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How Do I sell Warranties?

post #1 of 29
Thread Starter 
I work at a retail electronics store in the technology department (also occasionally selling TV's or White Goods). My sales figures are fine - good even considering I work in a dept. with lower price points, but the problem is in order to get commission I need to sell warranties on 10% of goods. This is proving to be very difficult for me (and others in my store) to achieve - I ask every customer, go through the numerous advantages of extended warranties, but very few seem to buy. I'm not sure if it is because I am young (17) and adults don't trust my judgment 100%, or this is just a product of the "throw away society" we know live in (a line used by many customers).

My question to you SFers, is what techniques would convince you to buy an extended warranty on electronics? I am in need of some tips - anyone have any experience in retail (buying or selling) who is willing to help me out? Thankyou.
post #2 of 29
Quote:
Originally Posted by Dope Nixon View Post

I work at a retail electronics store in the technology department (also occasionally selling TV's or White Goods). My sales figures are fine - good even considering I work in a dept. with lower price points, but the problem is in order to get commission I need to sell warranties on 10% of goods. This is proving to be very difficult for me (and others in my store) to achieve - I ask every customer, go through the numerous advantages of extended warranties, but very few seem to buy. I'm not sure if it is because I am young (17) and adults don't trust my judgment 100%, or this is just a product of the "throw away society" we know live in (a line used by many customers).
My question to you SFers, is what techniques would convince you to buy an extended warranty on electronics? I am in need of some tips - anyone have any experience in retail (buying or selling) who is willing to help me out? Thankyou.

Most people know that extended warranties in MOST cases are a complete and Total Rip-Off for the Consumer.
Do some research and find out why.
As a matter of fact armed with that knowledge (concerning the uselessness) of extended warranties it's probably Unethical/immoral and/or Sinful to sell them...

Hope this Helps...nod[1].gif
post #3 of 29
Thread Starter 
I know for some products they arer pointless but not for $500+ electronics in my opinion. And I know the reasons people don't like them. That's not what I asked. Its all about the benjamins - how do I sell them? What techniques proved effective on yourself?
post #4 of 29
The most important lesson anyone will ever tell you about sales:

People are stupid and will believe whatever they're told.
post #5 of 29
People respond to fear
post #6 of 29
I just bought new electronics for the house, but not warranties for the items. There's essentially no argument that'll work on me for buying warranties.
post #7 of 29
Quote:
Originally Posted by JayJay View Post

I just bought new electronics for the house, but not warranties for the items. There's essentially no argument that'll work on me for buying warranties.

+1

This.

I usually inform the salesperson right up front I'm not interested and never will be.

I also think Amex covers most of my purchases anyway
post #8 of 29
Quote:
Originally Posted by Dope Nixon View Post

I know for some products they arer pointless but not for $500+ electronics in my opinion. And I know the reasons people don't like them. That's not what I asked. Its all about the benjamins - how do I sell them? What techniques proved effective on yourself?

Those warranties are a horrible deal. I intended to advise you to find a sales job where you don't need to screw people in order to make money, but I see that is unnecessary for you. You are just the kind of jerkoff salesman who will screw over weak/dumbass types but will only piss off or annoy someone with any knowledge.
post #9 of 29
And if it is all about the Benjamins, GTFO of the stupid ass big box store and find a sales job with some potential. There are plenty out there.
post #10 of 29
Quote:
Originally Posted by bkstone View Post

The OP is 17 years old, not many lucrative sales jobs are going to hire a 17 year old. The OP is probably still in highschool.

I see that now. Maybe I was a little harsh considering the age of the OP. The "all about the Benjamins" thing set me off a little. I have many years of sales and sales management experience. It is my firm belief that one will make more money and have a better life if he deals 100% honestly and sells things which he believes in. Nobody who has done their homework believes that a $50 dollar extended warranty on a $375 TV is a fair deal for a buyer. If your sales job requires that you sacrifice your personal integrity then you are selling the wrong thing.

Nobody is going to hire a 17 year old for a good sales job, but he can make his own. When I was 18 my summer job was painting houses. Not working for someone else, working for myself. I bid the jobs including materials and labor and I averaged paying myself 3.5 times the minimum wage. Not bad for a kid. Even if a kid is just going door to door hustling up some manual labor work, he can make some good money. And it is all about selling.
post #11 of 29
Guys - this isn't why YOU DON'T BUY warranties. This is HOW CAN HE SELL warranties.

Next tip - EVERYTHING BREAKS. Its just a matter of time. Are you willing to gamble that you're going to end up inside of 1 year?
post #12 of 29
Scare them with stories about people who came back to the store without warranties. Trust me, when I worked retail the commissioned sales guys would use this tactic to scare customers into buying warranties all the time.
post #13 of 29
1. Lower the impact. Price of warranty/years covered.
2. Be honest - Many c-cards cover electronics these days, so they may not need it.
3. Quote it including the price - Thats $250 including the three year warranty. Whats that, you don't want the warranty? Then I can do it for $200, but are you sure?
4. Make it sound better - With our $50 warranty, you don't have to worry about it going wrong until 2014. By that time you'll fancy a new one anyway!

Ultimately a warranty is a security blanket. Those with less to spend, or who need the security should buy them. If they don't need them however, don't even try. Trust between you adn teh client is far far far more valuable than the extra 5% sale price.
post #14 of 29
Quote:
Originally Posted by Dope Nixon View Post

I know for some products they arer pointless but not for $500+ electronics in my opinion. And I know the reasons people don't like them. That's not what I asked. Its all about the benjamins - how do I sell them? What techniques proved effective on yourself?

I'd buy a warranty if it's a product I'd want to sabotage before the warranty ends to get a new version.
post #15 of 29
Quote:
Originally Posted by Blackhood View Post

1. Lower the impact. Price of warranty/years covered.
2. Be honest - Many c-cards cover electronics these days, so they may not need it.
3. Quote it including the price - Thats $250 including the three year warranty. Whats that, you don't want the warranty? Then I can do it for $200, but are you sure?
4. Make it sound better - With our $50 warranty, you don't have to worry about it going wrong until 2014. By that time you'll fancy a new one anyway!
Ultimately a warranty is a security blanket. Those with less to spend, or who need the security should buy them. If they don't need them however, don't even try. Trust between you adn teh client is far far far more valuable than the extra 5% sale price.
Quote:
Originally Posted by Fuuma View Post

I'd buy a warranty if it's a product I'd want to sabotage before the warranty ends to get a new version.

Best two pieces of advice so far. Also, make up a couple of stories about customers that used their warranty days before it expired and how that item is no longer made so they got a brand new updated model.
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