Selling an extended warranty can be very challenging. According to Retail Sales Training, consumer groups often advise shoppers not to purchase extended warranties, citing the profit margins for extended warranties are extremely high. Therefore, selling wary customers an extended warranty, especially if they've done their homework on the product and have seen consumer reports advising them not to purchase a warranty, can prove fruitless. You can sell more extended warranties by integrating the warranty into the overall presentation of the product, along with a few other sales tactics.
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Both seller and consumer often view extended warranties as a separate product from the principle merchandise. Rather than viewing and selling the extended warranty separately, integrate the warranty into your presentation of the principle merchandise. When discussing the benefits of the merchandise, mention the extended warranty and the variety of coverage options available under the warranty. Do not mention the warranty as an afterthought and mention the warranty to every customer, whether you think they will be interested or not.
Sales staff tend to speak about a product from a memorised list of features. While it may be easier to speak about a product that you've memorised quickly and in a list-like format, it may hurt your sales. Create a dialogue with the consumer, asking him questions about what he is looking for in a product. When he answers you, respond to his answers with a feature of the product that aligns with his needs. Ask a question about the longevity and reliability of the product. In this way, you're opening up an opportunity to speak about the extended warranty. Know the terms of the extended warranty, as many consumers will want specifics, especially the time frame and process by which to inspect and replace damaged or defective products.
When you mention the warranty, you should be prepared for excuses and reasons why the consumer may not want or need a warranty. Many consumers will resist an extended warranty, even for the most expensive products. Plan for excuses and think of ways that you can respectfully and creatively show a customer how and why a warranty may be in his best interest, especially with big-ticket items that will be extremely expensive to replace or repair without a warranty.
If you've mentioned the warranty and given all the information you can about it, allow the consumer to make that decision. Being pushy or overbearing will only alienate a customer. If the customer can purchase the warranty later on, let her know she can always change her mind. If she cannot purchase the warranty after the fact, share this information with her at the time of purchase.
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