full lifetime warranty for all repairs, but let’s face it, it’s not realistic in most situations.
There are, however, a few ways you can still offer something interesting. Here are three different warranty options you might consider:
Offer a Partial Discount on the Warranty Repair
Offer a certain percentage off of the second repair. For example, a happy customer leaves your store after a screen replacement. A few weeks later the customer drops the phone again and cracks the screen. With this warranty, the customer can return to your store for a discounted repair. Choose an amount you’re comfortable with and matches your business size. You can also choose different percentages based on the device. More expensive repairs can have lower discounts than cheaper ones – use the part cost and repair time in consideration to come up with a final number. Anywhere from 25% – 50% should grab people’s attention.
Labor Warranty – Waive the Labor Cost on the Warranty Repair
This is a great offer especially for independent repair stores that don’t have employees. Similar to the above scenario, a customer who breaks a recently repaired phone can return to your store for a discounted repair, but in this situation, the customer pays the full price for the part and the cost of the labor is waived. Yes, you are giving your time for free, but at least you’re not losing any money on the part itself. Structuring a warranty this way can make it more comfortable for an owner to provide a longer warranty period, maybe 180 days or even a year!
Full Warranty (Waived Labor and Parts Cost)
Perhaps you can afford a few full warranty repairs. In this case, you won’t charge your customer a penny for the repair – so you’ll definitely come out of pocket. Typically this option probably only makes sense with a short warranty period. A customer leaves your store after a screen replacement, and then drops the newly replaced phone and cracks the screen again. A full warranty means you provide a new screen AND the labor free of charge. For obvious reasons, this offer doesn’t make sense for a longer warranty period. 1 to 3 months is a little more realistic.
In the end, choose an offer that is compatible with your business and goals. Sit down and do the math of all costs so whatever you decide to go with, will ultimately open doors to new business without causing a whole on your profits.
Do you offer any of these warranties at your store? Do you have a different idea? Tell us in the comments below!