Sometimes, people wouldn’t know a good thing if it gave them a warm hug.
Unfortunately, what you’re selling really is an easy-to-dismiss hug, one many prospects just don’t appreciate.
But what if you could turn those extended warranty objections you hear all the time into opportunities to nail the sale?
Well, read on and you will.
EXTENDED WARRANY OBJECTION #1: “THEY’RE TOO EXPENSIVE”
When you hear this, reply with a basic question: “Expensive compared to what?”
A new appliance? A new engine?
Between increased material expenses and inflation, it seems like many people don’t understand how much repairs really cost today.
- Average washing machine repair cost: $300
- Average refrigerator repair cost: $250
- Average furnace repair cost: $321
What’s more, according to a Consumer Reports survey, car owners who made an extended warranty claim saved a median amount of $837 with their policy.
If anything, it can be more expensive to not have a service contract.
EXTENDED WARRANTY OBJECTION #2: “I’LL FIX IT MYSELF”
We admire self-reliance. And there’s nothing wrong with a DIY attitude.
But how many circuit boards does the average person have laying around? Do they really have a spare water pump in their garage? Would they even know what parts, specifically, they need?
It’s easy to say “I’ll do it if I need to.” But when you need to, it usually proves more difficult than originally thought.
Consider:
- 47% of DIY repairs are done wrong
- 35% of homeowners avoid repairs due to complexity
So, reinforce the convenience of having a certified professional do the job, without needing to make another trip to the store for a missing part.
EXTENDED WARRANTY OBJECTION #3: “MY MANUFACTURER’S WARRANTY IS ENOUGH”
When a prospect says this, they’re already admitting two things!
1. There’s a chance their product will need to be repaired
2. They understand the benefits of having coverage
So, you’ve got a foot in the door.
There’s just a problem or two with their thinking. Manufacturer warranties have a limited lifespan, especially for appliances. And HVAC warranties don’t last anywhere near long enough (unless a registration form is filled out at time of purchase).
What’s more, most don’t understand what’s covered by their extended warranty to begin with! They just know they have one and assume — wrongly — that anything and everything will be.
This is your chance to press them for specifics on what’s included in what they already have. And if they hesitate (which they probably will), state what your extended warranties cover. Moreover, your policies might offer additional benefits such as roadside assistance, rental car reimbursement or transferability.
EXTENDED WARRANTY OBJECTION #4: “THEY’RE A RIP OFF”
Unfortunately, our industry has a bad reputation. Poor reviews and one-star ratings abound.
But that’s not the policy’s fault.
It’s either because the customer doesn’t know what’s included, or your sales rep didn’t fully explain what is and isn’t covered — and both scenarios can be avoided.
In fact, this is something your company can completely control.
You could make it a part of your onboarding or training process to explain the major expenses that are covered. You can also send a follow up email after your first conversation detailing the specifics.
Being transparent will only help you get good reviews — which you should absolutely share in all of your marketing. Provide links to your BBB profile. Display your TrustPilot rating in your website’s footer.
Anything and everything to reinforce that your company is selling the opposite of snake oil.
EXTENDED WARRANTY OBJECTION #5: “I’VE NEVER NEEDED ONE BEFORE”
If only everyone could be so lucky!
While it can be tempting to ask what their secret is, you’ll probably only hurt your case.
Instead, point out that their luck is due to run out. Something, sooner than later, is going to need to be addressed — and you have some stats to prove it.
For example:
- 34% of all refrigerators will need repairs within five years
- $14 billion is spent every year on HVAC repairs
This doesn’t even include the thousands of car repairs that happen across the country, every day.
While there are few guarantees in life, virtually 100% of everything will either break, need a repair or quit working altogether.
And your customers won’t need to worry when the inevitable happens.
IN SUMMARY
Most prospects will have an excuse for not needing an extended warranty. Hopefully, the reasons you just read will give you enough to overcome them.
But, there’s only one way to find out.
Try including these as part of your extended warranty sales script — one of the many features included with Inline CRM.
Go ahead and try it yourself for free, with no obligation or commitment required!
There’s really no excuse not to.
