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The True Cost of Doing Warranty Work

If you're an integrator, have you figured out how to turn TV service work into a profit instead of a cost?


As you all know, with custom installs, the dealer has a higher degree of "ownership" in the system than someone who vends retail products over the counter.

Accordingly, custom dealers have to take exemplary care of their clients, and expect their vendors to do the same for them. That's why vendors who cater to the custom channel typically offer extremely customer service-friendly warranty policies to their dealers and end users.

But it's not always that simple. When it comes to warranty service, there are issues in the custom channel that remain challenging to integrators, especially in the video category.

How Do You Handle a Mounted Flat Panel?


When flat-panel displays break down, the vendor's warranty for bigger sizes typically specifies in-home service.

Realistically, most flat-panel TVs sold by integrators are inevitably mounted, whether on a wall or on a motorized lift. In my market area, none of the vendor-authorized TV repair centers will dismount a TV in order to service it.

They're both unpaid for that aspect of the labor and they're unwilling to accept the liability of damaging the TV or the home's walls or cabinetry by dismounting it. So if one of your client's TVs breaks down, that's the first impasse.

The second is that because of the nature of the integrator's business, the client expects, even demands that the integrator takes ownership of the installation over a long timeframe.

That means that if they have a dead TV, and the TV repairman refuses to dismount it in order to service it, the expectation is that you, the integrator will have to do so.

The True Cost of Warranty Work


On the dollars and cents side, it takes two installers fifteen minutes to a half an hour to dismount -- and again to remount -- the TV.

That's after an hour or two servicing the TV, and doesn't even count travel time.

So who's paying the integrator?

The client? Unless you've specified that from the beginning in your relationship, it's hardly fair.

The TV vendor? Good luck. I've spoken to more than one representative for video vendors, and while they all agree in principle that the integrator should be looked after, I've yet to meet one who's willing to do so themselves.

Even brands that I've known to replace a client's display and upgrade them to a new model -- rather than have it serviced -- are still loath to compensate the dealer for their labor.

All the dealers I know who've had to deal with defective video displays have swallowed the costs of assisting the TV repairman as a cost of doing business.

In many cases, since they're committed to this course of action, they'll go all the way, including transporting the unit to and from the service center. However, that doesn't mean that any of them like it.

So the question to CE Pro readers is this: do you have a better solution?

If you're an integrator, have you figured out how to turn TV service work into a profit instead of a cost? If you're a video vendor, have you partnered with your dealers to better service their clients?

Let us know what you think in the comments below.

Lee Distad is a freelance CEDIA Certified Professional Designer who offers design and process consultation to firms in the Custom Installation industry, as well as copy writing and other professional writing services. Lee’s business and industry blog can be read at http://www.leedistad.com

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Article Topics

News · Business Resources · Displays · All topics

3 Comments (displayed in order by date/time)

Posted by CCD  on  04/16  at  12:28 PM

To me warranty work is a free way to get back in front of the client and be the hero. It costs a tone of money time and effort to get in the door in the first place and this gives me a free return trip to see if I can further meet my client’s needs.

Posted by mavman  on  04/18  at  01:37 AM

You make some good points Lee, after wearing these warranty costs too many times I have tried to take a stand on this issue. These days I make it clear to customers that manufacturers warranty does not include removal and reinstall. We will happily provide a service to remove, reinstall, recalibrate etc at competitive rates, we are facilitating the manufacturers warranty. The Vendor or repairer wont wear these costs so why should we? What are other integrators out there doing? I would like to hear some opinions.
As far as the comment from CCD, I would rather be offering a free basic maintenance visit to get back in front of the customer or just a phone call “Are you still happy with everything”

Posted by Austin Mayo  on  04/18  at  11:20 AM

This is not a problem. It is an opportunity.

There is plenty of precedents both ways in and outside the CE industry. For example unless you buy a extended warranty plan (with specific tow coverage) for your car you will likely pay for your tow when your car breaks down while it’s under warranty.On the other hand many extended service plans for mobile CE products include the cost of removal and re-installation yet the very same companies do not offer those terms to TV buyers.

This looks like an opportunity for the extended service plan providers to step up to the plate and add that optional Reℜcoverage for TVs. Of course in the absence of that option the seller could offer their own “insurance” coverage at the time of sale for a additional cost. When I decline insurance products during transactions such as auto purchases and financing, I have to initial that I have declined those services or insurance options. It definitely makes me think twice about the option and it is very clear what choices I am making. The most important thing is for these types of risks to be discussed and transparent to the customer, preferably in writing at the time of of the sale.

It is also important that sellers offering extended service plan products discuss this aspect with their providers. I have found that this type of feedback can often lead to positive changes or enhancements in those types of products.

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