Can I do this? Extended warranty.

[Steve_g]

Hi all,

Unsure if I’m heading down a regulated area.

Say we sell watches, we already offer a 5 year warranty as standard.

I want to offer on some higher margin lines the option to add “accidental damage” to the warranty for 1 year for example.

So at checkout customers would be able to pay an extra £20 for example and covered if they break the watch in the first 12 months of warranty.

Unsure if we need to be regulated as it’s kind of like insurance or if i can simplify it to just be a premium warranty service.

it’s all being done In house so we are not involving any other company.

Any feedback welcome

 

[dotcomdude]

I don’t have a definitive answer for you, but it sounds like just a simple contract between you and them - rather than a risk that is offset by another company.

 

[Carl Nixon]

With things like electrical goods or cars, there are third-party companies that provide ready to up-sell extended warranties. They must pay out really good commissions and they must provide a service that saves the seller from maintaining the warranty, because I have never seen an electrical outlet or a car dealership offering their own "in house" warranties - it is always bought in warranties from third parties.

Is there a similar service for watches that you could sell and take the commission on instead?

You may even get a double bite of the cherry if they send the watches back to you for repairs