During the sales process, it is inevitable warranty periods
will be raised. I remember raving about
how the latest and greatest HVAC product led the industry with the longest
warranty period. Very often this only
lasted a short period of time as other Manufacturer’s would continue to match
warranties with their line. Things often
got out of hand as warranties have reached ‘limited lifetime’ on parts like
compressors or heat exchangers. So, who
wins when things reach the extreme?
Let me tell you a quick story as an example. Let’s say Eleanor Rigby calls Joey Bag
O’Donut's HVAC to install a mechanical system. Eleanor, being an elderly and
lonely homeowner, was wooed into the solution that would provide the most
comfort in her twilight years. Since
she spends a lot of time at home, and every summer seems to be warmer than the
last, Mrs. Rigby spared no expense on her new multi-zone ductless heat pump. She wanted to make sure her comfort was
protected with the industry’s highest 12 year limited warranty, and keeping her
electric bills low were her priorities as she is on a fixed income these days. Joey did a great job; his workmanship is
second to none! They should really consider re-branding his company; the name gives a bad impression…
Let’s fast forward 10 years.
Mrs. Rigby took great care of her system, having Joey’s service
department return every year for maintenance.
This kept her unit under manufacturer warranty and operating at its peak
efficiency. Unfortunately, something
happened last night with the system and Eleanor had to call for emergency
service.
Contractor
Perspective
When Joey’s service tech showed up, he knew exactly what
happened. Eleanor was a great customer
and he wanted nothing more than to tell her it was going to be an easy
fix. This time it wasn’t. The control board failed after 10 years of
impeccable service, due to the compressor shorting out. This was a long time for a heat pump that ran
almost continuously year round! Joey’s
tech knows this type of work will take some time, and labor (along with the
older R-22 Refrigerant) is not covered under the manufacturer warranty. So, he delivers the bad news to the
homeowner. This is a tough conversation
for the technician, particularly since he knows they will not make any money on
parts. When covering Mrs. Rigby’s
options, he explains replacement of the system makes the most sense as
technology has come a long way in the last 10 years.
- The contractor is not able to make any money on the parts under warranty, time on paperwork, nor the sale of a new system if repaired, which could be the best option for Mrs. Rigby.
Homeowner Perspective
Mrs. Rigby is always on top of things. This includes scheduling maintenance and
paying her bills. How could she do
everything right and still have this problem?
She was so frustrated, she only bought this system 10 years ago and the
unit is still under warranty! How can
Joey’s tech be saying she should replace a system that has 2 years left from
the manufacturer? She knows she should
weigh her options, but realistically she has to go with the cheapest, and this
is to fix the system. Eleanor just
wasn’t budgeting for such an expense.
- An expensive repair gets the now ‘low efficient system’ operating once again.
Manufacturer’s
Perspective
An unhappy customer can be a lot to handle. The system is under warranty, installed to
their specifications, and has been maintained every year. Looks like the brand needs to supply a
compressor and control board for this old unit.
Let’s hope the distributors are able to locate old stock in their
warehouse because shipping these parts from overseas or cross country can take
weeks! A loyal customer like Mrs. Rigby
should not have to wait weeks to be comfortable. Warranty parts are a tough thing to budget,
even when failure of these systems are so rare.
After all, 10 years of operation is hardly a manufacturer defect! Is the Contractor sure this is what was wrong
– hate for this to come back and bite them if the repairs now show another
larger issue.
- Another lost opportunity to install the latest design in Mrs. Rigby’s home, who could have undoubtedly touched many leads when she talks about it at her church. How many years before this consumer is presented with a repair vs. replace option again? Will she blame the brand for the recent service costs?
So, who wins in this story?
We could argue all sides come out on the losing end with
higher warranties, a perspective that I never had when selling systems. Although this may help in the sales process,
is every factor considered when presenting the ‘highest warranty in the
industry’?
