How to Sell Extended Warranties by hmn57734

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									How to Sell Extended Warranties




           Service Pack Extended Warranties
           Non- Physical Extended Warranties




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Agenda

 Product Definition
 Customer Benefits
 Anticipated Attach Rates
 Target Customer
 Positioning
 Why APC Extended Warranties




                               Critical Power & Cooling Services – APC-MGE - 2007   2
What are Extended Warranties?
 Two types of Extended Warranties
     Service Pack
     Non-Service Pack
 Each offers the same service and benefits to the customer, but
 uses a different delivery mechanism for the entitlement

 Service Pack Extended Warranty
     A physical product that represents a service
     Stocked and sold just as a UPS would be sold
     Used for concurrent sales
     1 or 3 years of coverage beyond the factory warranty

 Non-Physical Extended Warranties
     Non-physical product
     Ordered on a drop ship P.O.
     Used for large orders and non-concurrent sales
     1 or 3 years of coverage beyond the factory warranty



                                                Critical Power & Cooling Services – APC-MGE - 2007   3
                 What are the benefits to my customer?


           Features                                                Benefits
One or Three Years of additional    Provides peace of mind and complete factory warranty protection for up to
   product failure coverage            six years.
Dedicated 24 X 7 Customer Service   Extended Warranty customers are provided with a dedicated toll free
   Support with Toll Free Call-in      number and priority call handling. Calls are handled 24hours a day, 7
   Telephone Number                    days a week by call center professionals.

                                    Extended Warranty customers receive upgraded shipping status, which
Next Business Day Shipment             means, next day shipment of the replacement UPS, battery, or parts.
                                       APC evens pays the return shipping for the used UPS or battery.

                                    E-mail Service Entitlement Certificate provides a detailed record of the
Service Warranty Certificate
                                       service registration, along with the service expiration date.
                                    The One Year protection option offers the lowest cost solution, while the
Warranty Duration Options
                                       Three Year option offers the best value solution.



                                                                              Critical Power & Cooling Services – APC-MGE - 2007   4
                 What should be my Attach Rates?
        Industry standards show us that attach rates for Extended Warranties increase
                        along with the value of the product they cover.

                   KVA Range               Anticipated Attach
                                                  Rate
                                                                                 This is your
         > 500va                                             3%                  sweet spot
         500va – 1500va                                      7%

         1500va – 3000va                                    17%

         3kVA – 8kVA                                        21%

         8kVA – 16kVA                                       27%


If your current attach rate is less than the recommended percentages, there is
                 significant opportunity for increased revenue!

                                                                Critical Power & Cooling Services – APC-MGE - 2007   5
             Who is my target customer?

               IT Customers
               SMB to Enterprise
               Purchasing Single Phase UPSs to support PCs,
               Workstations or Servers
               Who are worried about downtime and continuity of
               service to their internal customers


  Service Pack Extended                      Non-Physical Extended
Warranties are designed for               Warranties should be sold be
                                            Your sales focus will
customers purchasing individual           anytime a customer purchases
or small quantity orders                    on volumes Pack
                                          large Service of entitlements or
  They are only sold                        Extended Warranties
                                          wants to renew an
concurrently                              existing entitlement



                                                        Critical Power & Cooling Services – APC-MGE - 2007   6
Why should I sell extended warranties? Or What’s in it
for me?

  Selling an Extended Warranty is an easy way to add to top
  line revenue and increase your average order size
      1 Year Extended Warranty end user pricing is typically 10-
      12% of the product price – a nice addition to any order

  They offer an opportunity to strengthen your relationship
  with your customer through increased contact during the
  warranty period

  And at expiration, it offers an opportunity to contact the
  customer to offer a renewal or to upsell additional products
  and services




                                             Critical Power & Cooling Services – APC-MGE - 2007   7
Why APC Extended Warranties?

 Warranties from third party providers may be cheaper but
 cannot offer the quality and reliability offered by the
 manufacturer.
     Manufacturer offers factory certified replacement parts, for
     quality parts availability

     As well as a dedicated technical support team that has direct
     access to the engineers that designed the equipment, for
     accurate diagnosis and repair

     And priority access to the Manufacturer supply chain and
     logistics for faster delivery




                                             Critical Power & Cooling Services – APC-MGE - 2007   8
How do I position an Extended Warranty?

 Service is a natural addition to any product sale
 To sell most effectively, should be offered at time of original
 product sale
     Market research shows that the number one reason a customer
     did not purchase an Extended Warranty is that it was not offered
     to them at the time of equipment sale!


 Offers the customer one or three years of additional coverage
 for extended “Peace of Mind”.
 In the unlikely event of a failure, APC will repair or replace at
 no additional cost.
 Batteries will always fail over time. This service covers the cost
 of replacement batteries, plus any other failure that might
 occur. Without an Extended Warranty, these things must be
 paid for separately.



                                                Critical Power & Cooling Services – APC-MGE - 2007   9

								
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