I need advice/tips on how to sell more warrenties...

[Comp625]

I just got a job at Staples and started working a couple weeks ago. I can sell most products but I just can't sell warrenties. Our warrenty basically goes like this: if you are still under warrenty and say you bought the warrenty with a printer, you can bring in the printer down the road and say it's broken. We'll give you a full refund for what you paid for the printer (no depreciation) on a Staples Cash Card.

Anyways, I can't sell these if my life depended on it. I've sold 1 warrenty and I've been working here for a couple weeks now. Granted, I'm new but upper management is pushing me to sell these things since Staples lives and breathes these things.

The reason management is so adament about selling warrenties is because products now only come branded with a limited warrenty. So to still be in competition with other stores (such as OfficeMax), we have to slash prices to as low as they can be. Basically each piece of electronic we sell, we break even. The warrenties is where we make all the money.

So can you former/current sales associates give me some tips or advice on selling these things? Perhaps recommend me to read a website or read a book about this? I'm frustrated and if you read my other post, my hours just got cut (probably due from lack of performance). Sigh...

 

[Cyco]

You could start off by spelling warranties correctly.

 

[Comp625]

Ah yeah it's been a long day. They are right...when you believe in something, you tend to sell it better. I don't care for warranties either way...I usually don't buy em when I get electronic stuff. So I dunno...

 

[masterxfob]

it's really tough to sell warranties when most people know they're not worth it. so my advice to you is to find another job if your manager gives you crap about it.

 

[UsandThem]

The reason management is so adament about selling warrenties is because products now only come branded with a limited warrenty

No, the reason the are so adament about you selling them is because they make loads of money off of them.

Also, when I was in sales (appliance sales) I couldn't sell them either. I just really never believed in them, so I guess it showed when I presented them. I just never could use "scare tactics" to try to get people to get them. I mean somebody would come in to buy a $500.00 junk fridge that was in our ad (which I made no money off of if I sold), so I would spend an hour on why a $1000.00 fridge was so much better. Better parts, better quality, and so forth.

Then at the end I would have to say "By the way, you should spend another $150.00 for a warranty that you have a 99.9% chance that you will never use".

The "extended warranty wars" are out of control. They try to sell you warranties on everything now, not just expensive items.

 

[Zenmervolt]

Selling more warranties is easy; just find dumber customers.

I agree that they're out of contol with extended warranties, I had to buy a Financial Calculator for a class (required, apparantly my TI-85 and my Scientific calculator aren't good enough) and the guy at the store tried to sell me an extended warranty on a $30 calculator.

ZV

 

[notfred]

Shut up damn annoying warranty guy. When you say "Do you want the extended warranty?" I say "no." and I mean "hell NO. Don't even TRY to ask me again."

So, when I say I don't want your POS rip-off warranty, shut up about it!

:|

I hate that annoying "you sure, what if you lose it? How about if a horse steps on it? Maybe your cousin will use it as a frisbee?" NO I DONT WANT A WARRANTY.

 

[KingNothing]

Heh, you've got gold to offer these customers with an offer like that if Staples policy is the same as CompUSA. Here's what you say, and you can tell me if it's true or not.

If you buy this 2-year warranty for $Y, and this model of X is discontinued by the manufacturer, when you bring your X back to the store, we'll give you a credit for the purchase price towards a new X. Therefore, for $Y now, you can get a better X in 2 years.

 

[Comp625]

I like your idea KingNothing. You basically eliminate the part about how the product has to be damaged and just emphasize that it's a trade-in offer.

The funny thing is, that is exactly what we do. We take back old products (such as printers), don't even see if they work or not, we just ship it back to the manufacturer. The manufacturer then melts the printers and recycles it to make new printers.

 

[KingNothing]

Credit goes to the CompUSA lackey who sold me a $80 2-year warranty on my Kodak DC4800. Which I then pricematched and dropped $200 off the price. Oooooh...I can't wait for May. Expect a thread from me in late April on what the best digicam to buy from CompUSA is.

 

[AlienCraft]

Originally posted by: KingNothing
Heh, you've got gold to offer these customers with an offer like that if Staples policy is the same as CompUSA. Here's what you say, and you can tell me if it's true or not.

If you buy this 2-year warranty for $Y, and this model of X is discontinued by the manufacturer, when you bring your X back to the store, we'll give you a credit for the purchase price towards a new X. Therefore, for $Y now, you can get a better X in 2 years.

And make sure to point out when the Manufacturers Warranty runs out. Also mention that if they're paying cash or check they don't get the benefits that a Credit card customer might get (depending on Card used).
Features and benefits is what sells it.

 

[everman]

I hate it when sales people offer me warrenties (no offense ) it's just plain annoying. If I want an extended warrenty I'll ask for it.

 

[Comp625]

Originally posted by: everman
I hate it when sales people offer me warrenties (no offense ) it's just plain annoying. If I want an extended warrenty I'll ask for it.

The thing is, our warrenty is legitimate. It's more of like a trade-in policy where you get a full refund (albeit in the form of store credit). We no longer do in-house servicing. Other stores' warrenties are basically in-house headaches...whereas ours is hassle-free.

 

[Ryan]

I sell warranties at my job (Gateway Country). I always just tell people what it will cost them to have the computer looked at if it is out of warranty, and they usually justifies the cost for them

 

[ElFenix]

Originally posted by: notfred
Shut up damn annoying warranty guy. When you say "Do you want the extended warranty?" I say "no." and I mean "hell NO. Don't even TRY to ask me again."

So, when I say I don't want your POS rip-off warranty, shut up about it!

:|

I hate that annoying "you sure, what if you lose it? How about if a horse steps on it? Maybe your cousin will use it as a frisbee?" NO I DONT WANT A WARRANTY.

thats not a good sales strategy at all... "do you want this"

see, the problem with most sorts of sales jobs is figuring out what the customer's needs are, then positioning a product based on those needs, telling them why it suits their needs. coming out of the blue with "do you want an extended warranty" is bad, it doesn't even make the customer think that they might actually have some use for the thing.

 

[NogginBoink]

Comp, if you enjoy working there, then find the best salesman on the floor and ask that person for help selling warranties.

If you see a career for yourself in sales, go to the bookstore and pick up a book on salesmanship. It could pay for itself many, many times over.

Or, get a library card for absolutely free and check out a book about salesmanship.

 

[freebee]

Staples is also an authorized HP/compaq service center. Remember this when offering both the printer/pda kits. Good way to pad the numbers as the kits go for 49, only a bit more than just a cable. Obviously no more spiffs, but SM get pissy when your ESPs fall below 2%.

I don't actually trust the carry-in warranties and like to push the onsite. The laptop screen breakage at 349 is incredible.....but I've had 2 people by them after they broke their screens and were charged 700 by compaq to fix. But most of the time you can get away with regular onsite (not laptop onsite) unless you wanna pad the numbers.

PRPs are easy. Since it really is a no-hassle money back guarentee. If the fw or anandtech people found out about the true extent of how lenient it was with replacement, it would be abused the hell out of. Since they don't require you send the old one back....most people actually just get new ones and resell.

Warranties are a mix blessing. The PRPs are a no-brainer....i'm suprised it doesn't get abused. And that many people refuse it....but the extended warranties on computers, laptops (the real big dollar ones) i think are more for company profit than consumer benefit.
As a full time associate, you should be selling in the grand a week range idealy....but 4-5 hundred average is more realistic

 

[Comp625]

Yeesh freebee. I've worked at max 13.5 hours per week and during my tenure as a Sales Associate in the BM department (1 month), I've only sold 1 warrenty. That was on Wednesday though. I was VERY close to selling 1 Friday and Monday night. I got close again tonight but the guy said he would come back tommorow and buy a certain printer (HP 2210) w/ warrenty. Basically, I did all the work plugging the warranty but another associate tommorow would get credit for it (since I don't work tommorow). I guess I need to revise the way I present the warrenty plans to the customer.

By the way freebee, can you recommend any specific book? I do have a library card and I visit the library often.

 

[NogginBoink]

Tom Hopkins is a pretty good author. Start there if you have no better tips.

 

[FoBoT]

lie your @ss off

 

[TRCDROM]

I was in sales for many years. Use common sense and creativity to sell them. This holds true for almost everything that is sold. Unless you are the lowest price or have the best product there will always be someone (especially online) that has a lower price or another manufcaturer that has a better product.

The idea of selling it as a trade in policy is extremely creative and should have a good chance of working.

What I would do is forget about selling warranties (I know you have to push them but when you get a "NO" dont bother going any further) for the inexpensive items. When I spend $30 on a phone I do not want a warranty for $7 (23% of the cost) If the phone lasts through the manufacturers warranty (usually 1 year) I am happy. I hope to get a few more years on top of that (which you usually do). If I dont I would take the $7 from the warranty I did not buy and put it toward a new phone.

The bigger items should be easier. My IPAQ was a simple sale of a warranty (although not from the store I bought it from) I carry it around all of the time. I knew that I was, sooner or later, going to jostle it, bump it, drop it, leave it in a cold car (which i did and froze the screen which then shattered), get dust under the screen, etc.... It cost me nothing to get fixed as opposed to Compaq that wanted $50 just to look at it.

My little 20 inch TV is not getting a warranty. I could buy a new one for $100 (or less) My big TV is definately getting one. It is too heavy to lift. Just to have someone come to your house to look at it costs $100. I just bought a five year warranty for $200. If the thing does not break once I lost $200. If it breaks just once I come close to breaking even depending on what is wrong. If it breaks twice I am ahead of the game. It is a gamble.

Sell the warranties on things that are likely to break (becuase they are carried around or pounded on - PDA's, notebook computers, cameras, etc...), sell the warranties on items that are hard to bring in for repair (things that are heavy or have tons of cables attached - computers, large monitors, large printers) This makes even more sense if you are not selling it to a computer savvy person or somebody that looks like they want to have to bring items in themselves for reapir and would rather make a phone call. Look at Dell or Gateway. One of there biggest selling points is the onsite warranty. I know a ton of people that bought these machines. They go through the phone BS and then somebody is by their home. For non-technical people this is amazing. These people do not know how to check if a cable came loose and of a hard drive, floppy or cdrom goes bad then this is really a godsend because not only do they get the item but they have somebody come to their house and fix it. To these people opeing the computer is the same as doing brain surgery.

Dont bother selling warranties on the small priced items or to people who are strictly concerned about cost and don't bother selling these things to people who are technically savvy unless you are selling based on one of the two issues pointed out above.

I am extremly technical (MCSE, MCP+I, MCT, CUE, A+, Network+, Security+, CISSP, CCSA, and more) and I understand that they are not always work it but the gamble, based on price or the warranty, on the two types of items above is sometimes worth it for me.

PS. My IPAQ has been in the shop three times in the past three years, my 27" TV has been fixed twice in the past 5 years and I had a palm pilot that I had an extended warranty on and when the screen started to get lines on it I was given a new one. This new one ended up on ebay. All of these warranties were very much worth the cost

 

[RossMAN]

Here's how a Staples assistant store manager convinced me to buy TWO EXTENDED WARRANTIES on computer peripherals which cost under $100.

Ross, your Epson printer only has a 1 year manufacturer's warranty ... we have a 2 year extended warranty available for $10, if anything breaks, we'll give you a Staples cash card for the purchased value ... here's where he convinced me ... I asked so how would I bring my broken printer in for service? Bring it here, bring it to a service center, mail it in? Since it was under $100 he said you just register the warranty, then after 1 year but before 2 years call them up and say my printer is broken and you'll be mailed a $100 Staples gift card. So I bought extended warranties on a CD-RW and printer, that 1 year is coming up really soon

 

[Siddhartha]

When a salesperson tries to sell me warranty I wonder if I am making a poor choice with the product I am buying. I start to think that something must be wrong with it. Obviously the store has a low opinion of the product's quality.

 

[StageLeft]

You can't sell them because people are increasingly becoming aware of the fact that most extended warranties are a waste of money.

 

[DJP]

At BB, they tried to convince me that the battery to my digital camera would be included in the 4 year psp. They said any time I want a new battery (not charging well in a few years which is likely) that I could get it replaced free. I highly doubt that is true but that would cover most of the cost of the warranty.

Usually, pushers of these plans say things like "we just saw one in the other day with a broken [whatever]-- it's really worth having the warranty" and that suckers a lot of people in (which I always reply with "oh well, then I'm not buying it if it's such poor quality" and then they backpedal saying that yes it probably won't break)

The only thing I'd get a psp on is a pda because the screen repair costs are very high and the screens are very fragile (I've broken 3 pda screens in the last 3 years from dropping the pda/having someone else drop my pda/falling off the table) If it covers a pda screen and wasn't too expensive I'd get it. Other than that though, a lot of people are much better off taking the money they'd spend on a psp and save it for the replacement item should the thing break.