Increase Sales – Use of an extended warranty program can increase machine sales as well as parts and service sales.
Gain Competitive Advantage – Extended warranty can provide a competitive advantage in bid situations.
Increase Margins – Parts and Service margins are increased in that the warranty reimburses full retail parts and labor cost.
Retain Account Control – Parts and Service volumes are increased in that warranty work is done by the Dealer/Manufacturer who sold the piece of equipment unless the machine has left their service territory.